10 Billion USD For Turkmenistan Gas Sector

abarrelfullabarrelfull wrote on 30 Dec 2009 07:36
Tags: cnpc gas petrofac turkmenistan

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It is unusual to have such big news releases at this time of year, but this one is undoubtedly a big one.

Firms from China, South Korea and the United Arab Emirates have won $9.7 billion worth of contracts to develop Turkmenistan's largest natural gas deposit, government sources in the Central Asian state said on Tuesday.

The deal is important for a number of reasons.

  1. It unlocks massive new gas reserves
  2. It includes production, refining & infrastructure
  3. The choice of companies makes an important point about Turkmenistan's future strategy

The international pool of companies will drill and build gas plants at the South Iolotan deposit, which is ranked potentially as one of the biggest five natural gas deposits in the world.

LG International Corp and Hyundai Engineering Co are to build a gas refinery to clean the gas, removing sulphur and other impurities. Petrofac is also to build such a refinery as well as Infrastructure. CNPC gets to drill for 10 Billion M3 per year of gas. GOG, a company from UAE, also gets part of the pie.

The deal is the logical next step, following the opening of a pipeline to China earlier this month. It shows that Turkmenistan is determined to diversify its export routes for gas.

It is probably the last big news of the year, and once again we can see that the age of oil may well be changing into the age of gas.


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