After the recent unexplained explosion of a gas pipeline between Russia and Turkmenistan, each side has been accusing the other of blowing it up. After all the words exchanged, Turkmenistan has taken action by signing a major agreement with the German energy giant Rheinisch-Westfaelische Elektrizitaetswerk (RWE).
RWE now has the right to explore and develop gas resources on Turkmenistan’s continental shelf in the Caspian Sea. They have been given one ‘Bloc’ so far, with more to be assigned in the future. Obviously, this is reviving hopes that a Trans-Caspian pipeline will be built. No Western company has on-shore gas rights in Turkmenistan, but RWE will likely have first dibs. The company is Germany’s largest energy producer and supplier overall (nuclear, natural gas, electricity) and second-largest natural gas supplier in the country. RWE is also a part of the Nabucco project and to that end, they opened an office in Azerbaijan recently. Azerbaijan is still angry at Russia for backing Armenia in their war and providing arms to their enemy. Hopefully the recent fall-out between Azerbaijan and Turkey over fully normalizing those relations will be settled and the whole region can benefit from more diversified transit routes and sources. Because everyone knows that happiness is multiple pipelines.
