CDB provides $4 billion loan for Phase 1 of Galkynysh Gas Field and Turkmenistan Section of Central Asia Natural Gas Pipeline Construction Project (Linked to Record ID#41905, 54489, 91923, 39997, 91926, 91901, 91917, 54528 #91898, 39955, 70616)

📋 Staff Comments

1. This project is also known as the South Yolotan–Osman Field Project and the Ioujno-Elotenshoie Gas Field Project. The Russian project title is Газовое месторождение Галкыныш.
2. Some sources refer to a supplementary agreement covering CNPC's exploration and production activities at Bagitiyarlik, where the company had a license to produce up to 30 Bcm/year, and a separate contract through which Turkmengaz agreed to deliver 10 Bcm/year to CNPC.
3. The price at which the natural gas was sold to PetroChina in unknown. This issue warrants further investigation.
4. Some sources suggest that the CDB loan for Phase 1 was worth $3 billion rather than $4 billion. However, the official annual reports from the State Bank for Foreign Economic Affairs cites the value ar $4bn in 2009.
5. Some sources (e.g. https://www.yicai.com/news/2987178.html and http://paper.people.com.cn/zgnyb/html/2013-09/09/content_1295847.htm) suggest that the CDB loan for Phase 2 was issued in September 2013 rather than April 2011. Official Annual Report for 2011 mentions the loan agreement in 2011 at $4.1bn (p. 8). This issue warrants further investigation.
6. The 2009 CDB loan's interest rate (4.8426%) and the 2011 CDB loan's interest rate (4.8855%) are drawn from the World Bank's Debtor Reporting System (see https://www.dropbox.com/s/ab8qt4n6jijcbhd/IDS_Average%20interest%20on%20new%20external%20debt%20commitments.xlsx?dl=0).
7. The April 2006 intergovernmental framework agreement between the Government of Turkmenistan and the Chinese Government regard the Central Asia (Turkmenistan-China) Natural Gas Pipeline Construction Project can be accessed in its entirety via https://drive.google.com/file/d/1QN6NDEerebTPViLbWdQKtMp9i0GhjUAR/view.
8. The construction of the China-Central Asia Gas Pipeline was financed through a series of Chinese loans and equity investments: a $7.5 billion syndicated CDB/BoC loan for Kazakh Section of Lines A and B (captured via Project ID#54489, #91923); a $4.7 billion syndicated CDB/BoC loan for the Kazakh Section of Line C (captured via Project ID#39997, #91926); a $3.5 billion syndicated CDB/BoC loan for the Uzbek Sections of Lines A and B (captured via Project ID#91901, #91917); a $1.4 billion syndicated CDB/BoC loan for the Uzbek Section of Line C (captured via Project ID#54528 #91898); a $300 million CNPC Finance loan for Line D (captured via Project ID#39955); a $300 million equity investment from Trans-Asia Gas Pipeline Company Limited for Line D of the Central Asia-China Gas Pipeline Project (captured via Project ID#70616); and a $4 billion CDB loan for the Turkmenistan Section of Central Asia Natural Gas Pipeline Construction Project (captured via Project ID#40393).
9. The Central Asia-China Gas Pipeline—also known as the Turkmenistan-China Gas Pipeline or the Asia Gas Pipeline—is a 1,873-kilometer long gas pipeline connecting Turkmenistan to China via Uzbekistan and Kazakhstan, which delivers gas equal to approximately 20% of China’s annual natural gas consumption. It consists of 4 lines (A, B, C, and D). Lines A, B, and C run parallel to each other. These three pipelines begin at Gedaim on the Turkmen-Uzbek border, run through central Uzbekistan and southern Kazakhstan, and end at Khorgas in China's Xinjiang Uyghur Autonomous Region. Roughly 188 kilometers of Lines A-C are in Turkmenistan, roughly 529 (or 530) kilometers of Lines A-C are in Kazakhstan, and roughly 1115 (or 1300) kilometers of of Lines A-C run from Kazakhstan to China. Line D, which is still under construction, will be 966 kilometers in length and connect Galkynysh to western China via Kyrgyzstan and Tajikistan. It will originate at the Galkynysh gas field in Turkmenistan.

