Gas - The Times Of Central Asia

Viewing results 1 - 6 of 9

Iraq Seeks Alternative Gas Import Routes Through Turkmenistan Amid Sanctions Challenge

Iraq is intensifying efforts to implement a long-discussed agreement on natural gas imports from Turkmenistan, seeking to stabilize its energy sector and diversify supply sources. According to Ahmed Musa, spokesperson for Iraq’s Ministry of Energy, the plan involves importing around 20 million cubic meters of gas per day through pipelines connecting Turkmenistan and Iran. The route is intended to offset a shortfall caused by reduced gas flows from Iran, which currently supplies approximately one-third of Iraq’s energy needs. However, the implementation of this deal has faced significant hurdles. Chief among them is the issue of payments: the Trade Bank of Iraq (TBI) has been unable to issue a letter of credit due to U.S. sanctions on Iran, through whose territory the gas must transit. In an effort to resolve the deadlock, Iraqi Energy Minister Ziad Ali Fadel visited Turkmenistan to explore potential mechanisms to bypass the sanctions and operationalize the agreement. The foundations of this partnership were laid in 2023, when Iraq and Turkmenistan signed a memorandum of understanding, agreeing to continue negotiations on the logistics of fuel transit via Iran. Progress followed in November 2023, when both sides signed a protocol outlining the key commercial terms. Under the deal, Iraq is set to receive 45 billion cubic meters of gas over five years, equivalent to 9 billion cubic meters annually. The arrangement is structured as a swap: Turkmenistan will deliver gas to Iran, which in turn will transfer an equivalent volume to Iraq. Further advancing bilateral ties, Turkmenistan’s President Serdar Berdimuhamedov discussed gas supplies and the potential opening of an Iraqi embassy in Ashgabat with Iraqi Prime Minister Mohammed Shia Al-Sudani in March 2025. The talks underscored the growing strategic importance of energy cooperation between the two nations. A Strategic Energy Lifeline Iraq's reliance on natural gas to power its electricity grid makes securing reliable fuel sources a national priority. Given the country’s frequent power shortages and its current dependence on Iranian gas, diversifying suppliers is seen as crucial for both energy security and political autonomy. Turkmen gas is viewed as a strategically vital resource that could help stabilize Iraq’s energy sector and reduce vulnerability to geopolitical disruptions. The five-year agreement with Ashgabat aims to establish predictable, long-term supplies. Nevertheless, full-scale gas deliveries have yet to begin. The main obstacle remains the inability to process payments due to U.S. sanctions on Iran. Baghdad must either secure exemptions or devise alternative payment mechanisms to activate the contract. Simultaneously, technical discussions continue among Iraq, Iran, and Turkmenistan on ensuring reliable transport and infrastructure under the swap scheme. If these issues are resolved, Iraq could gain a dependable new energy partner, while Turkmenistan would expand its reach into a key southern market, strengthening both nations' strategic positions.

Caspian Sea Gas Gas project XRG Abu Dhabi National Oil Company (ADNOC)

Abu Dhabi Energy Giant Joins Offshore Gas Project in Turkmenistan

XRG, the international investment arm of the Abu Dhabi National Oil Company (ADNOC), has acquired a significant stake in a major offshore gas project in Turkmenistan’s Caspian Sea sector. The deal was announced on May 14 by energy news outlet Neftegaz, citing the company’s press service. Established in late 2024, XRG manages $80 billion in assets and focuses on global investments in chemicals, natural gas, and renewable energy. The initiative forms part of Abu Dhabi’s broader strategy to diversify its international portfolio and reduce reliance on crude oil exports. Under the new agreement, Malaysia’s state energy company Petronas will retain a 57% majority stake in Caspian Block I. XRG will hold 38%, while Turkmenistan’s state company Khazarnabit will control the remaining 5%. A long-term gas sales agreement was also signed with Turkmenistan’s state concern Türkmengaz. In parallel, Petronas, Khazarnabit, and the state oil company Türkmennebit concluded a new production-sharing agreement for Block I. Located offshore in the Caspian Sea, Block I currently produces approximately 400 million cubic feet of natural gas per day and is estimated to hold over 7 trillion cubic feet in reserves. Petronas has operated in Turkmenistan since 1996 and manages a gas processing plant and onshore terminal in Kiyanly. This latest agreement builds on momentum from a high-level visit by Turkmenistan’s National Leader Gurbanguly Berdimuhamedov to the United Arab Emirates in January 2024. During the visit, ADNOC and Türkmengaz signed a memorandum of understanding to explore joint development of the third phase of the Galkynyş gas field and associated infrastructure.

