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Central Asia talks to focus on Nabucco line, Hungarian PM says

Oil & Gas Journal

Turkmenistan is considered a potential gas supplier for the Western-backed Nabucco pipeline project designed to bypass Russia and transport 30 billion cu m/year of gas from Central Asia to Europe via Azerbaijan, Turkey, Bulgaria, Romania, Hungary, and Austria.

In March, however, Gazprom committed to start paying European prices for gas from Central Asia by next year. According to Stern, that means Gazprom could start paying around $250/1,000 cu m of gas, leaving Central Asian states with less incentive to sell to Europe or, for that matter, China.

Ahead of Medvedev's visit, Russian officials agreed with that assessment.

"After gradual transition to world prices, which are inevitable, the issue of orienting these [gas] flows to other countries will be taken off the agenda. If Turkmenistan raises the price, the profitability of gas supplies to Russia or through Russia increases," said Sergei Prikhodko, aide to the Russian president.

Contact Eric Watkins at hippalus@yahoo.com.