China National Petroleum Corporation (CNPC) has secured the engineering project for the fourth phase of development at Gazli, one of the world's largest natural gas fields in Turkmenistan.

Turkmenistan, a desert-dominated country with a population of about 7 million, possesses the fourth-largest natural gas reserves in the world. However, its gas exports have long been constrained due to a lack of pipeline infrastructure. The majority of Turkmenistan’s exported gas is sold to China.

A subsidiary of China National Petroleum Corporation (CNPC) has won the contract aimed at increasing the annual output of the Gazli field by an additional 10 billion cubic meters.

According to the official Turkmen newspaper Altyn Asyr, President Serdar Berdimuhamedov recently authorized TurkmenGaz, the state-owned natural gas company, to sign an EPC (Engineering, Procurement, Construction) contract with CNPC Amu Darya Petroleum, a subsidiary of CNPC, for developing new wells and constructing gas processing facilities at the Gazli field.

This move prioritizes the fourth-phase development of this giant gas field over the larger second- and third-phase projects, as Turkmenistan seeks to accelerate the expansion of its export capacity.

TurkmenGaz will fully fund the EPC contract, and the signing marks the final hurdle for advancing this project.

Turkmenistan is a significant natural gas exporter. According to World Bank data, as of 2024, the country’s proven natural gas reserves rank fourth globally. The World Bank notes that revenues from the country’s oil and gas sector have driven economic growth, enabling this Central Asian nation to join the ranks of upper-middle-income countries.

The Gazli field was discovered in 2006 and is Turkmenistan’s largest gas field, with estimated geological reserves of 27 trillion cubic meters. The first production phase, invested in and managed by CNPC, commenced in September 2013.

In October 2024, Turkmenistan signed a long-term agreement with Iraq to supply up to 10 billion cubic meters of natural gas annually—a new deal following existing long-term supply agreements with China and Iran.

As there is no direct natural gas pipeline between Turkmenistan and Iraq, the agreement introduces Iran as an intermediary: Iran will import gas from Turkmenistan and export it to Iraq through its own gas network.

Irina Luryeva, Director of the Laboratory at the TurkmenGaz Gas Research Institute, stated at an industry conference held in Ashgabat last year that the fourth-phase development zone at the Gazli field adjoins the first-phase development area.

The allocated area for this phase is significantly smaller compared to the regions assigned for the second- and third-phase developments.

Luryeva said that, as of October, the average daily output of the 52 wells in Phase I had reached 1.5 million cubic meters. She added that seven development wells were currently idle, awaiting connection to the field’s gas network, while eight others were undergoing development drilling.

CNPC currently operates the first-phase project at the Gazli field. Due to high-productivity wells, Phase I quickly achieved a stable annual output exceeding 30 billion cubic meters shortly after commissioning in 2013.

Insufficient gas pipeline export capacity has hindered CNPC and TurkmenGaz from reaching a similar agreement on the second-phase development project. It has also impeded Turkmenistan’s efforts to partner with Abu Dhabi National Oil Company (ADNOC) for the third-phase development of the Gazli field.

Since the launch of the gas export pipeline from Ashgabat to China in 2009, Turkmenistan has been working to finalize terms for building the fourth segment (Segment D) of the Turkmenistan-Uzbekistan-Kazakhstan-China Gas Pipeline.

The Central Asia–China Gas Pipeline became operational in 2009, initially with an annual capacity of 40 billion cubic meters, of which approximately 10 billion cubic meters come from Uzbekistan and Kazakhstan.

Although the second-phase development of the Gazli field—capable of transporting 30 billion cubic meters annually—is closely tied to the expansion of the Turkmenistan–China pipeline, Ashgabat hopes the third-phase project, with an annual capacity of 33 billion cubic meters, can supply gas to another long-planned initiative—the Turkmenistan–Afghanistan–Pakistan–India Gas Pipeline (TAPI).

The TAPI pipeline’s annual capacity will be equivalent to the output of the third-phase Gazli development.

Despite the TAPI pipeline project still lacking approval from all involved nations, Ashgabat has already funded construction of the first section of the pipeline from Gazli to the Turkmenistan–Afghanistan border.

In 2024, work began on the next section of the pipeline leading into Afghanistan.

Source: upstreamonline

Original article: toutiao.com/article/1860925917580300/

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