Turkmengaz to Finance East-West Pipeline Link to Caspian

May 24, 2010
Construction on the East-West pipeline, which is meant to link north-east gas fields in Turkmenistan with the Caspian region, will be carried out with funds from the state concern Turkmengaz, RIA-novosti reports citing Turkmenistan television. Turkmenistan president Gurbanguly Berdymukhamedov signed a resolution on Friday instructing the Turkmengaz and Turkmennebitgazgurlushik state concerns to use Turkmengaz funds to design and build the pipeline. The East-West pipeline will have a throughput capacity of 30 billion cubic meters of gas a year. Work on the project is slated to begin in June 2010 and the pipeline is to be launched in June 2015 fully ready for operation.
The resolution does not state how much funding Turkmenistan will allocate for building the pipeline, but notes the costs will be determined by "actual expenses in accordance with calculating the costs of construction and repair work as confirmed by the Turkmenistan president on January 30, 2009".
An international tender for construction of 800  to 1,000 kilometers of the East-West gas pipeline in Turkmenistan was announced at the end of March last year. At the end of May 2010, Turkmengaz announced that over 70 companies from Russia, China and the EU has expressed interest in taking part in the project.
The East-West pipeline is to become the main link in the Turkmenistan gas transport system. the pipeline is to be filled by the South Yolotan gas field which the British auditor Gaffney, Cline & Associates has calculated to be one of the biggest four gas fields in the world.
Experts note the East-West pipeline could supply gas to both the Caspian pipeline and the Transcaspian trunk line, which depends on the Nabucco project progressing.
Copyright 2010, Oil and Gas Information Agency. All rights reserved.