The signing of a convention on the legal status of the Caspian Sea is a “landmark event” for Iran, Azerbaijan, Russia, Kazakhstan and Turkmenistan, but “the immediate impact on energy projects in the region is likely to be limited,” according to Camilla Hagelund, principal central Asia analyst at Verisk Maplecroft.
“Verisk Maplecroft does not expect notable progress on a trans-Caspian gas pipeline to be forthcoming,” Hagelund said in a statement sent to Rigzone.
“The convention clarifies that pipelines are an issue for bilateral negotiation between the countries whose territory it crosses. However, a parallel environmental pact implies that other littoral states can object to infrastructure projects on environmental grounds,” Hagelund added.
“Clarification on the lawfulness of pipeline construction only serves to bring the commercial challenges of the project into the spotlight,” the Verisk Maplecroft representative continued.
Reuters reported Friday that Iran, Azerbaijan, Russia, Kazakhstan and Turkmenistan, which border the Caspian Sea, will adopt a convention on its legal status on Sunday August 12, citing a Kremlin statement.