Policy & Regulation

Trans-Caspian pipeline still facing significant hurdles

Russian agreement on the legal status of the Caspian has reinvigorated plans for the pipeline, but it is still unlikely to be built Russian agreement on the legal status of the Caspian has reinvigorated plans for the pipeline, but it is still unlikely to be built.
By Silvia Favasuli 10 July 2018 0 31669
A platform in Azerbaijan’s Caspian Shah Deniz project A platform in Azerbaijan’s Caspian Shah Deniz project. (©BP plc)

A draft agreement on the legal status of the Caspian Sea has made Turkmenistan bullish about the prospects for its long-stalled Trans-Caspian Pipeline (TCP) project. However, the country still needs to demonstrate the pipeline’s economic feasibility and to obtain final approval from its neighbours.

The TCP would be a 30 billion cubic metre per year connection to Azerbaijan, allowing Turkmenistan to export gas to Europe along the Southern Gas Corridor (SGC). The project – first proposed in 1999 – has been opposed for different reasons by...