China signs deal to buy more gas from Turkmenistan

Jun 21, 2009 02:00 AM

China signed a 30-year deal to increase purchases of natural gas from Turkmenistan by 30 %. No value was announced for the deal, which also marks a step forward in Chinese efforts to find long-term, stable energy supplies.
Chinese Vice Premier Li Keqiang met with his Turkmen counterpart to sign the contract, which increases gas deliveries to 40 bn cm annually.

Work on a 7,000-km pipeline from Turkmenistan to China is expected to be finished by the end of the year.
"This agreement is very important for ensuring a stable, long-term and adequate supply of gas for this pipeline," Li said at an official signing ceremony. China has also committed to lending Turkmenistan's state gas company $ 4 bn on preferential terms. China had promised to lend $ 3 bn to develop the vast South Yolotan natural gas field close to the Afghan border. An independent audit by a British company last year said the field may be one of the five largest in the world.

Li also signed an additional deal for state-owned China National Petroleum Corporation to take gas from the Bagtyyarlyk field near Turkmenistan's border with Uzbekistan. The Turkmen government believes the field holds up to 1.3 tcm of gas. CNPC was awarded the license to explore and develop the field in 2007.
Turkmenistan has long exported nearly all its gas to Russia, with the exception of a small amount sent to Iran. Some international experts have voiced doubt that Turkmenistan could meet all its supply obligations, but the government insists there is enough gas to supply all buyers.

Market Research

The International Affairs Institute (IAI) and OCP Policy Center recently launched a new book: The Future of Natural Gas. Markets and Geopolitics.

Cover_242-width

The book is an in-depth analysis of some of the fastest moving gas markets, attempting to define the trends of a resource that will have a decisive role in shaping the global economy and modelling the geopolitical dynamics in the next decades.

Some of the top scholars in the energy sector have contributed to this volume such as Gonzalo Escribano, Director Energy and Climate Change Programme, Elcano Royal Institute, Madrid, Coby van der Linde, Director Clingendael International Energy Programme, The Hague and Houda Ben Jannet Allal, General Director Observatoire Méditerranéen de l’Energie (OME), Paris.

For only €32.50 you have your own copy of The Future of Natural Gas. Markets and Geopolitics. Click here to order now!


 

Upcoming Conferences
« September 2016 »
September
MoTuWeThFrSaSu
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30

Register to announce Your Event

View All Events