Turkmenistan cannot sell more gas despite new finds

Subject

Turkmenistan's oil and gas prospects.

Significance

Turkmenistan has among the largest global gas reserves and recently reported a promising new find, but its limited export options and low gas revenues have led to economic crisis. The government has responded with energy industry personnel changes, spending cuts and a bid to attract more foreign investment.

Impacts

• Shortages of goods and cash may lead to more local protests, which have so far been rare in this repressive state.
• The standard response of blaming sacking officials is looking less and less adequate.
• Turkmenistan may examine ways of getting gas across the Caspian Sea without building a full pipeline.