China-CIS nation’s trade reaches US$46 billion

David Nealis President of Ceres Ltd

China-CIS nation’s trade reaches US$46 billion

China's Ministry of Commerce has revealed that economic cooperation and trade between China and central Asian countries - Kazakhstan, Uzbekistan, Kyrgyzstan, Turkmenistan, and Tajikistan; accelerated to US$46 billion in 2012, 13.7% higher than a year earlier. The Ministry said China has become the largest trade partner of Kazakhstan and Turkmenistan, the second-largest trade partner of Uzbekistan and Kyrgyzstan, and the third-largest trade partner of Tajikistan. In the first eight months of this year, bilateral trade between China and central Asia totaled US$32.4 billion.

Turkmenistan to boost natural gas deliveries to China

Turkmenistan to boost natural gas deliveries to China

China has been diversifying and expanding access to energy needed to power its fast-growing economy and reduce its reliance on heavily polluting coal and oil.

 China, the world's second-largest economy, has been diversifying and expanding access to energy needed to power its fast-growing economy and reduce its reliance on heavily polluting coal.

In an agreement, signed by President Hu Jintao and Turkmen President Gurbanguly Berdymukhamedov, Turkmenistan agreed to increase annual gas deliveries by 25 billion cubic meters a year, bringing the total to 65 billion cubic meters annually. This is equivalent to more than half of China’s entire natural gas consumption last year.

The gas agreement was one of 14 signed between Turkmen President Gurbanguli Berdymukhamedov and Chinese President Hu Jintao. Both sides agreed to enhance security and law enforcement cooperation, promising joint efforts to fight terrorism, separatism and extremism, and cross-border crimes. The other agreements covered loans for the purchase of oil and gas drilling equipment, recognition of university degrees, police training, combating money laundering and counterterrorism.

 During their meeting, President Hu Jintao called Turkmenistan “a long-term and stable strategic energy partnership”. China became Turkmenistan's largest trade partner in 2011, with bilateral trade rising to $3.56 billion in the first three quarters.

China and Turkmenistan launched a natural gas pipeline in Central Asia in December 2009. The 1,833-km pipeline is the longest in the world and had delivered 10 billion cubic meters of natural gas to China by the end of May this year.

The agreement has greatly assisted China in diversifying its sources of energy and Turkmenistan has welcomed the cooperation with China, as they find alternatives to its dependence of selling to Russia.  In addition to natural gas sales to China, Turkmenistan has been expanding gas exports to nearby Iran and hopes to craft a deal with the EU in the near future.