ASHGABAT, Turkmenistan, April 22. Growing demand for natural gas from China is set to underpin Turkmenistan’s fiscal stability and economic growth in the coming years, the Asian Development Bank's April 2026 outlook says, Trend reports.
According to information, hydrocarbon export revenues will remain the backbone of public finances, with steady demand from China expected to sustain budget revenues. The report notes that energy cooperation between the two countries is likely to deepen as China continues shifting from coal to natural gas.
The fiscal balance is projected to remain close to equilibrium, while government spending will continue to focus on social support measures, including price controls and subsidies for basic food products.
The ADB highlights that several key drivers will shape Turkmenistan’s economic growth trajectory. In the hydrocarbon sector, priority will be given to further development of major fields such as the Galkynysh Gas Field, alongside progress in the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline and expansion of gas-processing industries, including gas-to-gasoline production.
Earlier, in March 2026, Turkmengaz State Concern and the China National Petroleum Corporation (CNPC) signed a contract for the turnkey design and construction of facilities for the development of the fourth phase of the Galkynysh gas field, one of the largest in the world. The project is expected to enable annual production of up to 10 billion cubic meters of gas, supporting the expansion of Turkmenistan’s export capacity.