OREANDA-NEWS. June 01, 2010. The new gas pipeline East-West with the capacity of 30 million cubic metres per year will become an essential component of modern gas transportation system developed and modernized by Turkmenistan to meet the growing needs of the national economy and new realities that govern the global market for energy. To circle the network of major deposits in the country and ensure the efficiency of maneuvering gas export flows as well as to enhance gas supply reliability inside the country, the decision to construct the East-West gas pipeline 800-1000 km long was adopted on the initiative of the President of Turkmenistan. Construction of this new transnational gas pipeline will ensure supply of 30 billion cubic metres of gas from the richest deposits in the east of the country to the projected Caspian Sea and other possible gas pipeline network starting in the western region of Turkmenistan.

The Resolution of the President of Turkmenistan defines the period of construction and project implementers: the Turkmengaz State Concern and the Turkmennebitgazgurlusyk State Concern are to design and build the East-West pipeline. They are to launch the large-scale investment project on June 1. The gas main that will stretch from the Shatlyk gas compressor station (from the Dovletabat-Deryalyk pipeline) to the Belek gas compressor station in Balkan Velayat is to be built within five years.

The construction of this new gas route in the country will play a decisive role in fostering the development of the region at the pace set by the 2011-2030 National Social and Economic Development Programme of Turkmenistan. Construction and putting into operation of the East-West gas pipeline will enable to ensure effective operation of industrial facilities to be built on the gas route and implement a number of social and economic projects that have a critical impact on sustainable economic growth. So, the President’s economic development programme provides for constricting and putting dozens of new enterprises, power stations and other important industrial facilities into operation and taking the measures to promote the leading sectors, first of all, power industry, meet the growing needs of the regions in ‘blue fuel’ and ensure energy exports. Therefore, the new line with the capacity of 30 million cubic metres per year must become an essential element of the gas transportation network under construction in the country that is to distribute gas flows in the right directions.

The new energy policy of President of Turkmenistan Gurbanguly Berdimuhamedov assigns a special role to the East-West gas pipeline. It must become a key component of an extended gas infrastructure that is critical to meeting the domestic needs in ‘blue fuel’ as well as the needs of the transitional pipelines, both existing and new ones, able to ensure large-scale energy export.

As is known, the major priority of Turkmenistan’s energy strategy is diversification of natural gas supplies to world markets. Turkmenistan as the largest ‘blue fuel’ producer in Central Asia ranks among the world’s energy powers that have every requisite to increase natural gas production in the next few years. The national leader assigns the particular role in this short-range energy programme to integrated development of the existing huge reserves of hydrocarbon resources. The programme provides for a substantial increase in hydrocarbon production and processing, wide application of advanced technologies and expansion of cooperation with world’s leading companies. In accordance with the programme for development of the oil and gas industry for the period till 2030, natural gas production will be increased to 250 billion tons per year and oil production to 110 million tons per year, and it is planned to rise up natural gas exports to 125 billion cubic metres per year.

Moreover, by diversifying the system of transportation of natural gas to world markets, our country can become one of natural gas exporter. These prospects are justified, first of all, by the huge reserves of natural gas of such giant fields as the Southern Yoloten-Osman and Yashlar estimated by Turkmen specialists and proved by the audit of the international expert firm Gaffney, Cline & Associates. The Southern Yoloten-Osman field will become the major fount of gas for the export gas pipeline East-West. Construction of field facilities and putting this field in commercial production will significantly enhance Turkmenistan’s energy potential. Moreover, Turkmen specialist explored the Minara field and discovered previously unknown reserves of natural gas. This field is situated 90 km from the Southern Yoloten-Osman field. At present, the concrete steps are taken to extract natural gas there. The lax credit provided by the China State Bank will be used to implement the first phase of the project aimed at using underground riches. The contracts with world-renowned companies were concluded for construction of relevant infrastructure, gas production and gas processing facilities with the capacity of 30 billion cubic metres per year in the Southern Yoloten-Osman field. Moreover, Turkmen specialists carry out prospecting work in the neighbouring fields such as Jurji, Gazanly, Gundogar Yoloten, Gunorta Garakel, Gunbatar Yandakly. It is quite possible that all these deposits can be the world’s largest oil-and-gas accumulation region.

Also, Turkmenistan has several other deposits with substantial hydrocarbon reserves. At present, the Turkmengaz State Concern develop about 30 gas and condensate fields including such fields as Dovletabat and Shatlyk, the large deposits of Malay, Kerpicli, Garassyzlygyn 10 yyllygy, Gazlydepe, Bagaja, Yolguyy and others. The stock of production well includes about 1000 units. It is clear that in the future the new gas pipeline will unite these gas fields in the gas transportation system that will supply ecologically pure Turkmen gas in the European as well as easterly directions.

It should be noted that Turkmenistan has considerably enhanced its export potential in recent years. Along with the traditional gas routes to Russia and Iran, the Turkmenistan-China gas pipeline with the estimated capacity of 40 billion cubic metres per year was built and put into operation. The Dovletabat-Sarakhs-Hangeran gas pipeline put into operation this January enabled to nearly double gas exports to the neighbours. Abiding by the principle of diversification of natural gas supplies, Turkmenistan carries out the work to promote new gas pipeline projects including construction of the Caspian gas pipeline with the participation of three countries - Turkmenistan, Russia, Kazakhstan an the Turkmenistan-Afghanistan-Pakistan-India gas pipeline.

It should be noted that Turkmen specialists were actively engaged in building new gas pipelines in the territory of the country; on the instructions of the President of Turkmenistan the subdivisions of the Turkmengaz State Concern (Turkmentransgaz Association) and the Turkmenneftegazstroy State Concern built the gas pipeline to Iran. By successfully implementing the projects, our specialists accumulated the practical experience and mastered advanced pipeline construction technologies. The new task set by the Turkmen leader will demand much effort from Turkmen builders. The length of the East-West gas pipeline, a complex relief in which the gas pipeline will be built and the necessity to construct surface facilities that will ensure effective operation of the pipeline will demand high professionalism and skills in using state-of-the-art equipment and latest technologies. The preliminary estimates made by the chief project designer – the Institute of Oil and Gas of the Turkmengaz State Concern showed that at the first project phase the builders of the largest gas pipeline (diameter of 1420 millimeters) were to construct about 100 transfer passages of total of 300. They will have to cross highways, overcome the areas that threaten with mudslides, protect the pipe from salt marsh, groundwater and break through the hills. Nevertheless, the construction of new pipeline will not only become a test for professionalism but also lay the reliable foundation to develop social infrastructure and create thousands of new jobs in the territories crossed by the pipeline that will ultimately contribute to improving in people’s welfare.

The new energy policy of President Gurbanguly Berdimuhamedov defined the key priorities for further development of the fuel and energy sector in the next few years and the concrete measures to facilitate Turkmenistan’s integration in the world energy system. The programme provides for a significant increase in hydrocarbon extraction and processing, wide application of advanced technologies, expansion of cooperation with world’s leading companies. The vivid illustrations of this policy include the USD 10 billion worth investment project worth aimed at accelerating development of the Southern Yoloten field and independent construction of the East-West gas pipeline. Consistently implementing the large-scale international projects in the fuel and energy sector, the leader of the Turkmen state demonstrates a very responsible approach to international energy cooperation and the specific measures taken for this purpose including those to diversify hydrocarbon transit to world markets.