Gurbanguly Berdimuhamedov Uranium Supply Gas Bilateral Relations China

L’Étranger: Paris Hosts the Reclusive Leader of Turkmenistan

Gurbanguly Berdimuhamedov, Turkmenistan’s longtime ruler, no longer holds the title of president; that has been passed, along with much of the public burden, to his son. He now reigns from the shadows as Hero-Arkadag (“Hero-Protector”), but he retains the ability to open doors. Nearly 14 years after his last official visit, Berdimuhamedov landed at Paris’ Orly airport last Monday. He was in France ostensibly to attend the Franco-Turkmen Economic Forum, but the visit also saw him ushered into the Élysée Palace for an audience with President Emmanuel Macron. Characteristically, his presence in Paris was kept quiet, receiving very little coverage even in the French media. “It was much less discussed than the near-concurrent visit of the Syrian leader, Ahmed Al-Charaa,” Michaël Levystone, co-founder of l'Observatoire de la Nouvelle Eurasie, a Paris think tank told The Times of Central Asia. “You have to understand that Turkmenistan is a country that is virtually unknown to the general public in France – and for good reason: it goes out of its way to remain extremely discreet!” Nevertheless, the visit marks a rare moment of high-level Western diplomacy with one of the world’s most opaque regimes, as well as an extremely uncommon public diplomatic appearance from Berdimuhamedov Senior since ceding formal power in 2022. The questions are why France? And why now? What Was Discussed The two readouts of the encounter were notably different. The Élysée offered a terse summary on its website, noting vaguely that the meeting “provided an opportunity to review the bilateral relationship between Turkmenistan and France as well as regional issues.” Macron then followed this up with an equally laconic post on X, noting that the two had “signed several agreements between Turkmenistan and France in the areas of energy transition, infrastructure, education, and culture. They demonstrate the strengthening of our cooperation. We also took stock of major regional and international crises, including Russia's war of aggression against Ukraine and the situation in the Middle East.” On the other hand, the state-run news service Turkmenistan Today provided what can only be described as a detailed travelogue, noting the many dignitaries who had the pleasure of meeting the Hero-Arkadag on his whistle-stop tour of the City of Lights. According to the Turkmens, the visit yielded a flurry of agreements. A memorandum of understanding was inked between state-owned Türkmengaz and French tech firm Kayrros SAS, while France’s Thales Alenia Space Group signed a framework deal to provide Ashgabat with a second communications satellite. There were further promises of joint work on green energy, education, and archaeological research. A Foot in the Door One French company in particular is responsible for much of the engagement between the two countries. As part of his trip to Paris, Berdimuhamedov met with construction magnate Martin Bouygues, CEO of the firm that bears his family’s name. [caption id="attachment_31644" align="aligncenter" width="2560"] The Presidential Palace and ministries complex, built by the French company Bouygues; image: TCA, Stephen M. Bland[/caption] “Bouygues has built numerous monumental buildings in Ashgabat since Turkmenistan's independence,” Levystone told...

Industrial Industrial Modernization Gas Uzbekistan

Uzbekistan Aims to Save 1.1 Billion Cubic Meters of Gas in 2025

Uzbekistan’s Statistics Committee has released data on industrial production for January and February 2025, revealing a continued decline in natural gas output. During this period, the country produced 7.37 billion cubic meters of gas, down 329 million cubic meters (4.2%) from the same period in 2024 and 781 million cubic meters compared to 2023. Depleting Reserves and Rising Demand Azim Ahmadkhadjayev, head of the state nuclear agency Uzatom, attributed the decline to the depletion of existing gas fields and delays in developing new ones. Simultaneously, Uzbekistan’s industrial production is accelerating, driving up energy demand. “The existing fields are running out. Discovering and developing new reserves requires substantial investment. Work is underway, but the transition takes time,” Ahmadkhadjayev told the Alter Ego project. He also emphasized that the future expansion of nuclear energy would reduce reliance on gas. Amid these challenges, the government is prioritizing energy conservation. At a March 26 meeting, President Shavkat Mirziyoyev outlined ambitious goals: saving 1.1 billion cubic meters of natural gas and 2.6 billion kilowatt hours of electricity in 2025. Outdated Infrastructure and Industrial Modernization Many of Uzbekistan’s industrial facilities date back several decades and were not designed with energy efficiency in mind. This outdated infrastructure consumes disproportionate amounts of electricity and gas, leading to regional shortages during peak demand. To address this, the government is modernizing key industries and implementing a dedicated energy-efficiency program for large enterprises. With the population projected to reach 41 million by 2030 and, energy demand expected to grow by 1.5 times, long-term planning is critical. Researchers in Samarkand, Syrdarya, and Jizzakh have identified potential energy savings of 870 million kilowatt hours of electricity and 420 million cubic meters of gas. One proposed measure is replacing 35,000 outdated machines in small and medium-sized factories. Local Energy Initiatives Energy savings are also being pursued at the community level. The government plans to install small solar power plants in 300 neighborhoods, aiming to save 45 million cubic meters of gas in 2025. Additionally, over 1,000 micro hydropower stations are planned on canals and streams to generate supplemental electricity. Street lighting is another major energy consumer, using 200 million kilowatt hours annually. Transitioning to solar-powered lights could halve this consumption. President Mirziyoyev stressed the need for factories to adopt energy-efficient technologies and reduce waste. A new monitoring system will ensure the proper implementation of these energy-saving measures. Focus on Renewables and Public Awareness The government is also promoting energy-conscious behavior among citizens. Simple actions, like turning off unused lights or installing solar panels, can collectively contribute to national energy goals. Particular attention is being paid to the densely populated Fergana Valley. A tailored energy plan is being developed for the region, with successful strategies to be expanded nationwide.

