GAZPROM
www.gazprom.com
Contact Information
2/3 Lakhtinsky Avenue,
Bldg. 1, St. Petersburg, 197229, Russian Federation
T: +7 812 413-74-44
F: +7 812 413-74-45
History in Turkmenistan
In 1996, Gazprom signed a Memorandum of Understanding with Turkmenrusgaz, Unocal, and Delta Oil Company to create the Central Asia Gas Pipeline (CentGas) consortium and construct a natural gas pipeline from Turkmenistan, through Afghanistan and into Pakistan.[i] Gazprom left the consortium in June 1998, Unocal left later that year, and the project came to a halt.
In 2003, Russia and Turkmenistan agreed to a 25-year Cooperation Agreement regarding the purchase and sale of gas.[ii] This gas is transported from Turkmenistan through Uzbekistan and Kazakhstan, via the Central Asia-Center Pipeline System before linking with Russian gas pipelines. In April 2009, there was an explosion on the fourth branch of the pipeline system, the Dovletabat-Daryalik pipeline, near the border with Uzbekistan. Immediately after the explosion, Turkmenistan’s Foreign Ministry issued statements alleging that the explosion occurred as a result of an impulsive decision by Gazprom to significantly decrease gas flow through the pipeline before technical measures had been taken to ensure that the pipeline would operate safely at reduced capacity.[iii] Gazprom, which had decided to reduce imports from Turkmenistan in response to decreased demand for gas in both Russia and Europe, countered that aging pipeline infrastructure was the cause of the explosion.[iv] While repairs to the ruptured pipeline were completed quickly, Gazprom suspended all gas imports from Turkmenistan indefinitely.[v] Eight months of tense negotiations regarding future gas prices ensued between Turkmenistan and Russia, finally culminating in a decision that Russia would import a lower annual volume of gas and that the prices would “be based on a fluctuating European price formula” rather than a fixed price agreement.[vi] Whereas Gazprom was importing an annual 50bn cubic meters prior to the explosion, the company agreed to purchase a maximum of 30bn annually going forward. Gas exports to Russia were reestablished in January 2010.[vii] However, in April 2010, it was announced that Gazprom would only import 10.5 bn cubic meters from Turkmenistan due to continuous low demand.[viii]
However, Gazprom’s interest in Turkmenistan has continued to decline. The company announced in 2015 that it would cut imports of Turkmen gas down to 4 billion cubic meters annually (bcma) followed by a 2016 decision to, once again, cut all imports.[ix] Gazprom returned in 2018 with official delegations, headed by Alexy Miller, meeting with President Berdymukhamedov.[x] This was followed by two agreements in 2019, first to purchase 1.2bcma for 2.5 months followed by a new agreement to purchase 5.5bcma until 2024.[xi]
In 2007, the governments of Russia, Turkmenistan and Kazakhstan entered into an agreement on constructing the Pre-Caspian gas pipeline from Turkmenistan and Kazakhstan north to Russia. In February 2010, the governments reached further agreement on both the Pre-Caspian pipeline and a trunk line to the East-West gas pipeline.[xii] There have been no further updates since 2012.
In October 2010, Russia’s Deputy Prime Minister, Igor Sechin, announced that Gazprom and Turkmenistan were discussing the possibility of joining the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project.[xiii] Days later, Turkmenistan’s Foreign Ministry denied that Gazprom was in talks regarding the TAPI project.[xiv] In January 2011, Russia’s former President Medvedev promised his country’s support for the project to Afghanistan’s President Karzai.[xv]
Please see the dossier on Naftna Industrija Srbije for more details on the operations of this Gazprom Neft subsidiary.
Current Scope of Operations
As of 2021, we have found no further updates on the activities of this company in Turkmenistan.
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[i] Chevron, Press Release: Unocal, Gazprom Sign MOU for Turkmenistan Gas Pipeline, Aug. 13, 1996, http://www.chevron.com/chevron/pressreleases/article/08131996_unocalgazpromsignmouforturkmenistangaspipeline.news. Original weblink no longer active.
[ii] Gazprom. Gas Purchases, http://www.gazprom.com/about/production/central-asia/. Original weblink no longer active.
[iii] Daly (2009).
[iv] Socor (Sept. 15, 2009).
[v] Socor (Jun. 30, 2009).
[vi] IHS Global Insight (2009).
[vii] BBC News, “Turkmenistan Opens New Iran Gas Pipeline,” Jan. 6, 2010, http://news.bbc.co.uk/2/hi/8443787.stm. Accessed February 18, 2022.
[viii] Soldatkin (2010).
[ix] Radio Free Europe Radio Liberty, “Gazprom Reaches Five-Year Gas Deal With Turkmenistan,” https://www.rferl.org/a/gazprom-reaches-five-year-gas-deal-with-turkmenistan/30035528.html. Accessed November 24, 2021.
[x] Gazprom, “Gazprom delegation visits Turkmenistan,” https://www.gazprom.com/press/news/2019/march/article477491/. Accessed November 24, 2021.
[xi] Radio Free Europe Radio Liberty, “Gazprom Reaches Five-Year Gas Deal With Turkmenistan.”
[xii] Gazprom, Gas Purchases, http://www.gazprom.cmo/about/production/central-asia/. Original weblink no longer active.
[xiii] RFE/RL, “Gazprom Considers Joining Turkmenistan-to-India Pipeline Project,” October 22, 2010, https://www.rferl.org/a/Gazprom_Considers_Joining_TAPI_Project/2198422.html. Accessed February 18, 2022.
[xiv] Upstreamonline.com, “Turkmenistan Denies Gazprom TAPI Pipe Talk,” October 28, 2010, http://www.upstreamonline.com/live/article234119.ece. Original weblink no longer active.
[xv] New Europe, “Russia Backs TAPI Gas Pipeline,” January 30, 2011, http://www.neurope.eu/article/russia-backs-tapi-gas-pipeline. Original weblink no longer active.