Turkmenistan says tests confirm huge gas reserves

ASHGABAT, Sept 3 (Reuters) - Turkmenistan said on Thursday new tests have confirmed huge gas reserves at its largest natural gas field, South Iolotan, which it sees as a key future supplier to energy markets.

The former Soviet republic, Central Asia's largest gas producer, used to sell most of its gas to Russia. But supplies stopped in April after Moscow demanded a review of sales terms.

In order to join new export routes, such as the European Union-backed Nabucco pipeline that would bypass Russia, Turkmenistan needs to show it has substantial gas reserves, analysts have said.

South Iolotan contains between 4 trillion and 14 trillion cubic metres of gas, Britain's Gaffney, Cline and Associates (GCA) said last year, making it one of the world's five largest deposits.

On Thursday, Turkmenistan's Oil and Gas Ministry said fresh tests confirmed those findings.

"The results obtained have once again confirmed GCA's estimates," it said in a statement, without giving further details.

In June, Turkmenistan secured a $3 billion loan from China to develop South Iolotan, which could produce up to 50 billion cubic metres of gas a year when it comes on stream. (Reporting by Marat Gurt; Writing by Olzhas Auyezov, editing by Anthony Barker)