A vivid example of the strategic, mutually beneficial partnership between Turkmenistan and the People’s Republic of China in the fuel and energy sector is the successful operation of the China National Petroleum Corporation (CNPC) on the right bank of the Amu Darya River in the Lebap velayat. There, large-scale industrial infrastructure projects are being implemented under a Production Sharing Agreement covering the Bagtyýarlyk Contractual Territory.
A significant milestone in expanding the gas industry’s capacity was the comprehensive development of six fields in the western part of Block B – specifically, the Kiştuwan, Gunbatar Kiştuwan, Gadyn, Demirgazyk Gadyn, Gündogar Iljik and Iljik fields. This large-scale project, involving a total investment of US$280 million, entails the drilling of 22 production wells and the creation of an extensive production system designed to extract 1.8 billion cubic meters of natural gas annually.
Construction work in the western part of Block B saw the erection of a complex of technical facilities, including 22 single-well stations and gas gathering stations at the Iljik, Gündogar Iljik and Kiştuwan fields and a main gas gathering station at the Gadyn field.
The main Gadyn station is fitted with modern, high-tech water and gas condensate separation equipment capable of pre-processing 5.5 million cubic meters of gas a day. The purified feedstock is transported via a new 77-kilometer pipeline to the fifth processing train of Gas Processing Plant No. 1, and it is then routed through a 69-kilometer gas pipeline to a booster compressor station and subsequently flows to export markets via a gas metering station.
Condensate, recovered during the process, is sent via a separate 87-kilometer pipeline to a specialized stabilization unit for further processing and sale. In addition to the core production facilities, the project comprises fire and gas-rescue stations, a water supply facility, a modern residential complex and a full range of necessary social and community infrastructure. Commissioning these facilities has created approximately 200 new jobs, making a significant contribution to local employment.
The history of the development of the Bagtyýarlyk Contract Area began on July 17, 2007, with the signing of the Production Sharing Agreement; by December 14, 2009, the historic launch of the transnational Turkmenistan-China gas pipeline and the first gas processing plant had taken place.
Over the years passed, direct investment in the project has exceeded US$9 billion. Geological exploration has identified 47 gas-bearing structures and confirmed natural gas resources totaling more than 570 billion cubic meters. Currently, two major gas processing plants operate in the area with a combined capacity of 14.5 billion cubic meters of commercial-grade gas a year, while total production since the project’s inception has surpassed 133 billion cubic meters of “blue fuel”.
Alongside production objectives, personnel training and social development are being consistently addressed. Local specialists account for over 90% of the company’s workforce, with many of them holding engineering, technical and managerial positions. The contractor regularly expands the involvement of Turkmen personnel in the project and fulfills training obligations by sending young citizens of Turkmenistan to study at the China University of Petroleum. The corporation also actively participates in social projects within the Lebap velayat.
A relationship of political trust at the highest state level serves as a solid foundation for the further expansion of the bilateral cooperation. Today, Turkmenistan and China are focused on implementing major new initiatives intended to strengthen our country’s standing as a leading supplier of “blue fuel” and to make a significant contribution to regional energy security.