Reports from Turkish media highlighted the participation of delegations from the state companies “Turkmengas” and “Turkmenpetrol,” the Ambassador of Turkmenistan in Ankara, Mekan Ishanguliyev, and a delegation led by the Deputy General Director of BOTAŞ, Mithat Aydın.
The discussions were conducted within the framework of the “Protocol of Understanding on Expanding Cooperation in the Energy Sector,” signed during the first summit of the presidents of Turkey, Turkmenistan, and Azerbaijan in December 2022.
According to the Sabah newspaper, the initial phase plans to transport Turkmen gas to Turkey via Azerbaijan, followed by its sale to Europe through Turkey. This is part of the Russia-supported initiative to create a gas hub in Turkey.
The publication notes that Turkmen gas will be relatively cheap for Turkey, strengthening Ankara’s position in price negotiations with other supplying countries.
Currently, Turkey imports gas from Russia, Iran, and Azerbaijan. Additionally, Azerbaijani gas is transported through Turkey to Europe.
As part of the plans to create a gas hub, Turkey is preparing to import liquefied gas along with gas from Azerbaijan and Turkmenistan, before exporting this fuel to Europe. However, the current infrastructure does not support the transportation of Turkmen gas to Turkey via Azerbaijan. Consequently, Turkmenistan seeks support from the West and Azerbaijan to build the Trans-Caspian Gas Pipeline.
At present, this is not feasible: Azerbaijan’s stance is that constructing the Trans-Caspian Gas Pipeline is Turkmenistan’s responsibility, and Azerbaijan is ready to fulfill its duties as a transit country. On another note, the tripartite gas swap agreement signed between Turkmenistan, Iran, and Azerbaijan at the end of 2021 has been suspended since the beginning of this year. Ashgabat deems the price offered by Azerbaijan ($135-140 per thousand cubic meters) too low and is unwilling to supply gas at this rate. Turkmenistan argues that such a price is unfair, given that Azerbaijan buys cheap Turkmen gas to sell it in Europe at double the price.
Last year, about 2.5 billion cubic meters of Turkmen gas reached Azerbaijan through Iran under this agreement, proving beneficial for all three parties. Iran uses part of the swapped Turkmen gas to meet the gas needs of its northern regions, while the rest is transferred to Azerbaijan, generating transit fees. This arrangement allows Turkmenistan to diversify its gas exports. Media reports suggest that the prospects for reaching an agreement are slim, despite ongoing negotiations.
It was also revealed that Turkmenistan has initiated talks to transport its gas to Turkey through Iran. However, it remains to be seen what stance Tehran will take on these negotiations. Given that Iran itself exports gas to the Turkish market, it may not be interested in facilitating the transit of cheap Turkmen gas through its territory.
From this perspective, it is questionable whether the Ankara negotiations truly concerned the transit of Turkmen gas to Turkey via Azerbaijan. It is likely that the discussions focused on supplying blue fuel to Turkey through Iran.
