China signs billion-euro contract with Turkmenistan

Turkmenistan has signed a contract worth 4.6 billion US dollars with a subsidiary of the Chinese state-owned company CNPC to develop the fourth phase of the huge Galkynysh gas field. What is striking, however, is that Beijing is not participating in the financing. Ashgabat is bearing the entire costs itself. This indicates that China is interested in the project economically, but apparently does not want to finance it as a strategic priority. Construction is scheduled to begin in 2026. Implementation is expected to take just over four years. In addition to the Galkynysh agreement, Turkmen and Chinese companies are also exploring opportunities for cooperation in other areas, including finance, agriculture, construction, transportation and communications, according to the official Turkmen news agency TDH. The TDH report did not give any details. However, another official Turkmen source revealed that China's Shaanxi Yulin Energy Group has proposed the establishment of magnesium alloy production in Turkmenistan. The Puyang Shengyuan Petrochemical Group is planning to build a plant for the production of polycarbonate, which is used in electronics and medical technology, among other things. Chinese companies are also said to have submitted a proposal to the Turkmen authorities to build a high-speed rail system. Central Asia expands corridors Cooperation with China is also intensifying at regional level. Railroad representatives and logistics companies from Kazakhstan, China, Turkey and European countries agreed on new operating conditions for the Middle Corridor. The aim is to shorten transit times across the Caspian Sea. According to InBusiness.kz, this also includes the abolition of paper-based freight tracking. There are plans for 600 container trains from China to travel through Kazakhstan this year. Central Asian states and China are also discussing the establishment of an interregional investment and trade council as well as a five-year plan for sustainable development. High-ranking diplomats from Central Asia and China recently met in Xi'an for this purpose. Kazakhstan remains an important hub In Kazakhstan, construction has begun on an investment project worth USD 587 million to expand the Khorgos International Center for Boundary Cooperation on the border with China. Khorgos has been regarded as an important logistics hub for years, but has also been criticized for allegations of corruption, smuggling and inefficiency. In the first quarter of 2026, around 85,000 vehicles were exported via the dry port of Khorgos. This corresponds to an increase of 13.1 percent compared to the same period last year. Not all vehicles remain in Kazakhstan, but the country is increasingly developing into a significant market for Chinese car manufacturers. Chinese brands are expected to reach a market share of 42% in Kazakhstan by 2026. The Chinese car manufacturer Chery signed distribution agreements with two Kazakh companies: with Orbis Auto for Lepas models and with Astana Motors for Omoda and Jaecoo. Chery had already signed a contract for Lepas models in Uzbekistan at the beginning of April. China's influence is also growing in the agricultural sector. In Kyzylorda, an important agricultural region of Kazakhstan, farmers are increasingly switching from rice to corn due to the strong demand from China. Similar changes can also be observed in other parts of the country. The national grain trader Food Contract Corp is also negotiating with Shandong Hi-Speed to increase grain deliveries to China. Chinese investors are also planning a high-tech center for the production of virus-free seed potatoes in Kazakhstan. Energy, security and education In Kyrgyzstan, the Chinese company Sinomach began construction of a renewable energy project worth USD 260 million in the Jalal-Abad region. Kyrgyzstan is also negotiating with China Energy Engineering Investment on renewable energy projects worth USD 1 billion and with Power China on other energy and infrastructure projects. Representatives of Kyrgyzstan and the Chinese province of Shandong also agreed to set up 250 production lines to strengthen small and medium-sized enterprises. However, no financial details or timetable were given. In Tajikistan, representatives of the Ministry of Interior of the autonomous region of Nagorno-Badakhshan and security officials from the Chinese district of Kashgar met to discuss cooperation. China appears to want to expand its security presence in the region. At the same time, China's Southwest University and the Tajik Institute of Botany, Plant Physiology and Genetics signed an agreement to breed new agricultural crops. In Uzbekistan, the Tashkent State Transport University and Shenzhen Polytechnic University agreed on joint bachelor's degree programs in automotive engineering and aeronautical engineering, including unmanned aerial vehicles. The post China signs billion-euro contract with Turkmenistan appeared first on ostwirtschaft.de.