📚 Sources & References

• China Reportedly Agrees to US$4-bil. Gas Loan to Turkmenistan
• China
• Turkmenistan ink loan-for-gas deals; China to lend $4 billion to Ashgabat, to get 40 Bcm/year of gas
• Turkmenistan
• China ink 40 Bcm/year gas supply deal, $4 bil loan, 《金融时报》：给“走出去”一双金融之翼——国家开发银行国际合作业务发展纪实
• 国开行“以贷款换资源”成功运作一批大项目
• China invests USD1 billion into Turkmen gas fields development
• Industry News - China Agrees US$3bn Turkmen Loan And Eyes Acquisitions
• 南约洛坦百亿立方米产能项目投产
• 中国石油承建的复兴气田南约洛坦项目竣工投产
• 中亚天然气出口途径
• 中亚产气国努力开拓中国新市场
• 土库曼斯坦已成为欧洲天然气项目的关键因素
• China asserts clout in Central Asia with huge Turkmen gas project
• China to support further development of Turkmenistan's largest gas field
• China to provide new loan to Turkmenistan for Galkinish gas field
• Turkmenistan
• China Reach New Energy Deals
• China's Global Energy Finance
• Central Asian and Caspian Gas Production and the Constraints on Export
• Testimony before the U.S.-China Economic and Security Review Commission Looking West: China and Central Asia
• China Striving to Boost Energy Imports from Turkmenistan
• Central Asia in a Reconnecting Eurasia
• 中国将从土库曼斯坦购买更多能源
• Galkynysh Gas Field, 《人民日报》：新疆：金融合作激发“丝路经济带”活力
• Turkmenistan Emerges into the World Of China’s Belt and Road Initiative, c2019
• 土库曼斯坦2018
• 土库曼斯坦
• BU_PITCH_ENGLISH_2018
• Plunge In Oil Prices Deals Another Blow To Kazakhstan
• Turkmenistan
• Turkmenistan says China gas pipeline debt paid off
• Turkmenistan fully repaid loans from China allocated for the implementation of gas projects
• Galkynysh gas mine, Газовое месторождение Галкыныш, Президент Туркменистана дал старт строительству новых скважин на газовом месторождении «Галкыныш», Китайская компания пробурит 3 газовых скважины в Туркменистане, Туркменистан стремится укрепить энергетическую безопасность в Евразии – Бердымухамедов посетил газовые месторождения Галкыныш и Малай, Вице-президент PetroChina отклонился от вопроса о задолженности компании Туркменистану, Туркмения получит кредит КНР на разработку гигантского газового месторождения, Президент Туркменистана дал старт строительству новых скважин на газовом месторождении «Галкыныш»
• Turkmenistan: Lifeline D
• CNPC осуществляет промышленную разработку газового месторождения 'Галкыныш', Стартовал третий этап освоения месторождения «Галкыныш»
• Inside China
• Inc: China Development Bank’s Cross-Border Energy Deals
• The new Great Game: Central Asia struggles to balance three powers
• 中石油：土库曼斯坦2020年对华年供气可逾650亿方
• Turkmenistan fully repaid loans from China allocated for the implementation of gas projects
• The President of Turkmenistan launched the construction of new wells at the Galkynysh gas field
• Oil and gas complex of Turkmenistan: investment in infrastructure and innovation
• 土库曼斯坦总统：已还清建设天然气设施借的中国贷款
• 土库曼斯坦：已按时全额还清中国贷款，此前用于修建天然气管道
• China – Turkmenistan Intergovernmental Agreement (IGA)
• 我天然气进口再添重要保障
• 土库曼斯坦阿姆河天然气项目建设回眸
• 聚焦“一带一路”能源合作10周年⑦·走进中亚
• Central Asia–China Gas Pipeline (Line A
• Line B, and Line C)
• Turkmen State Gas Company Pays Off Its Debt to China
• Central Asia risks debt bondage with China's Belt and Road Initiative
• Turkmenistan: O debt, where is thy sting?
• China Development Bank’s oil loans Pursuing policy – and profit Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.