Turkmen pipeline to Iran

RUSSIA / FSU POLITICS - In Brief 04 Jul 2024 by Alex Teddy
On July 3 a contract was signed. The pipeline will enable 10 billion cubic meters (BCM) of natural gas to go to Iran each year. The gas will then be shipped to Iraq. The pipeline will be 125 km long. The price that will be paid by Iran has not been stated. Iran has the second largest reserves of natural gas in the world. It is the third biggest producer of hydrocarbons in the world. Yet it has 89 million people and sometimes has difficulty meeting domestic demand in winter. The export of natural gas is crucial for Turkmenistan's economy. It intends to increase exports to Iran to 40 BCM per annum but did not give a target date to achieve that.  Turkmenistan has proven reserves of 14 trillion cubic meters of gas. That is 4th in the world. It produces 80 BCM a year. Around half its natural gas goes to China. It is difficult for Turkmenistan to export its natural gas. It cannot ship liquefied natural gas (LNG) to the world market because it is landlocked.  Turkmenistan is an isolationist former Soviet republic. It is a member of few international organizations. It abstained on the Ukraine War vote in the UN. Turkmenistan and Iran have been exchanging gas with each other for a few years. But this has only been around 4 BCM per year. For decades there have been attempts to build a gas pipeline called TAPI (Turkmenistan, Afghanistan, Pakistan and India). TAPI has stalled since the Taliban took over Afghanistan in 2021. With Pakistan in disarray and bad relations between Pakistan and India it is doubtful that TAPI will ever be completed.  The Turkmens wanted to ship natural gas pipeline across the Caspian to Azerbaijan and from there to the EU. Iran and Russia do not like this...

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