BEIJING, April 2 (RIA Novosti) - The president of the Central Asian republic of Turkmenistan is embarking on his 6-day visit to China Sunday on the agenda to be dominated by energy-related issues.
Speaking to Chinese reporters Saturday, Saparmurat Niyazov said "relations with the great China is of special importance to Turkmenistan" and hailed China's political and economic support for his country.
Niyazov highlighted energy dialog between Turkmenistan, which has huge oil and natural gas reserves and is the second largest gas producer among former Soviet republics after Russia, and China, which increasingly looks abroad for reliable oil and gas supplies for its booming economy.
"We are prepared to supply 30-40 billion cu m of gas to China," Niyazov said.
The president said China, which has given a low-interest loan to Turkmenistan for its oil and gas industry, and Turkmenistan were discussing ways to ensure supplies, which could be done through a joint venture or by allowing China to produce oil and gas under a product sharing agreement, which provides for tax breaks in exchange for an agreed amount of oil and gas output.
"We are working on these issues, but have not come to terms so far. This is not unusual, but we will find adequate solutions soon and start cooperation," the president said.
The deal with China will reduce Turkmenistan's reliance on Ukraine and Russia, main importers of its gas, and allow the Central Asian republic to raise prices.
Turkmenistan became Ukraine's principal supplier after Kiev signed an agreement with Ashgabat to increase Turkmen gas supplies, buying less from Russia.
Under an intergovernmental agreement last year, Turkmenistan is to deliver 40 billion cu m of gas to Ukraine at $50 per 1000 cu m in the first half of 2006 and at $60 per 1000 cu m in the second half.
Under an additional agreement to the 25-year contract signed on April 10, 2003 between Gazexport, Russian energ giant Gazprom's export arm, and Turkmenneftegaz, Turkmen gas deliveries to Russia were increased to 30 billion cubic meters in 2006. Of this amount, 15 billion cubic meters were contracted for the first quarter at the price of $65 per 1,000 cu. m.
