In a dynamic tug-of-war for dominance in the lucrative Chinese natural gas market, both Russia's Gazprom and Turkmenistan have emerged as key players, each vying for a larger slice of the pie. Reports indicate a fascinating juxtaposition: while Gazprom boasts higher volumes of gas supplied to China, Turkmenistan still holds the crown in terms of export earnings, Eurasianet informs.
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Earlier Daryo reported that Ashgabat raked in an impressive $2.4 bn in income from gas exports to China during the first quarter of this year. Russia earned $2 bn from its gas sales to Beijing over the same period.
The disparity in earnings can be attributed to China's savvy negotiation tactics, which have allowed it to secure Russian gas at significantly discounted prices. The Kremlin's urgent need for liquidity, amidst efforts to sustain its military campaign in Ukraine, has left Russia in a weakened bargaining position vis-à-vis Beijing.
Despite this, Gazprom maintains an edge in export volume, albeit contingent on the continuation of favorable pricing arrangements. Reports from independent outlets, such as The Chronicle of Turkmenistan, highlight the projected capacity of Russia's Power of Siberia gas pipeline to China, expected to reach 38 bn cubic meters (bcm) by 2025. Meanwhile, Turkmenistan boasts a collective pipeline capacity of 55 bcm, bolstering its position as a formidable competitor in the Chinese market.
Turkmenistan's state-affiliated media outlets have seized upon this opportunity to cast doubt on the credibility of Russia's exports. Reports emphasizing Ashgabat's gas earnings from China have conspicuously omitted mention of Russia's contributions. Instead, focus has been redirected to other key suppliers, including Australia, Qatar, and Malaysia, primarily through liquefied natural gas transactions.
In a strategic move to consolidate its position, Turkmengaz's head, Maksat Babayev, has unveiled ambitious plans to develop Galkynysh, touted as the "world's largest gas field." The first stage of development already ensures a steady export of 30 bcm of gas per year to China, with plans for a second stage to add another 25 bcm annually. Additionally, a third phase of development aims to supply the long-anticipated Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project, with a projected capacity of 33 bcm.
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