April 17, 2026 [Reuters]- Turkmenistan’s state gas company and China’s CNPC signed a deal on Thursday to build the fourth ​phase of Turkmenistan’s Galkynysh gas field, which produces much of ‌the country’s annual 30 billion cubic meters in gas exports to China.

Under the deal, CNPC will build a facility for processing an additional 10 bcm of commercial gas ​per year at the field in the deserts of eastern Turkmenistan, ​along with drilling new production wells.

A Turkmen government source told ⁠Reuters the project will be entirely financed by Turkmenistan. Turkmengaz head ​Maksat Babaev told Reuters that it will cost $5.1 billion, and service both domestic ​and export markets.

No further details on the deal were available.

Turkmenistan, a mostly desert former Soviet republic that borders Iran and Afghanistan, has the fourth largest natural gas reserves in ​the world, with the bulk of its exports going to China.

At ​the ceremony, attended by journalists, Chinese Vice Premier Ding Xuexiang said: “China is ready to enhance ‌the ⁠quality of energy cooperation with Turkmenistan.”

Chinese state news agency Xinhua cited Ding as calling on both sides to take a strategic, long-term view of gas cooperation, urging an expansion of the scale of natural gas cooperation while ​improving its quality ​and efficiency.

Both countries ⁠have said that a potential fourth branch of the pipeline from Turkmenistan to China is under discussion, though ​the Line D project has been long delayed.

Turkmen officials have ​said ⁠they are keen to develop additional pipeline infrastructure to diversify their exports.

Ashgabat is building a pipeline to the Afghan city of Herat that it hopes may ⁠one ​day extend to Pakistan and India, and says ​it backs proposals for a Trans-Caspian pipeline to Europe via Azerbaijan and Turkey.