Caspian Gas Pipeline Moves Step Closer

Russia, Turkmenistan and Kazakhstan are to sign a deal today to build a pipeline allowing Russia to keep Central Asian gas flows to the West under its control, writes Reuters.

The intergovernmental agreement to build the Caspian Gas Pipeline taking Turkmen gas to Russia will be signed by Russian and Kazakh presidents Vladimir Putin and Nursultan Nazarbayev, a Russian government source told the news service.

State controlled energy giant Gazprom, which will control the project, currently buys around 50 billion cubic metres of Turkmen gas a year, as well as volumes from Kazakhstan for re-export to the Ukraine and the West.

The intergovernmental agreement, initially planned for September, has been delayed as Moscow and Turkmenistan are believed to have disagreed on prices for existing gas supplies.

By staff writer