PREVIEW-Gas diplomacy heats up over Turkmen supplies

Tue Apr 21, 2009 9:07am BST
 
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By Maria Golovnina

ALMATY, April 21 (Reuters) - Turkmenistan hosts a high-profile energy conference this week which is likely to turn into a diplomatic battlefield between Russia and Europe, both seeking control over gas flows from the energy-rich nation.

Europe has courted the remote Caspian country as it seeks to diversify supplies and reduce its gas dependence on Russia. Moscow is irritated by these overtures because it sees ex-Soviet Turkmenistan as part of its traditional sphere of interest.

On April 23, officials from the opposing camps will come directly head to head when delegations from Russia, the United States and Europe descend on Turkmenistan to attend an energy security conference organised by the government.

Turkmenistan -- Central Asia's biggest gas exporter -- sells most of its gas through Russian gas monopoly Gazprom (GAZP.MM) but it has shown growing willingness to open new lines to Europe as it develops untapped fields.

Diplomacy intensified this month after a gas explosion on a key Turkmenistan-Russia pipeline highlighted the vulnerability of gas flows and reinforced the West's determination to end Turkmenistan's dependence on Russia.

"This explosion has given Turkmenistan an additional excuse to seriously think about alternative supplies to Europe," said Valery Nesterov, an analysts with Troika Dialog in Moscow. "It's a growing trend in Turkmenistan and it's understandable."

Russia's energy minister, U.S. state department officials and executives from global multinationals will gather in Turkmenistan for the conference on Thursday and Friday.

The official agenda is transportation of energy -- a hot topic since the April 9 explosion which Turkmenistan says was caused by Russia's abrupt reduction of imports. Gazprom has not commented on Turkmen allegations.  Continued...

 

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