China lends Turkmenistan $4bn for gas field

China Development Bank has granted Turkmenistan’s state-owned gas giant Turkmengaz a loan of US$4.1 billion to develop the Ioujno-Elotenshoie gas field and boost export capabilities, AFP reported, citing statements by Turkmengaz officials. The gas field in question is believed to hold the world’s fourth-largest reserves of natural gas, approximately 21 trillion cubic meters’ worth. Turkmenistan is trying to move away from dependence on older pipelines through Russia and develop new export routes and markets. This is the second loan facility extended by China to Turkmenistan since 2009, and is accompanied by a guaranteed gas supply contract.