China boosts gas imports from Turkmenistan

Russia’s stoppage since April 9 of gas imports from Turkmenistan, ostensibly due to a pipeline accident, can only strengthen Turkmenistan’s motivation to start exports to China on schedule in early 2010. With Russia demonstrating its unreliability as a gas importer (let alone supplier to others), Beijing is using this opportunity to increase the volume of its future imports of Turkmen gas beyond the volumes already agreed.
On June 24-25, Chinese Deputy Prime Minister Li Keqiang led a governmental delegation to Turkmenistan for discussions on gas and related projects. Turkmen President Gurbanguly Berdimuhamedov reaffirmed the commitment to put the Turkmenistan-China pipeline into operation by December 2009 on

Turkmen territory, with the first gas to flow at the beginning of 2010. Agreements entered into by Berdimuhamedov’s predecessor, Saparmurat Niyazov, in 2006 envisaged deliveries of 30 billion cubic meters (bcm) of Turkmen gas per year to China, starting in 2010 for a 30-year period.

The Chinese delegation, moreover, signed agreements to increase Turkmen gas deliveries from the existing contract area and possibly to dedicate new Turkmen gas fields to supplying China. Under the additional sale-and-purchase agreement just signed, Turkmengaz shall deliver another 10 bcm per year to the China National Petroleum Corporation (CNPC) during the same 30-year period, on top of the annual 30 bcm previously agreed. The 40 bcm annual figure comes close to Russia’s import of Turkmen gas and is not the final target for China. CNPC is the first foreign company to develop major onshore fields under license in Turkmenistan.

Asia Times