Major gas projects being implemented in the Bagtyýarlyk contractual area, located on the right bank of the Amu Darya River in Lebap Province, represent one of the important areas of strategic cooperation between Turkmenistan and the People’s Republic of China in the fuel and energy sector. The work carried out by China National Petroleum Corporation (CNPC) under the Production Sharing Agreement is aimed at expanding the production capacity of the country’s gas industry, creating new jobs and developing export infrastructure.

New Production Capacity Is Being Developed in Block B

The integrated development of six fields in the western part of Block B is important for increasing the capacity of the gas industry. The project covers the Gyshtuvan, West Gyshtuvan, Gadyn, North Gadyn, East Iljik and Iljik fields.

The project’s total investment amounts to US$280 million. It предусматриes drilling 22 production wells and establishing a production system designed to extract 1.8 billion cubic metres of natural gas annually.

During construction, 22 well stations were built, along with gas gathering stations at the Iljik, East Iljik and Gyshtuvan fields. A main gas gathering station was also established at the Gadyn field.

Modern technological equipment for separating water and gas condensate has been installed at the main Gadyn station. This equipment enables the preliminary treatment of up to 5.5 million cubic metres of gas per day.

The treated gas is transported through a newly built 77-kilometre pipeline to the fifth processing train of the first gas processing plant. It is then conveyed through a 69-kilometre gas pipeline to a compressor station, where its pressure is increased. After passing through a gas metering station, the gas is directed for export.

In addition, condensate extracted as part of the project is transported through a separate 87-kilometre pipeline to a specialised stabilisation facility for further processing and sale.

Attention Is Also Given to Social Infrastructure Alongside Production

The project includes not only facilities for gas extraction and processing, but also fire stations, gas rescue stations, a water supply facility, a modern residential complex and the necessary social infrastructure.

The commissioning of the new production facilities has created approximately 200 jobs in the region. This contributes to employment in Lebap Province.

Investment Exceeds US$9 Billion

The history of developing the Bagtyýarlyk contractual area began on 17 July 2007, when the Production Sharing Agreement was signed. On 14 December 2009, the Turkmenistan–China transnational gas pipeline and the first gas processing plant were commissioned.

Since then, the total amount of direct investment channelled into the project has exceeded US$9 billion. Geological exploration identified 47 gas-bearing structures, and natural gas reserves of more than 570 billion cubic metres were confirmed.

At present, two major gas processing plants operate in the contractual area, with a combined capacity to produce 14.5 billion cubic metres of commercial gas annually. The total volume of gas extracted since the project began has exceeded 133 billion cubic metres.

These figures demonstrate the role of the Bagtyýarlyk contractual area in Turkmenistan’s gas industry and its importance in expanding the country’s export capabilities.

Training Local Specialists and Implementing Social Projects

Alongside production and infrastructure projects, particular attention is paid to training local specialists. Citizens of Turkmenistan account for more than 90 per cent of the company’s workforce. Many of them work in engineering, technical and management positions.

The project contractor is working to expand the participation of Turkmen specialists, improve their professional qualifications and train young employees. To this end, young citizens of Turkmenistan are sent to study at the China University of Petroleum.

The corporation also participates in social projects implemented in Lebap Province. These activities help combine industrial cooperation with the region’s social and economic development.

Prospects for Energy Cooperation Between Turkmenistan and China

The relationship of trust and political dialogue maintained between the two countries at the highest state level provides a solid foundation for further cooperation.

Turkmenistan and China continue to work together to implement new major projects, expand natural gas supply capacity and strengthen energy security in the region.

The activities carried out in the Bagtyýarlyk contractual area demonstrate how the efficient development of natural resources, the construction of modern production infrastructure, specialist training and the creation of new jobs are being pursued in an integrated manner.