Ashgabat, Turkmenistan, May 10
By Huseyn Hasanov- Trend:
China National Petroleum Corporation (CNPC) started the second stage of industrial development of the Galkynysh gas field on May 8, a source close to the country's energy sector told Trend.
The second stage envisages the construction of a complex for production and processing of gas, according to the source. The gas reserves of the Galkynysh field, together with the nearby fields, are estimated at 26.2 trillion cubic meters, Turkmen media outlets reported earlier, citing the UK Gaffney, Cline & Associates company.
It is expected that the second project will be completed in 2021 and the processing capacity will be equal to 30 billion cubic meters of gas per year.
It was earlier reported that the corresponding agreement was signed in September, 2013 and it is planned to carry out the funding with the loans issued by the China State Bank.
The first stage of development of the Galkynysh field was completed in autumn of 2013, and the significant part of the expenditures was covered by China. The Turkmengas state concern, the project's general contractor, instructed the following companies to carry out a work package: CNPC Chuanqing Drilling Engineering Company Limited (China), LG International Corp and Hyundai Engineering Co., Ltd "(the Republic of Korea), Petrofac International LLC and Gulf Oil & Gas FZE (UAE).
The instructions were given in accordance with around $10 billion worth contract signed in 2009.
Two facilities for producing 30 billion cubic meters of marketable gas per year were constructed after the completion of the first stage at the Galkynysh field. These facilities can also serve as supply sources both via the traditional routes and new gas pipeline projects, including Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline.
Turkmenistan plays a key role in the energy market of the Caspian Sea region. The country produces around 70-80 billion cubic meters of gas per year and exports it to Russia and Iran. A route for supplying gas to China was opened in 2009.
Translated by L.Z.