In the desert expanse of Turkmenistan, Chinese engineers are hard at work on the huge Galkynysh gas field – a mega project that is deepening the landlocked Central Asian state’s already extensive ties with Beijing.
Energy-rich Turkmenistan, one of the world’s most isolated and landlocked countries, has expressed its desire to diversify its exports to Europe and the Indian subcontinent.
But it is China that is pouring money into Turkmenistan’s vast gas reserves, estimated to be the fourth largest in the world.
At the inauguration of a new phase of the Galkynysh plant in mid-April, Gurbanguly Berdymukhamedov – former president and now father of the nation – hailed the country’s important ties with Beijing.
“Our country considers China as a strategic partner,” he said at the event, to which AFP journalists were given rare access.
Berdymukhamedov landed at the ceremony in a white helicopter, where a traditional carpet was laid across the tarmac.
Standing alongside China’s Vice Premier Ding Xuexiang, dancers in the countries’ respective national colors performed a routine symbolizing the passing of gas from one to the other.
Hundreds of green Turkmen flags fluttered in the desert wind, held by women in red, purple, blue and green.
Led by the state-owned China National Petroleum Corporation (CNPC), the expansion will increase production and storage at Galkynysh, enabling more exports to China.
The country is the second largest gas field in the world, according to British energy consultancy Gaffney, Cline and Associates, behind only South Pars, shared by Iran and Qatar.
About 90 percent of Turkmenistan’s gas exports already go to China – according to some independent estimates.
Ashgabat does not publish statistics.
“Turkmenistan’s paradox is that while its proven gas reserves have increased, the country has gained the status of a gas giant, but not a comparable degree of freedom in monetizing these reserves,” said Abzal Narymbetov, an expert on the Central Asian energy sector.
“The country has a large resource base, but its export infrastructure is still very much tied to the Chinese road,” he added.
‘Strategic Vulnerability’
A former Soviet republic, Turkmenistan used to export gas exclusively to Russia until 2009, when a diplomatic spat with Moscow precipitated a swing toward Beijing.
The Central Asia-China gas pipeline, opened that year, has since delivered “about 460 billion cubic meters (bcm) of natural gas,” Berdymukhamedov said.
It wants to increase annual shipments to 65 bcm.
China, the world’s largest importer of natural gas, is a major buyer from Russia and the Middle East, but is looking to diversify its energy sources.
“For Turkmenistan, China is irreplaceable, while for China, Turkmenistan is only one of several suppliers. That is why dependence on a single market is not only a trade issue, but a matter of strategic vulnerability,” Narymbetov said.
Turkmen authorities also hope that the expanded field at Galkynysh can help it look further afield.
“In addition to the China route, Galkynysh is also being considered as a resource base for the future TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline,” an employee of state-owned Turkmengaz told AFP, speaking on condition of anonymity.
It aims to supply 33 bcm along that route, as well as increase exports to Europe via the Caspian Sea to the west of the country.
‘amplify’
At the moment, Beijing is the only viable route.
“Each new phase of Galkynysh has so far tended to reinforce the Chinese vector rather than really diversifying it,” Narymbetov said.
The already delayed TAPI road faces security challenges in Afghanistan, where it is still under construction.
And the proposed Trans-Caspian pipeline to carry Turkmen gas through the Caspian Sea and into Europe is stalling.
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There is no clear agreement on who will fund that project, or long-term gas deals that would make it financially viable.
Asked by AFP, the EU delegation in Turkmenistan said: “We leave a decision on a potential Trans-Caspian pipeline to Turkmenistan, Azerbaijan and/or other interested parties to invest financially in it.”
Domestically, the partnership with Beijing is, for now, an economic lifeline, with authorities presenting Galkynysh as a source of prosperity for the entire country.
Aga, a 22-year-old student at the oil and gas university in the capital Ashgabat, told AFP that investment in the field was creating many jobs.
“After I graduate, I would like to work there,” he said.
