China Petroleum Engineering has secured a $4.6 billion contract to expand gas infrastructure at Turkmenistan’s Galkynysh field, reinforcing Beijing’s long-term energy partnership with one of its key suppliers.
The agreement forms part of a broader deal between China National Petroleum Corporation (CNPC) and the state-owned Turkmengaz to develop the fourth phase of one of the world’s largest gas fields. The project includes the construction of gas processing facilities and the drilling of new production wells, with work scheduled to begin in 2026 and expected to last just over four years.
The expansion is intended to increase gas supplies to China, which already imports around 30 billion cubic metres annually from Turkmenistan. The new phase is expected to add a further 10 billion cubic metres per year, consolidating China’s position as the principal destination for Turkmen gas exports.
Turkmen authorities say the project will be financed from domestic resources. At the same time, overall cost estimates vary, with some assessments placing the figure at $5.1 billion, indicating that additional infrastructure or related investment may be involved.
China’s reliance on Turkmen gas has been underpinned by a pipeline network operating for more than 16 years. The system currently consists of three lines transporting more than 30 billion cubic metres each year, while a fourth line is planned to significantly expand capacity.
The Galkynysh field, located in eastern Turkmenistan, plays a central role in this partnership. It supplies a substantial share of current exports to China and is also viewed as a potential resource base for future routes towards South Asia and possibly Europe via the Caspian Sea.
Estimates of the field’s reserves highlight its global significance. Consultancy Gaffney Cline places the combined reserves of Galkynysh and nearby structures at around 27.4 trillion cubic metres, while other estimates range between 4 and 14 trillion cubic metres.
Discovered in 2006 and brought into production in 2013, the field has become a cornerstone of Turkmenistan’s energy strategy. Since shifting away from reliance on Russian export routes after 2009, the country has steadily deepened its energy relationship with China, reshaping regional gas flows.
U.S. President Donald Trump said negotiations to reopen the Strait of Hormuz are progressing and suggested an agreement with Iran could be reached “...
President Masoud Pezeshkian has defended his administration's economic performance under longstanding Western sanctions and severe wartime conditions,...
Three students and three teachers are among the dead following a school shooting in Thailand, with at least 15 injured, according to Royal Thai Police...
U.S. President Donald Trump said there was an "all-day negotiation" on Tuesday with Iran, characterising the talks positively while also threatening to hit Iran "really hard" if a deal was not reached.
Shipping traffic through the Strait of Hormuz and the Bab el-Mandeb Strait, two key maritime chokepoints in the region, decreased significantly from the previous day, according to shipping data.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 6th of August, covering the latest developments.
Kazakhstan’s main oil export corridor was disrupted by drone strikes near Russia’s Black Sea coast in July, forcing a temporary suspension of crude loadings and raising fresh concerns over the vulnerability of regional energy infrastructure to the war in Ukraine.
Ukrainian President Volodymyr Zelenskyy has dismissed the country's ambassadors to Tajikistan, Kyrgyzstan and several other countries. The removals came after a speech on Monday in which he said embassies would be judged on their effectiveness in securing weapons for Ukraine.
President Masoud Pezeshkian has defended his administration's economic performance under longstanding Western sanctions and severe wartime conditions, saying barter trade with neighbouring countries has expanded to help Iran cope with financial restrictions, according to his office.
The installation of the first fibre-optic cable across the bottom of the Caspian Sea has been completed, marking a major step in the development of a new digital corridor connecting Europe and Asia.
Saudi Arabia has warned of a growing regional security threat after a Houthi attack wounded 11 civilians in the kingdom's southern Najran province, raising fears that further coordinated strikes could follow.
A bomb planted inside a minibus has killed two people and injured 13 others in the Damascus suburb of Jaramana, adding to concerns over security in an area that has seen repeated tensions in recent months.
Pakistan’s critical minerals sector is attracting renewed interest from American companies, with investors exploring opportunities in copper, antimony and other strategic minerals as global competition intensifies to secure supplies for defence, artificial intelligence and clean energy industries.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment