The President of Iran and Turkmenistan have officially opened the gas pipeline running between their countries - the first of its kind and the first ever energy route out of the Caspian region that bypasses Russia. President Khatami flew in from Iran to Balkanebit, in the Turkmen desert, to turn on the ceremonial gas tap alongside President Niyazov. Our Central Asia correspondent, Monica Whitlock, is in Balkanebit and sent this report:

A great roaring flame leapt out as the presidents turned on the tap against a backdrop of sand dunes. This is the most barren of landscapes, with an almost lunar feel, close to the Iranian border.

Bands played and the Turkmen laid out a feast under tents for the crowds of dignitaries flown in for what really is a memorable day.

This is the first ever energy pipeline out of the Caspian to reach the outside market without touching Russian territory.

For the Turkmen, it holds out the promise of becoming a world-class energy power at last.

For Iran, it is the first step towards becoming a hub for energy routes linking the Caspian to the East and West.

There is talk here in Turkmenistan of a much more ambitious gas line to Turkey following soon, and perhaps even an oil route from Kazakhstan.

The Balkanebit pipeline is not huge as energy projects go.

It will carry two billion cubic metres of gas per year initially, but it is already clear that the breakthrough has been political repercussions.

The pipeline has been built without the support of US-backed institutions like the World Bank because of Washington's rules against dealing with Iran.