BAKU, Azerbaijan, October 10. Kazakhstan and Turkmenistan could expand energy exports through new pipelines across the Caspian Sea, connecting Kazakh oil and Turkmen gas to international markets via Azerbaijan.
This was reflected in a publication issued by Wood Mackenzie yesterday, titled “Unleashing the Caspian’s potential in oil, gas and critical minerals.”
The article proposes building new Trans-Caspian pipelines to transport Kazakh oil and Turkmen gas to existing export infrastructure in Azerbaijan, opening access to Mediterranean and European markets.
Kazakhstan currently produces 2.2 million barrels per day of liquid hydrocarbons, with more than 1.5 million barrels per day exported through the Caspian Pipeline Consortium (CPC) system to a terminal near Novorossiysk on Russia’s Black Sea coast. However, exports have faced serious disruptions linked to attacks on pipeline and port infrastructure amid the Russia-Ukraine war, the article says.
The report also notes that Kazakhstan could increase its export volumes by more than 200,000 barrels per day if the next phase of the giant Kashagan oil field development proceeds.
Turkmenistan, meanwhile, exports around 34 billion cubic meters of natural gas annually to China, while the development of alternative export routes could open additional markets for its vast gas reserves, including those of the Galkynysh field, which Wood Mackenzie describes as the world’s second-largest.
“Filling in the missing links, cross-Caspian oil and gas pipelines, would complete the ‘Middle Corridor,’ a new Silk Road for molecules,” the article states.
According to Wood Mackenzie, the proposed infrastructure could give Kazakhstan and Turkmenistan greater flexibility in choosing export destinations and support further investment in their natural resources. It could also strengthen energy supply security for importing countries.
However, the authors caution that the concept faces significant challenges, including the need to secure agreement among regional governments, determine whether European buyers are willing to commit to long-term gas contracts, and establish how large-scale cross-border infrastructure would be financed.
