REALISING THE PROMISE - CENTRAL ASIAN GAS MARKETS

                                                                                                                                August 2007

What

Central Asia and the Caspian region are seen as important new sources of gas supply. Big questions still remain as to how these resources will be developed –whether by IOCs, NOCs or a combination of both.  As with oil, there is also the question of market access, given the inaccessibility and the political risks associated with the region.  Some gas will flow towards Turkey and Russia, and Iran is also a possible conduit; eventually direct routes to China will feature, as well as other possible routes towards other markets of the Pacific rim.  Russia remains a key player with existing pipelines and significant reserves of its own.

The WEG study (Realising the Promise – Central Asian Gas Markets) will cover developments in the Central Asian countries, Russia, the Caucasus and Iran on the supply side as well as the surrounding markets and areas through which pipelines will pass.  LNG and swap deals will be included.  The study will review technical constraints and will look at the scope for inter-regional cooperation within public/private sector frameworks.  These include identifying scope for intra-regional cooperation and private sector project finance.

Who

The study builds on last year’s WEG analysis of Caspian and Central Asian pipelines. Authors of the study will be leading analysts in the field, who worked previously with the Windsor Energy Group in producing studies such as the Central Asian pipeline study which was launched in Almaty last October.  These include John Roberts, an energy security expert with Platts, Dr Jennifer Coolidge, a regional expert adviser to the US State Department, and relevant experts from the IEA, similar bodies and governments.  The director is Stephen Nash, who directed the Windsor Energy Group’s 2006 Central Asian pipeline study and who is a former British Ambassador to Georgia.

When

A roundtable to discuss the study will be held in Almaty on 1 October, the eve of KIOGE.  It will be chaired by Lord Fraser, a former energy minister.  Leading energy executives, policy advisers, energy shipping and transportation executives, and representatives of interested governments and inter-government agencies, will be invited to join the review.  A subsequent diplomatic briefing, hosted by the Ambassador of Kazakhstan, will be held in London in November.

Sponsorship

Sponsorship for the project is being sought from banks and law firms involved in energy project finance, pipeline construction contractors and energy companies active in the region as well as relevant government agencies.  Equally we are keen to hear from those interested in purchasing the report or attending the Almaty and London briefings. Details are available from the Windsor Energy Group Secretariat. The report can be purchased for £750, and purchasers are also invited to attend the diplomatic briefings.

Windsor Energy Group

The Windsor Energy Group (WEG) brings together senior figures from the public and private sectors concerned with energy geopolitics. It produces studies and discussions which are reviewed at an annual meeting at Windsor Castle (the next will be held on 7-9 March 2008).  The Group’s co-chairs are Lord Howell, a former British energy minister and Sir Graham Boyce, the chair of Lehman Brothers’ Middle East Board and former adviser to the chairman of Shell.  To find out more about the Central Asia gas markets study please contact the WEG secretariat on info(at)meconsult.co.uk or call 020 7591 4816.