The Time Is Now for a Trans-Caspian Pipeline
A Caspian Interconnector
Building an interconnector between two off shore gas fields in the Caspian Sea—Azerbaijan's Azeri Chirag Gunsehli and Turkmenistan's Banka Livanova—would cost about one-third as much as building a the subsequent larger Trans-Caspian Pipeline. Additionally, it would help build trust between the two nations and the many potential stakeholders in Europe, and would be less likely to draw objections.
- China has the upper hand when it comes to tapping into Central Asia’s vast energy resources. This could change, but only if the West decides to act. ‡
Today, the only thing that keeps natural gas from traveling from Central Asia to the heart of Europe is a 42 nautical mile gap between two existing gas fields in the Caspian Sea. That gap should be closed. There’s no better time than now. ‡
Starting the Trans-Caspian Pipeline now would mean lower construction costs and higher returns when energy prices rebound. ‡
An inter-connector would be a quick, tangible, and affordable “proof of concept” to demonstrate that the eastern side of the Caspian can be connected to the western side of the Caspian to deliver natural gas. ‡
The low price of crude oil should be seen as an opportunity, not a discouragement. When crude oil prices are low, construction and contracting costs tend to also be low for energy projects. ‡