China Receives 100 BCM of Central Asian Gas
China has received 100 billion cubic meters (bcm) of Central Asian since November 13, 2014.
The China National Petroleum Corporation (CNPC) has been buying natural gas from Central Asia since 2009, after launching the first two A and B branches of the pipeline from Turkmenistan through Uzbekistan and Kazakhstan. The third C branch, which also passes through this route and ends in Khorgos, China, was commissioned in May 2014.
According a report released by CNPC on November 26th, the total volume of gas delivered from Central Asia to China by A, B and C pipelines reached 100 bcm as of November 13, 2014, including 93 bcm of Turkmen gas.
CNPC says some 66.3 bcm of natural gas was supplied by Turkmengaz and 26.7 bcm from the Bagtyyarlyk contractual territory, where CNPC implements development on the basis of the Production Sharing Agreement (PSA) with Ashgabat.
Currently, China is developing the D branch as a new route, which passes through Uzbekistan, Tajikistan and Kyrgyzstan, projected to be commissioned in late 2016. The length of the D line is about 1,000 kilometers, and it goes to China through the Ulugqat County.
According to the present agreements, some 65 bcm of Turkmen natural gas will be delivered to China annually until 2020, the company said.
The growth rates of natural and associated gas production amounted to 110.1 percent in Turkmenistan in January-October 2014 compared to the same period of last year, the Turkmen Ministry of Petroleum and Mineral Resources reported on November 14th.
Turkmenistan’s gas export volume to the foreign countries for the period increased by 110.3 percent, the report said.
Turkmenistan never announces the exact volume of its gas imports and exports, but currently, Turkmenistan exports natural gas to China, Iran and Russia.
Turkmenistan, in terms of natural gas reserves ranks fourth in the world after Russia, Iran and Qatar and reportedly produces about 70 bcm gas per annum.
It is planned to increase these volumes up to 230 bcm per annum (bcma) by 2030, according to the oil and gas industry development program.
CNPC has been operating in Turkmenistan since 2002 and now has oil and gas assets and equity in the country, while also providing oilfield services.
On July 17, 2007, CNPC signed an agreement with Ashgabat to explore and develop gas fields on the right bank of the Amu Darya River, and a natural gas sale-and-purchase agreement with the Turkmen State Agency for Management and Use of Hydrocarbon Resources and Turkmengaz respectively.
In August 2007, the Amu Darya project was launched on the issuing of the exploration and development license by President Gurbanguly Berdymukhammedov.
In August 2008, CNPC and Turkmengaz signed a technical agreement on the Natural Gas Purchase and Sales and Technical Agreements to extend their cooperation in the gas exploration and development project on the Amu Darya River. Consisting of Block A and B, the project is located in Bagtyiarlyk contract area on the Right Bank of Amu Darya River in Turkmenistan.
In December 2009, the No.1 Gas Processing Plant of the Amu Darya natural gas project, which is the most technologically advanced natural gas processing plant with biggest capacity in Central Asia, became operational, with a processing capacity of 5 bcm.
On October 26, 2010, natural gas was input into Line B of the Central Asia-China Gas Pipeline, marking the operation of the dual line. In 2010, it transported 4.38 bcm of natural gas from Turkmenistan to China.
The Central Asia-China Gas Pipeline has maintained safe and steady operation since the startup of its Line A and Line B in October, 2010. In 2011, No.1, 4, and 6 compressor stations were completed and put into operation, upgrading the deliverability of the pipeline to 23 bcma.
In addition, CNPC signed agreements with Uzbekneftegaz and KazMunaiGas to build and operate Line C of the Central Asia-China Gas Pipeline, which runs in parallel to the operating Line A and B to transport gas from Turkmenistan, Uzbekistan, and Kazakhstan. After Line C is completed, the deliverability of the pipeline will be upgraded to 55 bcma.
On June 30, 2011, the natural gas coming from the Right Bank of Amu-Darya River in Turkmenistan arrived at Guangzhou City through the Second West-East Gas Pipeline. This marks the introduction of Central Asian gas to China’s energy-hungry Yangtze Delta and Pearl River Delta.
By the end of 2012, the pipeline had transported more than 44 billion cubic meters of natural gas. Construction of its Line C has already completed, which runs in parallel to Line A and Line B. The current capacity of Turkmen gas delivery from these three lines is 55 bcma.