Energy Security Gas Pipelines Energy Infrastructure Gas Natural gas Export of Natural Gas Turkmenistan Energy

Uzbekistan Looks to Turkmen Gas to Tackle Winter Energy Crisis

Uzbekistan has faced persistent gas and electricity shortages for over 25 years, leaving many citizens to rely on stoves and makeshift heating systems to stay warm during harsh winters. In 2024 alone, 82 people have died, and another 80 remain in serious condition due to carbon monoxide poisoning. The situation could improve if Uzbekistan shifts to importing natural gas from Turkmenistan. Turkmenistan recently declined to renew its gas contract with Russia, citing its strategy to diversify exports and secure better prices. With natural gas reserves estimated at 17.5 trillion cubic meters, Turkmenistan is a regional energy powerhouse, supplying significant volumes to China while maintaining domestic stability. Meanwhile, Uzbekistan’s gas production has declined, exacerbating its energy crisis. Despite ranking 17th globally in terms of gas reserves, Uzbekistan produced only 33.48 billion cubic meters of natural gas between January and September 2024 - 4.8% less than during the same period last year. At the same time, energy demand is rising due to population growth and a 6% economic expansion. Experts suggest that prioritizing imports from Turkmenistan could alleviate Uzbekistan’s energy woes. Former Energy Minister Anvamirzo Khusainov highlights the 1,500-kilometer border shared by the two countries and the existing pipeline infrastructure that could facilitate Turkmen gas imports. However, such a decision would require Uzbekistan to reduce its historical reliance on Russia - a move that carries significant political implications. The approaching winter may force Tashkent to make this critical choice. Reliable and cost-effective gas supplies from Turkmenistan could provide much-needed relief and help Uzbekistan address its longstanding energy shortages.

Afghanistan TAPI Pipeline Pakistan Gas Export of Natural Gas

Work Begins on Afghan Section of the TAPI Gas Pipeline

Turkmenistan and Afghanistan have now begun construction of the Afghan section of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline. To mark the launch of work on the pipeline’s Serhetabat-Herat section, Chairman of the Halk Maslahaty (People’s Council) of Turkmenistan, Gurbanguly Berdimuhamedov, and Mullah Mohammad Hassan Akhund, the Prime Minister of the Taliban-led Afghan government, attended a ceremony at a checkpoint on the Turkmen-Afghan border on September 11. The staged installation of the TAPI pipeline, already completed in Turkmenistan, will eventually transfer 33 billion cubic meters of Turkmen natural gas annually to Afghanistan, Pakistan, and India. At an estimated cost of $10 billion, the TAPI pipeline will span 1,814 kilometers. With 816 kilometers running through Afghanistan, the project will meet the country's gas needs, generating around $450 million in annual transit fees, before continuing on to Quetta and Multan in Pakistan and Fazilka in India. Gas-rich Turkmenistan currently exports natural gas to China and Russia but once completed, the TAPI project will enable the country to diversify its export routes and help realize far-reaching plans to transport its gas across the Caspian Sea to Azerbaijan, Turkey, and Europe. Mullah Mohammad Hassan Akhund stated that the commencement of work on the TAPI project on Afghan soil would strengthen relations between Afghanistan and Turkmenistan, whilst speaking from Ashgabat via videoconferencing, Turkmenistan President Serdar Berdimuhamedov, announced, "The commencement of the TAPI project [on the Afghan territory] and other projects is beneficial not only for Afghanistan but also for the countries in the region." In addition to TAPI, the ceremony opened a 177-meter-long railway bridge at the Turkmen-Afghan border on Serhetabat-Turgundi railroad, launched the construction of the Serhetabat-Herat (Afghanistan) fiber-optic communication line, a warehouse complex in the dry port of the Turgundi railway station at the Turkmen-Afghan border, and the Turgundi-Sanabar section of the Turgundi-Herat railway. The event also marked the commission of the Nur-el-Jahad power plant in Afghanistan's Herat province, as part of the first phase of the Turkmenistan-Afghanistan-Pakistan (TAP) power transmission line project.