Exploring Turkmenistan’s Gas Trade Across Eurasia

Turkmenistan plays a pivotal role in Eurasian gas security, supplying gas to China, Russia, and Iran and exploring new markets in Europe and South Asia.

The nation’s economy heavily relies on natural gas exports, constituting a significant portion of its state revenue.​

Turkmenistan Gas Reserves and Infrastructure

Turkmenistan is one of the world’s largest natural gas producers and exporters, and it plays a crucial role in the Eurasian gas market.

The country holds the world’s 4th largest proven natural gas reserves, estimated at around 19.5 trillion cubic meters (TCM), after Russia, Iran, and Qatar.

Gas Production Volumes

In 2024, Turkmenistan’s natural gas production reached about 77.6 billion cubic meters (BCM).

In 2023, the country produced around 98.3 BCM of natural gas, a 5.8% increase from the 92.9 BCM produced in 2022. Exports in 2023 were 46.97 billion cubic meters of natural gas, an increase from 43.1 BCM in 2022. 

Therefore, approximately half of Turkmenistan’s natural gas production is exported, with China being the primary importer. ​

Key Gas Fields:

• Galkynysh Field: One of the largest gas fields in the world.
• Dauletabad Field: Historically, it was the largest gas-producing field before Galkynysh’s discovery.
• Bagtyyarlyk and South Yolotan Fields: Additional major fields boosting national production.

Pipeline Infrastructure:

Due to the country’s landlocked nature, Turkmenistan’s gas export network relies heavily on pipelines. Major pipelines include:

• Central Asia-China Gas Pipeline (CAGP) – The primary route for exports of Turkmenistan gas to China.
  • Total Length: Over 10,000 km
  • Capacity: ~55 billion cubic meters (BCM) per year
  • Route: Turkmenistan → Uzbekistan → Kazakhstan → China
  • Operator: China National Petroleum Corporation
• Korpeje-Kurt Kui Pipeline – Supplies Turkmenistan gas to Iran.
  • Length: 200 km
  • Capacity: 8 billion cubic meters (BCM) per year
  • Route: Korpeje Gas Field (Balkan Province, Turkmenistan) → Kurt-Kui (Golestan Province, Iran)
  • Operator: Turkmengaz (Turkmenistan), National Iranian Gas Company (NIGC) (Iran)
• East-West Pipeline – A domestic pipeline connecting fields in the east with the Caspian coast, designed to facilitate future exports to Europe.
  • Length: 773 km
  • Capacity: 30 billion cubic meters (BCM) per year
  • Route: Shatlyk (Mary Province, east) → Belek (Balkan Province, west)
  • Operator: Turkmengaz

Key Export Markets of Turkmenistan’s Gas in Eurasia

China (Largest Buyer of Turkmenistan Gas in Eurasia)

China remains the principal importer of Turkmenistan’s gas across Eurasia, accounting for over 70% of Turkmenistan’s gas exports. In 2024, Beijing received 32.5–33.5 BCM of Turkmen gas as a primary importer. Turkmenistan exports most of its natural gas to China through the Central Asia-China Gas Pipeline.

Russia (A Historical Partner)

Russia was once Turkmenistan’s top gas importer, but due to pricing disputes, it reduced purchases after 2009 and reached zero in 2016. In 2019, Russia resumed imports through the Central Asia-Center (CAC) pipeline. Imports reached about 10 billion cubic meters in 2021, up from 4.7 cm in 2020. In 2024, Russia imported approximately 31 BCM of Turkmen gas. Russia uses Turkmen gas to meet domestic demand and re-export some to Europe.

Iran ( Limited Partner in Eurasia)

Iran historically imports small volumes of Turkmen gas (5-6 BCM annually) to supply its northern regions. However, Turkmenistan halted gas exports in January 2017 due to payment disputes with Iran, which reportedly owed Turkmenistan $1.8 billion.

Potential Future Markets For Turkmenistan Gas Trade

Europe

The European Union is keen to diversify gas sources and reduce dependence on Russia, making Turkmenistan an attractive supplier.

​Turkmenistan, possessing the world’s fourth-largest natural gas reserves, has historically focused its gas exports toward China and Russia.

However, in recent years, the country has initiated efforts to diversify its export markets, mainly to supply natural gas to Europe.​

To achieve diversification, Turkmenistan proposes the Trans-Caspian Subsea Gas Pipeline. The pipeline will transport natural gas from Turkmenistan to Azerbaijan, traversing the Caspian Sea and connecting it with the Southern Gas Corridor to Europe.

South Asia

​Endowed with substantial natural gas reserves, Turkmenistan has been actively seeking to diversify its export markets beyond traditional partners like China and Russia. A key plan is to export gas to South Asian nations, especially India, via the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline.​

Alternative Gas Export Routes 

Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline​

• Route and Capacity: The TAPI pipeline will span about 1,814 kilometers, originating from the Galkynysh gas field in Turkmenistan, passing through Afghanistan and Pakistan, and terminating in Fazilka, India. It will export up to 33 BCM of gas annually, with allocations of 5 BCM to Afghanistan and 14 BCM each to Pakistan and India. 
• Strategic Significance: For Turkmenistan, TAPI represents an opportunity to diversify its export markets and reduce dependency on existing routes to China and Russia. For India, the pipeline positions Turkmenistan as a crucial energy partner, enhancing India’s connectivity with Central Asia.
• Challenges and Considerations:
  • Security Concerns: A significant section of the pipeline crosses Afghanistan, a country known for political instability and security challenges.
  • Financial and Technical Hurdles: Securing the necessary funding and addressing technical complexities associated with constructing a pipeline across diverse terrains pose additional challenges to the project’s realization.​

Trans-Caspian Pipeline

A proposed pipeline would connect Turkmenistan to Azerbaijan, allowing gas exports to Europe via the Southern Gas Corridor.

