Russia Takes Control of Turkmen (World?) Gas

Russia has signed two agreements on gas in Turkmenistan, ensuring Russian control over gas exports from the region. Russia will pay higher market prices for Turkmen gas, notes M.K. Bhadrakumar in an article for Asia Times, and that could reveal a geopolitical rather than money-making strategy. At the same time, China and Russia concluded negotiations on energy cooperation. “Suffice it to say that Gazprom's new stature as the sole buyer of Turkmen gas strengthens Russia's hands in setting the price in the world gas (and oil) market,” reports Bhadrakumar, pointing to implications for China, Europe, the US and Central Asia. The deals also signal Russia’s growing interest in establishing an energy cartel that would control pricing and production – and shrink options for Europe. Meanwhile, Turkey has offered to serve as a mediator on the US-Iran standoff, as Iran looks to supply Europe and improve relations. Russia holds more proven gas reserves than any other country, almost double that of second-place Iran, and also pursues deals in Venezuela. Bhadrakumar concludes that the “geopolitics of energy makes strange bedfellows” and predicts the era of cheap gas is about to end. – YaleGlobal