Türkiye and Turkmenistan Set Eyes on Major Gas Trade in the Coming Two Decades
In an ambitious move to secure energy supplies and strengthen regional cooperation, Türkiye and Turkmenistan have laid out plans to trade a substantial volume of natural gas amounting to 300 billion cubic meters (bcm) over the next 20 years. This revelation was made by Türkiye’s Minister of Energy and Natural Resources, Alparslan Bayraktar, following his recent visit to Turkmenistan where he engaged with high-ranking energy officials.
The initiative underscores the growing partnership between Ankara and Ashgabat, with a specific focus on enhancing their energy ties. To kickstart this grand plan, both nations are considering the use of a swap mechanism to facilitate the initial exchange of 2 bcm of gas. According to Minister Bayraktar, this immediate phase could leverage existing infrastructural capabilities. However, for the envisioned volume to be traded in the coming years, the development of a new pipeline is imperative.
Bayraktar was optimistic about the numerous alternatives available to bring this project to fruition, with the ultimate goal involving the construction of a pipeline across the Caspian Sea. Such an infrastructure project would not only cater to the substantial gas volume intended for the market but also establish a long-term framework for gas transportation to western markets, including both Türkiye and Europe.
Turkmenistan’s investment in natural gas storage was another critical topic of discussion. Türkiye, through its state-owned entity, BOTAS (Turkish Petroleum Pipeline Corporation), is considered a leader in natural gas storage and infrastructure. With a current storage capacity of approximately 6 bcm, Türkiye is looking to double this capacity to 12 bcm by the year 2028, a vision that positions the nation as a pivotal energy hub in the region.
The discourse on energy cooperation between the two nations has been further echoed by Turkish President, Recep Tayyip Erdogan, who last month highlighted the impending transfer of Turkmenistan’s gas to both Türkiye and Europe. This transfer is envisioned to be facilitated through the expanded Trans Anatolian Natural Gas Pipeline Project (TANAP), underscoring the strategic importance of this pipeline in regional energy dynamics.
A testament to the growing interconnectedness in the region was the deal signed between Bayraktar and Azerbaijan’s economy minister earlier this year. This agreement, focusing on the capacity expansion of several natural gas pipelines, sets the stage for increased gas volumes from Azerbaijan. Additionally, it opens up the potential for Caspian region gas, including that of Turkmenistan, to be transported to Türkiye and Europe by 2030. A specific MoU to this effect outlines the route via Azerbaijan and Georgia for Turkmenistan’s natural gas heading towards Türkiye.
This ambitious plan between Türkiye and Turkmenistan not only strengthens their bilateral relations but also serves as a significant step towards ensuring energy security and diversification in the region. As both nations work towards materializing these projects, the eyes of the global energy market will undoubtedly be on the emerging dynamics within this strategic partnership.
