Exploring Turkmenistan’s Gas Trade Across Eurasia

Due to its vast natural gas reserves, Turkmenistan plays a crucial role in gas trade across Eurasia.

The country is strategically positioned to supply gas to China, Russia, and Iran. In addition, it is exploring new markets in South Asia and Europe. Therefore, Turkmenistan gas is vital to Eurasia’s energy supply chains.

Turkmenistan Gas Reserves and Infrastructure

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

The country holds the world’s 4th largest proven natural gas reserves, estimated at around 400 Trillion Cubic Feet (TCF), after Russia, Iran, and Qatar.

Gas Production Volumes

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

Turkmenistan produced 80.6 BCM of gas and exported about 39.5 BCM in 2023.

Therefore, about half of Turkmenistan’s natural gas production is exported, with China being the primary importer. China accounts for 75%-80% of Turkmenistan’s gas exports.

Key Gas Fields:

• Galkynysh Field: One of the largest gas fields in the world.
• Dauletabad Field: 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: This is the primary route for Turkmenistan gas exports to China.
  • Length: Over 10,000 km
  • Capacity: ~55 billion cubic meters (BCM) per year
  • Route: Turkmenistan → Uzbekistan → Kazakhstan → China
  • Operators: China National Petroleum Corporation, Türkmengaz, Uzbekneftegas,and KazMunayGas
• Central Asia–Center Gas Pipeline System: Supplies Turkmenistan gas to Russia.
  • Length: 2,000 km
  • Capacity: ~90 billion cubic meters (BCM) per year
  • Route: Turkmenistan → Uzbekistan → Kazakhstan → Russia
  • Operators: China National Petroleum Corporation, Gazprom, Türkmengaz, Uzbekneftegas and KazMunayGas
• 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 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 is Turkmenistan’s largest gas importer. In 2024, Turkmenistan supplied China with about 32.5–33.5 BCM of gas. Therefore, China accounts for 70% of Turkmenistan’s gas exports. 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. However, due to pricing disputes, Russia reduced its purchases after 2009 and reached zero in 2016. In 2019, Russia resumed imports through the Central Asia-Center (CAC) pipeline. In 2024, Russia imported about 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.

Potential Future Markets For Turkmenistan Gas Exports

Europe

The European Union is keen to diversify its gas sources and reduce dependence on Russian supplies; Turkmenistan is an attractive option.

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

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 linking 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 kilometres, 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. Five BCM of gas will go to Afghanistan, and 14 BCM each will go to India and Pakistan.
• Strategic Significance: TAPI will enable Turkmenistan to diversify its export markets to South Asia.
• Challenges:
  • Security Concerns: A significant section of the pipeline crosses Afghanistan. Unfortunately, Afghanistan is a country plagued by political instability and security challenges.
  • Financial and Technical Hurdles: Securing the necessary funding is very challenging. So far, no international bank or financial institution wants to fund the projects because of the geopolitical risks associated with Afghanistan and Pakistan.

Trans-Caspian Pipeline

The 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 kilometres (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 pipeline will enable Europe to reduce its reliance on Russian gas supplies by providing an alternative supply route from Central Asia.

Recent Development Regarding Turkmenistan Gas Trade in Eurasia

• Turkey: ​Turkmenistan began gas exports to Turkey via Iran on March 1 2024. This results from an agreement between Turkmenistan’s state-run company, Turkmengaz, and Turkey’s state-owned pipeline operator, BOTAS.
• 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 70% 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

Constructing and maintaining long-distance pipelines, such as TAPI or the Trans-Caspian Pipeline, requires significant investment, which Turkmenistan is struggling 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

The proposed Trans-Caspian Gas Pipeline (TCP) would enable Turkmenistan to supply Europe via Azerbaijan, reducing its dependence on China.

Strengthening Trade with South Asia

Once completed, the TAPI (Turkmenistan-Afghanistan-Pakistan-India) Pipeline would transport 33 BCM of gas annually to Pakistan and India. Due to its surging demand, India could become a long-term buyer of Turkmen gas.

Strengthening Relations with China

China will remain Turkmenistan major gas importer for the medium to long term. China is already actively negotiating additional gas contracts with Turkmenistan. The long-term plan is to increase exports to over 60 BCM annually.