At a ceremony at Balkanebit in the Turkmen desert, the presidents of Turkmenistan and Iran have officially opened the first gas pipeline between their two countries.

It is also the first energy pipeline out of the Caspian region not to pass through Russian territory.

At a colourful ceremony that included folk dances, a brass band and children reciting poetry, Iran's Mohammad Khatami and Turkmen leader Saparmurat Niyazov mounted a podium to turn a large wheel opening the valves for the gas to flow.

The BBC Central Asia correspondent, who is in Balkanebit, says the new pipeline is a symbol that Russia no longer controls the Caspian region it has dominated for more than a century.

Our correspondent says that for Turkmenistan it holds out the promise of becoming a world-class energy power, while for Iran it is the first step towards becoming a hub for energy routes out of the Caspian with its huge oil and gas resources.

On Sunday energy ministers from Iran, Turkmenistan and Turkey signed an agreement authorising the Shell oil company to draw up plans for extending the pipeline through Turkey to Europe.

All three countries, along with several others, see themselves as key players in the rush to develop the vast oil and gas resources of the Caspian Sea basin.

The United States has opposed plans to pump natural gas from Turkmenistan through Iran. The Americans accuse Iran of sponsoring international terrorism and are concerned about Iran's influence over the Caspian resources.

But the leaders of Iran, Turkey and Turkmenistan said on Sunday they wouldn't exclude any routes.

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