• Route and Capacity: The pipeline will extend about 300 kilometers (186 miles) from Turkmenbashi in Turkmenistan to Baku in Azerbaijan. It is designed to transport up to 30 BCM of natural gas annually. ​
• Integration with Existing Pipelines: Upon reaching Baku, the TCP is expected to integrate with the South Caucasus Pipeline (Baku-Tbilisi-Erzurum pipeline) and further connect to the Trans-Anatolian Natural Gas Pipeline (TANAP). This connection would facilitate the flow of Turkmen gas through Turkey and onward to European countries, aligning with the Southern Gas Corridor initiative. 
• Strategic Significance: The TCP will enable Europe to reduce its dependency on Russian gas by providing an alternative supply route from Central Asia. This aligns with the European Union’s objectives to diversify energy sources and enhance supply security.

Recent Development Regarding Turkmenistan Gas Trade in Eurasia

• Turkey: ​Turkmenistan began gas exports to Turkey via Iran on March 1. This results from an agreement between Turkmenistan’s state-run company, Turkmengaz, and Turkey’s state-owned pipeline operator, BOTAS. This deal will enhance Turkey’s energy security and diversify Turkmenistan’s export routes.
• Iraq: In November 2024, Turkmenistan signed a protocol with Iraq to export 8–10 BCM of natural gas annually over five years.

Key Challenges in Turkmenistan’s Gas Trade in Eurasia

Limited Export Routes & Market Dependence

Most of Turkmenistan’s gas exports (~40 BCM annually) go to China. Thus, China absorbs over 80% of Turkmenistan’s gas exports, creating a single-buyer risk. This reduces pricing leverage and increases Turkmenistan’s economic vulnerability. In addition, Unlike Russia, which has pipeline access to Europe, Turkmenistan must depend on intermediaries or costly infrastructure projects like the Trans-Caspian Pipeline, which faces delays due to geopolitical obstacles. Unlike Russia or Qatar, Turkmenistan has no liquefied natural gas (LNG) terminals, limiting seaborne exports.

Geopolitical and Market Pressures

Russia and Iran actively block Turkmenistan’s alternative export routes, such as the Trans-Caspian Pipeline, fearing competition in European markets. The TAPI (Turkmenistan-Afghanistan-Pakistan-India) pipeline is stalled due to instability in Afghanistan, delaying Turkmenistan’s ability to diversify its gas markets. Global gas markets are becoming more competitive, and Azerbaijan, Russia, Australia, Qatar, and the United States are expanding their influence.

Infrastructure & Investment Issues

Building and maintaining long-distance pipelines, such as TAPI or the Trans-Caspian Pipeline, requires significant investment, which Turkmenistan struggles to attract to the country. Some of Turkmenistan’s existing pipelines and gas processing facilities need modernization, increasing operational inefficiencies.

Opportunities Regarding Turkmenistan’s Gas Trade

Market Diversification

• Expanding Exports to Turkey and Europe: The recent agreement to export gas to Turkey via Iran opens a new market. It could pave the way for Turkmenistan gas trade to reach Europe, a strategic region in Eurasia. The proposed Trans-Caspian Gas Pipeline (TCP) would allow Turkmenistan to supply Europe via Azerbaijan, reducing dependence on China.
• Strengthening Trade with South Asia: Once completed, the TAPI (Turkmenistan-Afghanistan-Pakistan-India) Pipeline could supply 33 BCM of gas annually to Pakistan and India, diversifying export revenues. Due to its surging demand, India could become a long-term buyer of Turkmen gas.
• Increasing Exports to Iran and the Middle East: Turkmenistan recently resumed gas swaps with Iran, supplying gas to Azerbaijan. Growing this arrangement could further integrate Turkmenistan into regional energy markets.

Infrastructure Development & Investment Opportunities

• New Export Pipelines: Completing Line D of the Central Asia-China Gas Pipeline would increase exports to China beyond 40 BCM per year. The potential development of alternative pipelines, such as connections to the Southern Gas Corridor, could integrate Turkmen gas into European markets.

Strengthening Relations with China

• Turkmenistan remains a key supplier to China, and new agreements could ensure long-term demand. China is actively negotiating additional gas contracts with Turkmenistan. The long-term plan is to increase exports to over 60 BCM annually via expanded pipeline infrastructure.

Closer Ties with Turkey and the European Union

• Turkmenistan’s recent agreement to supply gas to Turkey could be a stepping stone for greater integration into European markets. The EU’s push to move away from Russia’s gas supplies increases demand for Turkmen gas, making projects like the Trans-Caspian Pipeline more attractive.

Improved Relations with Iran

• Iran’s role as a transit country for Turkmen gas to Turkey and Azerbaijan opens new indirect export channels.