Turkmenistan, China reach agreement on construction of joint gas pipeline branch

Oil&Gas Materials 7 February 2022 11:39 (UTC +04:00)

BAKU, Azerbaijan, February 7

By Amina Nazarli - Trend:

Turkmenistan and China have reached an agreement on the construction of fourth branch (D) of the Turkmenistan-China gas pipeline, Trend reports Turkmenportal.

The negotiations took place as part of the talks between President of Turkmenistan Gurbanguly Berdimuhamedov and his Chinese counterpart Xi Jinping in Beijing.

The cooperation committees of the two countries have been directed to carry out appropriate joint work in this direction.

Berdimuhamedov stressed that the two parties should also start negotiations on the price of natural gas to be delivered through the 4th branch of the gas pipeline.

Berdimuhamedov also noted the importance of determining the volumes of gas that will be exported to China. He emphasized the significance of examining the options for upgrading the second stage of the Galkynysh gas field, which will serve as the primary resource base for natural gas supplies to China via the fourth line (D).

Berdimuhamedov went on to say that if bilateral agreements are reached, Turkmenistan may consider involving a Chinese company in the development of the second phase of the Galkynysh field through direct Chinese investment, noting that the supply of Turkmen natural gas will carry out the return on these investments.

According to Berdimuhamedov one of the main issues is the establishment of a production and gas transportation base in Turkmenistan to ensure the supply of "blue fuel" via the 4th branch.

“I believe that in the near future our specialists will start discussing the construction of sulfur gas purification plant, compressor stations and a gas pipeline from the Galkynysh field to the border of a neighboring state,” the president said.

The previous three branches of the Central Asia-China gas pipeline include three parallel branches (A, B, and C) and run along the Turkmenistan-Uzbekistan-Kazakhstan-China route. Turkmenistan supplies the majority of China's gas supplies, which range from 35 to 40 billion cubic meters per year. Natural gas is delivered to 25 Chinese provinces and Hong Kong.

Turkmen natural gas supply to China should increase to 65 billion cubic meters per year once the fourth branch of the gas pipeline is operational in accordance with previous agreements.