China secures landmark deal to buy 40 billion cubic meters of Turkmen natural gas annually
By APThursday, June 25, 2009
China, Turkmenistan seal long-term energy deal
ASHGABAT, Turkmenistan — China has secured a long-term deal to buy 40 billion cubic meters of natural gas annually from energy-rich Turkmenistan.
State newspaper Neutral Turkmenistan reported Thursday the two countries have agreed on the binding details of a 30-year contract to increase China’s annual gas purchases from the previously agreed amount of 30 billion cubic meters, starting in 2010.
The agreement marks a success in China’s efforts to secure long-term energy supplies and loosens Russia’s grip over Central Asian gas reserves.
Gas deliveries are to start when a pipeline from Turkmenistan to China is ready. Completion of the 7,000-kilometer route is expected by the end of the year.
The newspaper said China has promised Turkmenistan’s gas company a $4 billion loan on preferential terms.
