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DE RUEHAH #0973 2121228
ZNR UUUUU ZZH
P 311228Z JUL 09
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 3234
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UNCLAS ASHGABAT 000973 
 
 
SIPDIS 
 
STATE FOR SCA/CEN; EEB 
ENERGY FOR EKIMOFF/THOMPSON 
COMMERCE FOR HUEPER 
 
E.O. 12958: N/A 
TAGS: EPET PGOV EINV TX
SUBJECT: TURKMENISTAN: MFA-AUTHORED ARTICLE OUTLINES 
GOVERNMENT ENERGY POLICY 
 
REFS: A) ASHGABAT 908; B) ASHGABAT 886; C) ASHGABAT 947 
 
¶1.  SUMMARY: On July 30, state-run Neutralniy 
Turkmenistan newspaper published an article prepared by the 
Ministry of Foreign Affairs of Turkmenistan outlining the 
country's energy policy.  The article also highlighted recent 
gas-export developments in the country's energy sector and 
speculated about using energy diplomacy as a tool for 
promoting national interests and closer international 
cooperation in the energy sector.  Below is the summary of the 
most noteworthy parts of the article.  END SUMMARY. 
 
¶2.  The article, titled "The Energy Policy of 
Turkmenistan:  Many Geographic Alternatives, A Single 
Approach," began with a statement of Turkmenistan's commitment 
to diversification of its energy export routes, which is 
considered "a factor contributing to the development of 
regional economic cooperation."  The article continued with a 
description of Turkmenistan's efforts to promote the western 
direction of gas exports.  It praised the production sharing 
agreement (PSA) recently signed by the Turkmen Government with 
the German RWE Company (Ref A) and portrayed the PSA as the 
beginning of practical implementation of a westbound gas 
supply route.  The article also praised the general 
development of political and economic contacts between the EU 
and Turkmenistan and emphasized that Turkmenistan welcomes 
that development.  The "European" focus occupied about half of 
the article. 
 
¶3.  The article also reflected on the recent agreements 
reached by Turkmenistan and Iran on increased gas supplies to 
Iran and the new price formula for Turkmen gas, although 
without any mention of the exact price (Ref B). (NOTE: Iranian 
media reported this week that the new price is $170 per 
thousand cubic meters.  END NOTE.)  The article then continued 
with praise for Turkmen-China cooperation in the energy sector 
and the construction of the Turkmenistan - Uzbekistan - 
Kazakhstan - China gas pipeline.  It also noted that the two 
countries have very close positions regarding the issues 
related to ensuring reliability and security of energy 
supplies to the world market.  (NOTE: The article failed to 
mention both the existing pipeline routes leading to Russia 
and the proposed Turkmenistan - Kazakhstan - Russia gas 
pipeline project along the Caspian coast.  END NOTE.) 
 
¶4.  COMMENT: The article appeared six days after 
President Berdimuhammedov's statement regarding the Turkmen 
Government's intention to take the Turkmen-Azeri Caspian 
boundary dispute to an international court of arbitration (Ref 
C).  That statement triggered speculation in international 
media that an escalation of the Turkmen-Azeri dispute could 
jeopardize Western-backed projects aimed at transporting 
Turkmen gas to Europe.  The article might be a sign from the 
Turkmen Government that its position regarding the Western- 
backed pipeline projects has not changed because of the 
Caspian dispute escalation and that the Turkmen Government 
still considers a Western direction for gas exports as a viable 
option.  END COMMENT. 
 
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