PetroChina is looking to start building the Line D of the Turkmenistan-China gas pipeline in 2024. This was reported on 21 December 2023 by S&P Global, in an article penned by their analyst, Cindy Liang.
It is understood that the negotiations between Turkmenistan and China are in an active stage, with both sides expecting to reach a mutually beneficial outcome.
According to the article by Ms. Liang, China imports more than 40% of its natural gas supply through pipelines and seaborne LNG, and the largest pipeline gas supply comes from the Central Asia Gas Pipeline that goes through Turkmenistan, Uzbekistan and Kazakhstan, bringing in gas production from upstream projects in all three countries.
With a length of more than 1,800 kilometers each, the CAGP comprises three sections — Line A, B and C, with a transmission capacity of 55 Bcm/year.
CAGP’s Line D takes a shorter route from Turkmenistan through southern Uzbekistan, Tajikistan and Kyrgyzstan to the western part of China’s Xinjiang province. Line D was planned to tap Turkmenistan’s Galkynysh gas reserves, which are among the world’s largest, and where projects are being funded by China Development Bank, writes Ms. Liang.
Line D has been in discussions for several years and with a capacity of around 30 Bcm/year. It could take CAGP’s total network capacity to 85 Bcm/year once it starts operation. A groundbreaking ceremony for the Tajikistan section of Line D was held on Sept. 13, 2014 and attended by President Xi Jinping and President Emomali Rahmon of Tajikistan, according to state media Xinhua News Agency.
Turkmenistan is China’s biggest pipeline gas supplier, which sent 34.09 Bcm of natural gas via the Central Asia gas pipeline in 2022, accounting for 54% of China’s total pipeline gas imports, much higher than 17.1 Bcm or 27% from Russia last year, data from S&P Global Commodity Insights showed.
On May 19, 2023, at the China-Central Asia Summit, President Xi proposed a China-Central Asia energy development partnership and called for speeding up the construction of Line D, Xinhua reported.
China’s total pipeline gas imports are estimated to be around 66.07 Bcm in 2023, up around 5% year on year, and the volume is estimated to be 74.48 Bcm in 2024, up 13% year on year, according to the latest forecast from S&P Global. /// nCa, 22 December 2023