The Macedonian Tendency: BBC NEWS | Asia-Pacific | Russia clinches gas pipeline deal

Saturday, May 12, 2007

BBC NEWS | Asia-Pacific | Russia clinches gas pipeline deal

BBC NEWS | Asia-Pacific | Russia clinches gas pipeline deal: "The new pipeline will carry gas from Turkmenistan, one of the world's largest sources of gas, through Kazakhstan to Russia.

'We will reconstruct the Caspian shore gas pipeline with a capacity of 10 billion cubic metres (per year) and build a parallel gas pipeline.' Mr Putin said.


We will reconstruct the Caspian shore gas pipeline with a capacity of 10 billion cubic metres (per year) and build a parallel gas pipeline
Vladimir Putin

Analysis: Russian deal
The deal represents a victory for Russia, which buys Turkmen gas at below-market prices.

The BBC's Natalia Antelava says the agreement is a huge blow to Washington, Brussels and Beijing, who have all been vying for direct access to Turkmenistan's gas.

They have lobbied strongly for a route under the Caspian Sea to Azerbaijan and Turkey, bypassing Russia.

Turkmenistan's massive gas reserves are effectively controlled by Moscow, since it relies on Russian energy giant Gazprom's Soviet-era pipelines for distribution."

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