EurasiaNet Business & Economics - Turkmenistan: Ashgabat Reveals that Gas Won't Start Flowing to China in 2009

BUSINESS & ECONOMICS

TURKMENISTAN: ASHGABAT REVEALS THAT GAS WON’T START FLOWING TO CHINA IN 2009
1/05/09

Turkmenistan has postponed start date for exporting natural gas to China. At the same time, Ashgabat reported that work on a 7,000-kilometer transnational pipeline was proceeding at "full speed."

When Turkmen and Chinese officials signed an export deal in 2006, Ashgabat pledged that it would begin exporting 30 billion meters of natural gas per year to China starting in 2009. However, the Turkmen government’s press service issued a vaguely worded statement on January 3 stating that "Turkmenistan will begin to deliver its natural gas to China in years to come."

The statement contained some good news; work on related gas exploration projects have reportedly been completed, and work on the export route is continuing.

Construction on the 188-kilometer Turkmen section began in August 2007 and is being carried out by Gazprom subsidiary, Stroytrangaz. Construction of the 525-kilometer Uzbek section began in June 2008; and work on the 4,860-kilometer Kazakh section began in July 2008. The China National Petroleum Corporation (CNPC) partnered with Uzbekneftegas and Kazmunaigaz respectively to finance the project, and Uzbek and Kazakh gas will also likely feed China’s growing demands for energy. The pipeline is expected to cost in excess of $7.3 billion when completed.

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