Pipeliners

05-05-2006 Kommersant - Kazakhstan studies chances to construct a Trans-Caspian gas pipeline via Turkey to E.U., Kazakh Energy Minister Bakhtykozha Izmukhambetov announced after the meeting with E.U. spokesmen. The European Union counts on getting 20 bcm of gas from Kazakhstan by 2015 and stands ready to fund the project. It looks like Kazakhstan and E.U. have agreed on joint efforts to open transit of hydrocarbon via Russia, which is still the key transit territory for Europe. Izmukhambetov made his statement concerning the possible construction of gas pipeline once he had talks with Energy Commissioner Andris Piebalgs, who arrived in Astana yesterday to canvass the future of energy deliveries from Kazakhstan and to promise investments. Kazakh energy minister said Kazakhstan will submit a proposal to the European Commission related to construction of Trans-Caspian Gas Pipeline, including the funding of project and its feasibility study. The matter at stake is extension of Baku-Tbilisi-Erzerum (BTE) gas pipeline by Tengiz-Turkmenbashy branch worth up to $5 billion. The project will allow to export gas of Kazakhstan and Turkmenistan via BTE. Kazakhstan's application will be duly considered, Piebalgs promised. Regardless, no one has explicitly said so far that the project would be fulfilled. In the European Commission, they call the project the fourth transport corridor for gas deliveries to be implemented even if the cooperation with traditional gas suppliers, including Russia, ultimately steps up. Russia will have the access to an oil pipeline constructed to China, Kazakhstan announced yesterday via Interfax. Russia is expected to annually ship 5 million tons of oil to China through Kazakhstan. In view of that statement, the intention of E.U. is probably to show to Russia that there could be an alternative supplier of oil and gas and to enforce on it the Energy Charter, which will prevent Russia from discriminating the third countries, including Kazakhstan, when it comes to oil/gas transit via its territory. The Trans-Caspian project calls for attracting Azerbaijan as a participant, which will hardly face difficulties. During his April visit to Washington, Azerbaijan's President Ilham Aliev backed up the idea of shipping gas to Europe bypassing Russia.