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Turkmengaz wants major loan from China

Oil&Gas Materials 13 August 2010 15:47 (UTC +04:00)

Turkmenistan, Ashgabat, August 13 / Trend H. Hasanov /

Turkmen President Gurbanguly Berdimuhammadov instructed energy industry leaders today to hold "fruitful negotiations with the Chinese State Development Bank to receive a favorable loan worth $4.1 billion," the Neutralniy Turkmenistan newspaper reported.

The loan will go toward developing the South Eloten Field.

The field's gas resources are estimated at 4-14 trillion cubic meters of gas.

Ashgabat recently increased the projection to 16 trillion cubic meters.

The Turkmen government received the same loan over a year ago.

The Chinese State Development Bank allocated a loan worth $4 billion to Turkmengaz.

The signing ceremony took place during Chinese Vice Prime Minister Li Keqiang's visit to Turkmenistan.

The two countries are bound by a common gas pipeline project, which is under construction in Uzbekistan and Kazakhstan.

Gas transportation through the pipeline with a capacity of roughly 30-40 billion cubic meters per year began in late 2009. Its initial capacity will be about 5 billion cubic meters. Since early this year, over 2 billion cubic meters have already been transported.

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