China strengthens energy ties with Turkmenistan in $4.6 billion Galkynysh gas expansion

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.

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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.

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