Caspian Report - Issue: 07 - Spring 2014

Prime Minister
of Turkey Recep
Tayyip Erdogan
and President of
Azerbaijan Ilham
Aliyev after a
meeting during
Aliyev’s official visit
to Turkey in 2013.
struction of the Trans Caspian Pipeline
(TCP) it can join the Southern
Gas Corridor and sell its natural
gas directly to Europe and Turkey.
Currently, Iran buys Turkmen gas
fairly cheaply, and then sells it on
at a more expensive price to Turkey,
which is damaging to Turkey’s
energy bill. Through the TCP, more
than 30 bcm/a natural gas can be
transported to Europe and Turkey,
of which 16 bcm/a would remain in
Turkey. But there have been no tangible
steps toward the realisation of
this project. Though it is associated
directly with the legal status of the
Caspian Sea, the pipeline can be realised
if it becomes political feasible
and the parties can reach agreement.
gas to Turkey and Europe through
Azerbaijan. To do this, Kazakhstan
has numerous options. First, it can
lay pipeline from Aktau port to Baku
beneath the sea and join the South
Caucasus Pipeline in Baku. Or, it can
construct overland pipeline from Kazakhstan
to the Turkmenbashi port
and join the planned Trans Caspian
Pipeline. Third, it could export its
reserves as Liquefied Natural Gas
(LNG) and Compressed Natural Gas
(CNG).
Kazakhstan holds 3 trillion cubic meters
of proven and 5-6 trillion cubic metres of
potential natural gas reserves.
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CASPIAN REPORT, SPRING 2014
Kazakhstan: Kazakhstan holds 3
trillion cubic meters of proven and
5-6 trillion cubic metres of potential
natural gas reserves. It is estimated
that Kazakhstan can produce 75
bcm/a natural gas in the midterm,
of which 40 bcm/a can be exported.
Thus, Kazakhstan can sell its natural
In addition to the above mentioned
resources, natural gas flow can also
be imported from Uzbekistan and
Iran if political conditions improve
in both countries. However, in order
to utilize its geostrategic advantage
and become an energy hub, Turkey
needs to take several steps.