As Turkmenistan looks to expand its reach in the global energy market, its efforts to deliver natural gas to Türkiye via Azerbaijan and onward to Europe are gaining significant momentum. This ambitious project, known as the Trans-Caspian Gas Pipeline (TCGP), has the potential to strengthen energy security and promote economic cooperation between the participating countries.
The initial phase of the TCGP project aims to transport 2 billion cubic meters (bcm) of Turkmen gas annually to Türkiye through a 300-kilometer pipeline connecting the fields of Turkmenistan’s eastern coast to the Caspian Sea. From there, the gas will be transported via the existing South Caucasus Pipeline to the Türkiye-Georgia border, and then through Türkiye to Europe.
This project is a significant milestone in Turkmenistan’s energy strategy and marks the country’s first step towards diversifying its gas export routes. Currently, the majority of Turkmenistan’s gas exports go to China, with smaller amounts being sent to Iran, Russia, and other Central Asian countries. By opening up a new route to Europe, Turkmenistan will be able to tap into a larger market and reduce its dependence on a single buyer.
The TCGP project also holds major benefits for Türkiye and its role as a key energy hub in the region. With its strategic location between Europe and Asia, Türkiye has long been viewed as a natural transit country for energy resources. The TCGP will not only bolster Türkiye’s energy security but also contribute to its economic growth by providing a new source of revenue through transit fees. Furthermore, the project aligns with Türkiye’s goals of increasing its share of natural gas in its energy mix, reducing its reliance on foreign energy sources, and becoming a regional energy trading center.
The TCGP project is also set to strengthen the longstanding relationship between Turkmenistan and Azerbaijan. The two countries have a history of cooperation in the energy sector, with Turkmen gas being transported to the Azeri port of Baku via the existing Trans-Caspian Pipeline. The two countries are now deepening their cooperation by working together on the TCGP, demonstrating their commitment to regional stability and economic integration.
In addition to the economic benefits, the TCGP project also has major geopolitical implications. It will help to reduce Europe’s dependence on Russian gas, increasing its energy security and diversifying its sources of natural gas. This is a crucial step in ensuring a stable energy supply for Europe, especially considering the current tensions between Russia and some European countries.
Moreover, the TCGP project has received widespread support from the European Union, which sees it as an important part of its Southern Gas Corridor project. This corridor aims to transport gas from the Caspian region to Europe, decreasing the continent’s reliance on Russian gas and promoting energy diversification.
The TCGP project has made significant progress in recent years, with the signing of a memorandum of understanding between Azerbaijan, Turkmenistan, and Türkiye in 2011. Since then, feasibility studies and financial arrangements have been completed, and an intergovernmental agreement between Turkmenistan and Azerbaijan was signed in 2015.
The project also received a major boost in 2019 when the European Commission and the European Investment Bank pledged support for the TCGP during the 5th meeting of the High-Level Working Group on the Caspian Sea in Brussels. This support demonstrates the potential of the project and its importance in promoting energy cooperation between Europe and the Caspian region.
While there are still challenges to be overcome, including the finalization of commercial agreements and financing, the TCGP project is making steady progress towards its goal of delivering Turkmen gas to Europe. With the involvement and support of multiple stakeholders, including the governments of Turkmenistan, Azerbaijan, and Türkiye, as well as international organizations, the TCGP is well positioned to become a viable and beneficial project for all parties involved.
In conclusion, the TCGP project is a significant development in Turkmenistan’s energy strategy and has the potential to bring positive economic, geopolitical, and energy security benefits to all participating countries. As it moves towards completion, it is important to continue supporting and promoting this project to ensure its success and contribute to the stability and prosperity of the region.