China and Turkmenistan at odds over gas exports

There is a gap between political rhetoric and economic reality: Turkmenistan and China present contradictory figures on joint gas deals. This raises questions about the actual dynamics of the energy partnership. In an interview with the Chinese state broadcaster CGTN at the end of March, Turkmenistan's head of state Gurbanguly Berdimuhamedow emphasized the "centuries-old relations" between the two countries. At the same time, he cited concrete figures: According to these, Turkmenistan exports around 40 billion cubic meters of natural gas to China every year. An increase to 65 billion cubic meters is even planned in the future. However, this statement contradicts information from Beijing. The Chinese ambassador in Ashgabat, Ji Shumin, explained a few days later that exports in 2025 should only be around 30 billion cubic meters - with no short-term increase. Pipeline as a bottleneck The reason for the discrepancy apparently lies in the infrastructure. An increase in supply volumes would only be possible with the planned "Line D" pipeline. Although the project was launched back in 2014, it has been plagued by delays and disputes for years. There are currently no clear indications that construction work will be resumed in the near future. The existing pipelines A, B and C have a total capacity of around 55 billion cubic meters per year. However, statements from China indicate that even this capacity is not currently being fully utilized. The energy sector is of key importance for Turkmenistan: gas exports account for the majority of bilateral trade with China. The country is also one of the few states in Central Asia with a trade surplus with the People's Republic. Dependence is growing - prospects remain unclear The contradictory figures underline a fundamental problem: Turkmenistan is heavily dependent on the Chinese market, while China is strategically diversifying its energy relations. At the same time, Beijing is intensifying its economic presence in the region. In Kazakhstan, a Chinese company is expanding tungsten mining, while energy and raw materials projects are increasingly geared towards Chinese customers. Negotiations are also underway in the oil sector to expand transit to China. In Kyrgyzstan, the government is trying to improve access to the Chinese food market, but is still encountering regulatory hurdles. At the same time, economic cooperation is growing in areas such as infrastructure and disaster prevention. Uzbekistan, on the other hand, is benefiting from a sharp increase in Chinese tourists, while Chinese e-commerce companies continue to face regulatory difficulties. The developments show: China is continuing to expand its economic role in Central Asia - but in the energy sector, key projects and promises are falling short of expectations. The post China and Turkmenistan disagree on gas exports appeared first on ostwirtschaft.de.