Yet a new gas conflict

Russia-Turkmen gas conflict looms: report

MOSCOW (AFP) — A blast on the main gas pipeline between Turkmenistan and Russia reflects rising tensions between the two countries and could signal a Ukraine-style "gas war," a Russian newspaper said.
The Kommersant broadsheet pointed to growing problems between Russia and its ex-Soviet gas partner ahead of Thursday's explosion on the main gas export pipeline from the Caspian Sea state to Russia.
Russia generally sources Turkmen gas in order to boost its own reserves and help meet European demand.
"Russia could start a new gas war, but this time on the southeastern front," Kommersant said. "Russia has decided to use the same weapon as in the gas war with Ukraine," the paper added, referring to a dispute with Kiev in January.
The blast was the result of a decision by Russian gas giant Gazprom to sharply cut gas purchases from Turkmenistan -- leading to strain on the Turkmen section of the pipeline.
Kommersant said the cut amounted to 90 percent. The controversy came as Russian Foreign Minister Sergei Lavrov was in the Turkmen capital for a regional foreign ministers' meeting.
Whereas Russia in the New Year cut off supplies to Ukraine, a gas war with Turkmenistan would follow the reverse pattern with Moscow drastically scaling down its imports of Turkmen gas.
There is commercial logic to reducing the purchases as demand drops in Europe, particularly from crisis-hit Ukraine, and Kommersant said that Gazprom stood to profit from selling its own reserves.
The Vedomosti newspaper, in an article headlined "The Welcome Accident", said that Gazprom would be easily able to compensate customers with its own supplies.
"Russia is not receiving Turkmen gas because of the pipeline explosion. But that could even be advantageous for Gazprom whose production has fallen in line with demand," it said
Gas demand in Europe has fallen sharply due to the economic slowdown and as a consequence gas reservoirs are full.
Gazprom's deputy chief executive, Valery Golubev, said on Thursday that the crisis will force Gazprom to maintain a 10 percent cut in output over the next 4-5 years from its peak last year.
He said that output would reach only 492 billion cubic metres this year compared with 549.7 billion cubic metres in 2008.
But Turkmenistan had angered Russia since a notably unproductive visit by President Gurbanguly Berdymukhamedov to Moscow last month that the Kremlin hoped would strengthen its grip on Turkmen energy, the paper said.