Turkmenistan Expands Galkynysh Gas Field With $5.1 Billion Fourth Phase

Turkmenistan has renewed its focus on the $5.1 billion fourth phase of the Galkynysh gas field, with Gurbanguly Berdimuhamedov telling the Halk Maslahaty on September 23 that the expansion would increase gas production and boost the country’s export capacity. The CNPC-built project, launched in April, is expected to add ten billion cubic meters of commercial gas capacity a year. The fourth phase involves drilling production wells and building a commercial gas treatment facility. CNPC is also responsible for gas gathering and treatment systems, pipelines, and related infrastructure. Although CNPC is building the project, Turkmenistan is financing the expansion itself. In March, state-owned Türkmengaz was authorized to sign a turnkey design-and-construction contract with CNPC Amudarya Petroleum Company Ltd. Work on the fourth phase officially began on April 17. Galkynysh, in southeastern Turkmenistan, is one of the world’s largest gas fields and is central to Ashgabat’s plans to expand gas exports. China remains the main buyer of Turkmen gas, with supplies flowing through the Central Asia-China gas pipeline via Uzbekistan and Kazakhstan. Beijing imports around 30 billion cubic meters of Turkmen gas annually, so the planned additional capacity at Galkynysh would be roughly one-third of current annual supplies to China. Turkmenistan has not said how the additional ten billion cubic meters will be divided between domestic use and exports, or which export routes would carry any additional volumes. One potential outlet is TAPI, the planned Turkmenistan-Afghanistan-Pakistan-India pipeline, with a design capacity of 33 billion cubic meters per year. Construction of the 153-kilometer section from the Turkmen border toward Herat began in September 2024. By mid-September 2026, 122.3 kilometers of pipe had been welded and laid in Herat Province. As previously reported by The Times of Central Asia, construction of TAPI is advancing in Herat, while Turkmenistan is exploring supplying gas to the local Afghan market before the full pipeline reaches Pakistan and India. No timetable has been announced for extending the route beyond Herat.

Turkmenistan Gas Expansion in Caspian Advances with Petronas

Turkmenistan is expanding offshore gas development in the Caspian Sea, while increasing production at existing fields and seeking new markets for its gas. Malaysia’s state-owned Petronas has secured two new offshore blocks after nearly 30 years in the country, while UAE-based XRG has joined it in the existing Block I project. Petronas Expands in the Caspian Petronas reported in late August that it had signed agreements covering offshore Blocks 19 and 20 in the Turkmen sector of the Caspian Sea. The agreements themselves were signed in June. Turkmenistan also plans geological surveys at four additional blocks — 11, 12, 13, and 14. The size of their reserves, future investment, and potential production timelines have not been disclosed. Petronas is Malaysia’s national oil and gas company and one of the largest foreign investors in Turkmenistan’s energy sector. It entered the country in 1996 and has since developed a group of offshore fields known as Block I. Over three decades, five offshore platforms have been built and around 40 exploration, appraisal, and production wells drilled in the area. According to Turkmenistan’s state oil company Türkmennebit, operations have produced more than 44 billion cubic meters of gas and 16 million tons of liquid hydrocarbons. In 2025, XRG joined the project. The international energy investment company was established by ADNOC, the state-owned oil and gas group of Abu Dhabi. Petronas retained operatorship and a 57% interest, XRG acquired 38%, and the remaining 5% is held by Turkmenistan’s state-owned Hazarnebit. The gas produced by the project is sold to state-owned Türkmengaz, which controls the country’s gas sector. The offshore fields currently produce around 11.3 million cubic meters of gas per day, while their resource base is estimated at around 200 billion cubic meters. A new well began producing at the Magtymguly field in August. The well produced more than 1.3 million cubic meters of gas and around 130 tons of gas condensate per day. Galkynysh and China The Caspian projects account for only part of Turkmenistan’s gas industry. Much larger volumes are produced in the east of the country, home to Galkynysh, one of the world’s largest natural gas fields. In April, Turkmenistan launched another stage of the field’s development with CNPC, China’s state-owned oil and gas company. The project, worth around $5.1 billion, is expected to add another 10 billion cubic meters a year to Galkynysh’s production capacity. The two projects reflect different strands of Turkmenistan’s gas strategy. China remains the main buyer of Turkmen gas, receiving around 30 billion cubic meters annually through the Central Asia-China gas pipeline. In the Caspian Sea, meanwhile, Turkmenistan is attracting capital and technology from Malaysian and Emirati companies. Seeking New Export Routes As production expands, Ashgabat is also trying to diversify its export markets. Most of the country’s gas export infrastructure is currently oriented toward China, prompting Turkmenistan to spend years exploring alternative routes. One is TAPI, the planned gas pipeline running through Afghanistan toward Pakistan and India. In recent months, work has advanced most actively on...