China’s CNPC to Construct New Wells at Turkmenistan’s Galkynysh Field

BUSINESS TURKMENISTAN
China’s CNPC to Construct New Wells at Turkmenistan’s Galkynysh Field
Payment for the company's services will be carried out at the expense of the annual supply of 17 bcm of natural gas to China for three years.

China National Petroleum Corporation (CNPC) will provide services for the commissioning of new wells at the Galkynysh gas field, world's second-largest gas field located in Turkmenistan’s Mary velayat, Vice-Premier of Turkmenistan Shahym Abdrakhmanov, overseeing the country’s fuel and energy complex, reported to President Gurbanguly Berdimuhamedov during a government meeting held online on Friday.

He said the Türkmengaz (Turkmen Gas) State Concern announced an international tender for the provision of services for the construction of new wells in this field and that the China’s CNPC won the tender.

According to the CNPC’s commercial proposal, the works will last 30 months and the payment for the company's services will be carried out at the expense of the annual supply of 17 billion cubic meters of natural gas to China for three years.

Following the report, President Gurbanguly Berdimuhamedov said the works on the industrial development of new hydrocarbon fields, including the Galkynysh field that is considered as one of the world's largest in terms of natural gas reserves, should be intensified.

Outlining the importance of widespread use of modern technologies in drilling new wells and developing the Galkynysh field, which has a significant role in increasing the supply of Turkmen gas for export, President Gurbanguly Berdimuhamedov addressed a number of specific instructions to the Vice-Premier.

Turkmenistan exports natural gas to China via Central Asia-China Gas Pipeline, comprising three parallel lines – A, B, and C. The construction of an additional line D is underway. Last year, China imported over 39 billion cubic meters of natural gas through the pipeline.

China has purchased over 300 billion cubic meters of natural gas from Turkmenistan since the launch of the pipeline in 2009 and is presently the major importer of Turkmen natural gas.