China allocates credit of USD 4 bln to Turkmenistan

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25/6 Tass 570a

ASHGABAT, June 25 (Itar-Tass) -- China has allocated a favourable
credit of four billion US dollars to Turkmenistan. A corresponding
intergovernmental agreement was signed on Wednesday on the results of
talks between Turkmen President Gurbanguly Berdymukhamedov and Chinese
Deputy Prime Minister Li Keqiang who is staying on an official visit here.
It was signed by the state concern Turkmengaz and the Chinese Development
Bank.
The credit destination wasn't officially announced. However, in early
June, Ashgabat said about its agreement with China on a credit of three
billion dollars for the development of a huge gas field Southern Eloten
with reserves of 4-14 billion cubic meters of natural gas.
Describing the conclusion of construction of the gas pipeline
Turkmenistan-China as the main priority of cooperation, Berdymukhamedov
said that "in late this year, we'll put it into operation and we'll
annually supply 40 billion cubic meters of gas."
A purchase and sale agreement signed by the state concern Turkmengaz
and the Chinese National Oil and Gas Corporation signed on Wednesday
confirmed this volume. According to the Chinese deputy prime minister,
"this is an additional volume of supplies." The earlier signed purchase
and sale agreement envisaged the annual volume of supplies equal to 30
billion cubic meters of gas. Ashgabat offered to increase the volume of
supplies to 40 billion cubic meters in August 2008 during a visit of
Chinese President Hu Jintao to Turkmenistan.
Another two documents on the results of talks were signed by leaders
of the State Agency on management and use of hydrocarbon resources at the
president of Turkmenistan and CNPC International - - on sale, extraction
of gas and condensate on the territory of Bakhtyyarlyk - - a raw material
source of the Chinese gas pipeline.
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