For Turkmenistan the year 2008 was marked with many events of long-term international significance. These events include launching the unprecedented project on construction of the Turkmenistan-China gas pipeline called rightfully the XXI-century project.

The total length of the longest pipeline in the world starting on the right banks of the Amu Darya River is 7,000 km. Of them 525 km will be constructed on the territory of Uzbekistan, 1,293 km – on the territory of Kazakhstan and 4,860 km – on the territory of China – the town of Guangzhou from where natural gas will be distributed to the existing branches.

The survey work and the construction documentation were completed in compliance with a schedule. The construction work is in full swing on the Turkmen sector of the largest transnational gas main which will start to supply natural gas to the People’s Republic of China in the near future.

According to the Turkmengaz State Concern – the contractor for the construction of the 188-km Malay-Bagtyyarlyk gas pipeline the work is carried on three sections – the right and left banks and the passage across the Amu Darya River. In compliance with the Turkmen partners’ terms of selling gas exceptionally on its border the end point of this pipeline is on the Turkmen-Uzbek border. In accordance with the Resolution of the President of Turkmenistan the general contractor of the project is famous Russian company Stroytransgaz – the winner of the international tender. Under the project amounted to over 395 million euros on the construction of the gas pipeline with the passing-pipe size of 1,420 mm across the Amu Darya River the gage units and gas drier are to be constructed and Belgian ENEX is to build a compressor station .

In accordance with the General Intergovernmental Agreement on the implementation of the gas pipeline project signed in April 2006 Turkmenistan is to supply up to 30 billion cubic metres of natural gas to China each year. The huge hydrocarbon reserves certified by the independent experts as an additional guarantee of Turkmenistan’s competence as one of the largest and reliable fuel exporters will allow increasing supplies up to 40 million cubic metres.

At the initial stage the Turkmengaz State Concern is to supply up to 17 million cubic metres of natural gas extracted in the Malay and Uchaji fields each year. 13 billion cubic metres of natural gas extracted in the contractual territory Bagtyyarlyk is to be supplied to the transnational gas pipeline.

The long-term partner of the State Agency for Hydrocarbon Management and Use under President of Turkmenistan is the China National Petroleum Corporation (CNPC). Under the Production Share Agreement the Chinese partners have been exploring the hydrocarbon deposits in Turkmenistan and developed the relevant infrastructure for over a year.

Last year the Chinese partners started the construction of the first gas processing unit (block A) in one of the most perspective gas deposits on the right bank of the Amu Darya River – Samandepe. The unit with the annual capacity of 5 billion cubic metres will produce processed gas and solid sulphur. By the end of 2010 the second gas processing unit with the annual capacity of 8 billion cubic metres (block B) will be put into operation in Altyn Asyr field located in immediate proximity to Yashildepe.

According to the State Agency for Hydrocarbon Management and Use under President of Turkmenistan, the units will b connected by the 68-km gas pipeline with the passing-pipe size of 914 mm. Site welding was completed at the three-km section of the pipeline, pipes were laid at the 30-km section. The 10-km pipeline with the passing-pipe size of 1,067 mm will built at the section from block B to the Turkmen-Uzbek border.

Thus, the project on the construction of the transnational gas main that is of particular concern to the Governments of Turkmenistan and the People’s Republic of China for being an opportunity to intensify intergovernmental collaboration assumed the real shape. Co-operation with the well-known oil and gas companies – a guarantee of the successful implementation of this large-scale international project aimed at expanding regional co-operation as well as enhancing Turkmenistan’s reputation as the word’s energy producer endeavoring the place its huge natural and economic potential at the service of the whole mankind.

The new energy policy pursued by President Gurbanguly Berdimuhamedov clearly set the priorities of further development of the fuel and energy industry and the particular steps towards the country’s integration in the global energy system. In this context particular importance is attached to development of the fuel and energy pipeline and industrial infrastructure, exploration of the abundant hydrocarbon resources proved by the international interdependent audit. The ultimate goal is to diversify the gas export routes to international markets. In this regard the UN Resolution on the Reliable and Stable Transit of Energy and Its Role in Ensuring the Sustainable Development and International Cooperation approved on the initiative of the President of Turkmenistan is of paramount significance. The Turkmen leader’s idea supported by the world community testified to Turkmenistan’s increasing prestige on the world arena, recognition of its policy as a constructive factor of the international relations, as a considerable component of global energy security.