TURKMENISTAN-IRAN GAS PIPELINE CONSTRUCTION STARTS.

Iranian technicians have begun work on the pipeline which will connect Turkmenistan’s Korpedje gas field to Iran’s pipeline system. The 140 kilometers-long pipeline, with a throughput capacity of 8 billion cubic meters annually, is due to be completed by the end of 1997. Under an agreement signed by the two governments in July 1995, the Iranian side will build the pipeline and will cover 80 percent of the construction costs, estimated at $215 million. Turkmenistan will reimburse Iran with gas supplies through this pipeline during the first three years of its operation. Iran undertakes to buy from Turkmenistan 8 billion cubic meters of gas annually for 25 years through the same pipeline. (16)

Iran has earlier indicated that it would reexport the gas to third countries. The pipeline will thus enable Turkmenistan in effect to bring its gas via Iran to the international market, bypassing Russia’s territory and pipeline system.

CIS Integration: Not Just for Good Guys.