South Korea joins race for Turkmen gas

By Marat Gurt

ASHGABAT, May 16 (Reuters) - South Korea, dependant on energy imports, told Turkmenistan on Friday it wanted to step up cooperation with Asia's top gas producer in developing its fields and building new pipelines.

Turkmenistan is emerging from decades of isolation and finds itself ardently courted by Russia, China and western Europe as an energy supplier.

Joining the race, South Korean Prime Minister Han Seung-soo visited the ex-Soviet state on Friday.

"South Korea needs energy resources for its economic development," Han said.

"I am convinced that Korean companies will continue raising their investment (in Turkmenistan)," Han, accompanied by more than 100 executives from South Korean companies, told Turkmen President Kurbanguly Berdymukhamedov during their talks.

A Turkmen source told Reuters on the sidelines of Han's visit that a gas pipeline to China pipeline, due to come online next year, may be extended to South Korea and Japan at a later stage.

During his talks with the Turkmen leader, Han signed a memorandum of understanding to expand cooperation in the energy, transport, shipbuilding, textile and other sectors.

Turkmenistan, at a crossroads after being largely cut off under Soviet and then autocratic rule until late 2006, is weighing up its diplomatic options as it opens up to the outside world.