The No.1 Gas Processing Plant in Bagtyiarlyk contract area of the Amu Darya natural gas project was laid a foundation on June 27. A 100 km-long gas pipeline within the territory of Turkmenistan also commenced its construction on the same day.

Letter of congratulations from both Chinese President Hu Jintao and Turkmenistan President Gurbanguly Berdimuhamedov were readout at the groundbreaking ceremony. Zhang Guobao, Vice Chairman of National Development and Reform Commission, Director of the Bureau of Energyand Special Envoy of the Chinese Government, Bayrammyrat Myradov, Executive Director of Turkmen State Agency for Management and Use of Hydrocarbon Resources and Special Envoy of Turkmenistan President, CNPC Vice President Liao Yongyuan and Chairman of Turkmengaz, Yagshygeldy Kakayev attended the ceremony.

In July, 2007, CNPC signed a production sharing agreement to explore and develop oil and gas fields on the right bank of the Amu Darya River, and a Sino-Turkmenistan natural gas sale-and-purchase agreement with Turkmen State Agency for Management and Use of Hydrocarbon Resources and Turkmengaz State Concern respectively. The Amu Darya project is by far the largest one of its kind in China's international natural gas cooperation.

Being the starting point and a major gas supplier of the Central Asia Gas Pipeline, the Bagtyiarlyk No.1 Gas Processing Plant will be completed and bring into service by the end of 2009.