TURKMENISTAN: MFA-AUTHORED ARTICLE OUTLINES

UNCLAS ASHGABAT 000973 SIPDIS STATE FOR SCA/CEN; EEB ENERGY FOR EKIMOFF/THOMPSON COMMERCE FOR HUEPER E.O. 12958: N/A TAGS: EPET PGOV EINV TX SUBJECT: TURKMENISTAN: MFA-AUTHORED ARTICLE OUTLINES GOVERNMENT ENERGY POLICY REFS: A) ASHGABAT 908; B) ASHGABAT 886; C) ASHGABAT 947 ¶1. SUMMARY: On July 30, state-run Neutralniy Turkmenistan newspaper published an article prepared by the Ministry of Foreign Affairs of Turkmenistan outlining the country's energy policy. The article also highlighted recent gas-export developments in the country's energy sector and speculated about using energy diplomacy as a tool for promoting national interests and closer international cooperation in the energy sector. Below is the summary of the most noteworthy parts of the article. END SUMMARY. ¶2. The article, titled "The Energy Policy of Turkmenistan: Many Geographic Alternatives, A Single Approach," began with a statement of Turkmenistan's commitment to diversification of its energy export routes, which is considered "a factor contributing to the development of regional economic cooperation." The article continued with a description of Turkmenistan's efforts to promote the western direction of gas exports. It praised the production sharing agreement (PSA) recently signed by the Turkmen Government with the German RWE Company (Ref A) and portrayed the PSA as the beginning of practical implementation of a westbound gas supply route. The article also praised the general development of political and economic contacts between the EU and Turkmenistan and emphasized that Turkmenistan welcomes that development. The "European" focus occupied about half of the article. ¶3. The article also reflected on the recent agreements reached by Turkmenistan and Iran on increased gas supplies to Iran and the new price formula for Turkmen gas, although without any mention of the exact price (Ref B). (NOTE: Iranian media reported this week that the new price is $170 per thousand cubic meters. END NOTE.) The article then continued with praise for Turkmen-China cooperation in the energy sector and the construction of the Turkmenistan - Uzbekistan - Kazakhstan - China gas pipeline. It also noted that the two countries have very close positions regarding the issues related to ensuring reliability and security of energy supplies to the world market. (NOTE: The article failed to mention both the existing pipeline routes leading to Russia and the proposed Turkmenistan - Kazakhstan - Russia gas pipeline project along the Caspian coast. END NOTE.) ¶4. COMMENT: The article appeared six days after President Berdimuhammedov's statement regarding the Turkmen Government's intention to take the Turkmen-Azeri Caspian boundary dispute to an international court of arbitration (Ref C). That statement triggered speculation in international media that an escalation of the Turkmen-Azeri dispute could jeopardize Western-backed projects aimed at transporting Turkmen gas to Europe. The article might be a sign from the Turkmen Government that its position regarding the Western- backed pipeline projects has not changed because of the Caspian dispute escalation and that the Turkmen Government still considers a Western direction for gas exports as a viable option. END COMMENT. MILES