On 5 January 2022, the second day of his visit to the Lebap province, President Berdimuhamedov of Turkmenistan had a meeting with the leadership of the oil and gas industry. The management of CNPC in Turkmenistan was also present in the meeting.
The president had arrived in Lebap after two days of working visit in the Mary province. The focus of the entire trip was the development of the oil and gas industry with view to play a proactive role in bolstering energy security in the Eurasian landmass.
At the meeting of 5 January 2022, the president listened to the reports by the DPM for oil and gas, the head of the state concern Turkmengaz, the head of the State Corporation Türkmengeologiýa, and the director of the Scientific Research Institute of Natural Gas of the State Concern Türkmengaz.
The reports described the exploration and development activity and the steps being taken to increase the production and processing capacity of the gas sector.
Here are some new bits of information:
- The exploration work has led to the discovery of some new deposits at the Malaý gas field and the Demirgazyk Derwüş area. To confirm the initial results, exploratory wells to the depth of 4000 meters will be drilled at the Malaý gas field and up to 3200 meters at the Demirgazyk Derwüş area. This will be done by the State Corporation Türkmengeologiýa.
- At the Bagazha (Bagaja) plant the capacity for purification and processing of gas will be increased which will lead to additional daily output of 2 million cubic meters. The Bagazha plant, built by the Canadian company Termodesign Engineering in 2006 with project cost of US $ 51 million, turns gas condensates into liquefied petroleum gas (LPG). Bagazh is the largest gas condensate field of Turkmenistan. During the first nine months of 2021, the plant produced 9713 tons of liquefied gas, exceeding the target by about 2000 tons. The production of the plant is piped to Seyidi refinery for storage and further transportation to the buyers.
After listening to the reports the president commented on the efforts of Turkmenistan to expand the production capacity to meet the energy demands in the foreign markets. He particularly underlined the cooperation with China.
Here is the relevant passage from the TDH report:
As President Gurbanguly Berdimuhamedov emphasized, colossal work has been done to diversify the export of Turkmen natural gas to world markets in a short historical period. Currently, cooperation is intensifying, and it is carried out thoughtfully and purposefully. Effective relations have been established with a number of countries of the world and large companies.
Among these partners, the head of state continued, a significant place is given to the People’s Republic of China. The cooperation established between Turkmenistan and the China National Oil and Gas Corporation in the gas sector is constructive and mutually beneficial. The jointly implemented projects over the past years serve today for the benefit of our peoples, the leader of the nation emphasized.
Taking this opportunity, President Gurbanguly Berdimuhamedov expressed heartfelt gratitude to the President of the People’s Republic of China, Mr. Xi Jinping, for his significant personal contribution to strengthening bilateral relations, in particular, to the development of cooperation between our countries in the energy sector.
The head of state also expressed gratitude to the leadership of the Chinese National Oil and Gas Corporation and its representatives operating in our country for their active work.
In the future, we will continue to develop the Turkmen-Chinese relations, which are of a strategic nature, on a long-term basis in various directions, President Gurbanguly Berdimuhamedov noted. Our goal is to use the country’s hydrocarbon resources, which are an invaluable asset, in the name of strengthening world peace, prosperous life and prosperity of peoples, the leader of the nation said.
The head of state once again drew attention to the important projects of global importance implemented in a few years to achieve the set high goals.
One of them is the Malaý gas compressor station. This facility, which is important in the supply of Turkmen natural gas to the Turkmenistan-China transnational gas pipeline, called a major project of the century, via the Malaý – Bagtyýarlyk pipeline with a length of 188 kilometers, was commissioned exactly one year ago.
Natural gas has been produced from the Malaý field in the Lebap velayat since 1986. To date, over 247 billion cubic meters of natural gas have been produced from this field with initial reserves of 358 billion 700 million cubic meters. Continuation of work on gas production here, expansion of the area, as well as exploration and discovery of gas deposits in the lower layers of the developed layers are important tasks of today.
President Gurbanguly Berdimuhamedov noted the need to accelerate work on the full-scale development of not only the Malaý field, but also other gas fields, stating that the necessary conditions for this will be created in the future.
In this regard, the leader of the nation noted that the State Concern “Türkmengaz” will have ample opportunities to implement the plan for the production of additional volumes of natural gas in our country in the coming years.
Emphasizing the great contribution of the representatives of the Chinese National Oil and Gas Corporation in Turkmenistan to the development of hydrocarbon resources, the head of state gave the floor to the General Director of the corporation’s branch in our country Chen Huailong.
Having cordially congratulated President Gurbanguly Berdimuhamedov and expressing his best wishes on the occasion of the New Year, Chen Huailong stressed that he has been working in Turkmenistan since 2003 and has witnessed the beginning of a new era of Turkmen-Chinese cooperation in the oil and gas sector.
Continuing his speech, the guest noted that on July 17, 2007, with the participation of the President of Turkmenistan and the Chairman of the PRC, the State Concern “Türkmengaz” and the corporation “CNPC” signed a Production Sharing Agreement on the contract area “Bagtyyarlyk”, where today industrial development of 29 gas fields is being carried out and production of “blue fuel” from 137 wells. It was emphasized that in 2021, about 34 billion cubic meters of natural gas was sent from Turkmenistan to China.
The commissioning of the Malaý gas compressor station, which took place in January last year, allowed the uninterrupted supply of natural gas to China during the winter heating season. Since the opening of the transnational Turkmenistan-China gas pipeline in 2009, over 320 billion cubic meters of Turkmen gas have been exported to the Celestial Empire. The results of the joint partnership aroused interest and were recognized by the world community.
Along with this, the emphasis was placed on the project of drilling three wells in the Galkynyş gas field, the implementation of which began in August last year. The guest assured that CNPC Corporation will make every effort to complete their construction this year.
As noted, CNPC and the State Concern Türkmengaz are taking all measures to implement the important agreements reached at the highest level. In this regard, the parties held a number of negotiations, which were held in a constructive manner. In the near future, a new round of negotiations will begin, and maximum efforts will be made to achieve the main goal – expanding partnership and intensifying trade in natural gas, the guest said.
It was also emphasized that January 6, 2022 marks 30 years since the establishment of diplomatic relations between Turkmenistan and the People’s Republic of China, and on July 17 – 15 years since the signing of the Production Sharing Agreement on the Bagtyýarlyk contract territory. In this context, the guest assured that the CNPC will continue to work on the implementation of the agreements reached earlier, and will also strive to deepen bilateral cooperation with Turkmenistan in the oil and gas field.
As noted, Turkmenistan possesses colossal reserves of natural gas, and China is a promising market. Therefore, the Turkmen-Chinese gas cooperation, which not only meets the interests of the two countries, but also plays an important role in ensuring sustainable development in all transit states, can be described as complementary and mutually beneficial.
In conclusion, the guest noted that in light of the growing trend towards low-carbon emissions around the world today and expectations of a significant increase in the share of natural gas in total energy consumption, Turkmenistan occupies a key place in the international energy system.
Having listened to the speech, President Gurbanguly Berdimuhamedov wished the representative of the Chinese National Oil and Gas Corporation further success in the work carried out in Turkmenistan. /// nCa, 6 January 2022