International forum for attraction of investments to oil and gas sector of Turkmenistan has been held in the Trade and industrial chamber. The forum was organized by the State Concerns Türkmengaz and Türkmennebit, the State Corporation Türkmengeologiýa and the Ministry of Finances and Economy of the country.

Representatives of the government structures, profile ministries and department, leading oil and gas, service and consulting companies, competent international organizations and financial structures, diplomatic and scientific circles as well as mass media were among the participants of the forum.

Around 500 delegates, more than 200 big companies from dozens of the countries of the world have registered at the event, which beat the record by the number of participants and geography, indicating high investment attraction of Turkmenistan for foreign business circles.

The plenary session was dedicated to global trends in energy markets and investment capabilities of Turkmenistan, which is among the world energy powers.

It was highlighted in the reports that according to the priorities of the policy pursued by President Gurbanguly Berdimuhamedov, Turkmenistan makes significant investments, both government and private, to production sphere making solid foundation for steadfast development and diversification of national economy in the last decade. The biggest investments are made in oil and gas sector.

The utmost attention is also paid to introduction of advanced technologies in all branches, opening of new export oriented and import substitutive production facilities, improvement of quality of national production, support of small and medium business, enhancement of the level of employment and development of social sphere.

Efficient investment policy provides high and stable economic growth. Thus, by the result of the first quarter of the year, it was 5.9 percent. The country keeps financial and social stability, takes timely integrated measures aimed at support of the competiveness of the branches and improvement of the efficiency of the economy, diversification of foreign trade operations, development of entrepreneurship structures. 

Even under conditions of the world economic crisis, which affected many developed countries of the world, the economy of Turkmenistan is stable. The share of investments remains on high level. Significant financial resources are used for implementation of large-scale regional and national projects, which have big international significance. It includes the construction of Turkmenistan – Afghanistan – Pakistan – India gas pipeline (TAPI) and Turkmenistan – Afghanistan – Pakistan (TAP) power line.

Orientation to achievement of the Sustainable development goals as well as to objectives set out in National program of social and economic development of Turkmenistan in 2011-2030 and the Program of the President of Turkmenistan for social and economic development of the country in 2019 – 2025 were important stimulus for further improvement of the efficiency of production. It is expected that the growth rate of the GDP in 2024-2025 will be 8 percent including by rational use of investments, wide introduction of innovative technologies, construction of various big facilities.

There are three main components for successful implementation of the objectives related to this in Turkmenistan. These are macroeconomic stability, investment readiness, in other words, the availability of legal base, efficiency of the mechanism of support of investments and private sector, natural and material resources and wise investment strategy.

In this context, joining of Turkmenistan to the World Trade Organization as an observer in 2020 was an important event, which would allow expanding the capabilities of integrations of our state to the world economic system, making new investment capabilities for attraction of foreign investors, including to oil and gas sector of Turkmenistan.

Secretary of the UN Economic and Social Commission for Asia and Pacific (ESCAP) Armida Salsiah Alisjahbana, Secretary of International Energy Forum (IEF) Joseph McMonigle, Acting Permanent Secretary of the UN in Turkmenistan Christine Weigand, trade representative of the Prime Minister of Great Britain in Turkmenistan, Baroness Nicolson Winterborn, head of the State Oil Company of Azerbaijan Republic Rovnag Abdullayev and other have taken part in discussion of current condition and forecasts of development of the word energy.

Special focus in the reports has been made on the necessity of restoration of the world economy after COVID-19 pandemic and transfer to eco-friendly development taking into account the global warming, which is a serious challenge for humankind.

According to the forecasts, the demand on energy carriers will be growing together with the world economy and population. At the same time, natural gas will be one of the most demanded hydrocarbons as it is economically and energy efficient, cheap and eco-friendly fuel.

High gas demand will be provided by power energy and industrial sector, especially petrochemical and gas processing spheres, which production is a source for making wide number of commodities, mineral fertilizers, etc. At the same time, the consumption of natural gas in living and transport sector will increase.

At the same time, taking into account the concerns of the world community about the problems related to the climate change, renewable sources of energy, especially wind and solar energy, innovations in the sphere of hydrogen and energy saving technologies, digitization of fuel and energy complex, will receive further development. 

From geographic point of view, the highest growth rates of energy consumption are expected in China and other countries of Asian Pacific region. As is known, taking the first place in Central Asia and fourth place in the world by natural gas reserves, our country is among the biggest producers of eco-friendly fuel in Eurasia, the biggest volume of which is exported to the PRC.

The Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to Turkmenistan Qian Naicheng highlighted that cooperation between China and Turkmenistan in gas sphere is a bright evidence of beneficial bilateral relations.

Important agreements on further strengthening of interstate partnership, including in energy sector, were achieved during recent telephone conversation between President Gurbanguly Berdimuhamedov and Chairman of the PRC Xi Jinping.

“China is ready to use capabilities for comprehensive expansion of the cooperation and giving of new life energy to such cooperation”, - Qian Naicheng said.

The work of the Forum was continued by the session “The Role of financial institutes in support of global energy agenda”, under which such issues as influence of COVID-19 on investments, achievement of the goals of the Paris treaty by oil and gas companies, latest trends in financing of oil and gas projects have been discussed.

In particular, it was noted that cooperation with international financial institutes is one of the strategic directions of economic policy of Turkmenistan, which is to enhance successful integration of the country to modern system of the world economic relations, to attract new foreign investors. Our country has joined dozens of international conventions and treaties, including in financial field. Representatives of several international financial institutes work permanently in Ashgabat.

Thus, partnership with International Monetary Fund and the Group of the World Bank is expanding every year. Mutual interest and desire to develop cooperation, search for mutually accepted solutions aimed at activation of fruitful relations have become the base for efficient joint activity of Turkmenistan and European Union in implementation of the EU programs for Central Asia.

Turkmenistan actively cooperates with Asian Development Bank, which supports not only national but also regional projects, for example, in development of technical specification and attraction of investments to the project of construction of Turkmenistan – Afghanistan – Pakistan – India gas line. Many investment projects, both in the government and private sector, are implemented with participation of the Islamic Development Bank.

This subject has been discussed in details under the session “Pipeline projects – driving force of transit to low-carbon future”. Big progress achieved in promotion of the TAPI project has been noted in the speeches of representatives of TAPI Pipeline Company Limited Consortium, Central Banks of the Islamic Republic of Afghanistan and Asian Development Bank.

New energy line is not only to provide the supply of Turkmen gas to the biggest countries of South Asia but also to become the key factor of strengthening of economic partnership, to support strengthening of peace and stability in the region.

At present time, the construction of Turkmen part of new energy line, which total length will be 1,840 kilometers and throughput capacity – 33 billion cubic meters of gas per year, is at the final stage.

Practical measures are undertaken for strengthening of resource base and development of production infrastructure of Turkmenistan – China gas line, which will allow increasing export volumes of Turkmen gas to the PRC. Gas compressor station at Malay Field with output capacity of 30 billion cubic meters of gas per year has been opened with participation of President Gurbanguly Berdimuhamedov last January.

New fields are put into operation at Bagtiyarlyk contractual territory, which are developed by Amudarya Gas Company of the Chinese National Petroleum Corporation according to the Production Sharing Agreement signed in 2007.

Special interest of the participants of the forum was raised by the reports presented at the session “Offshore fields of the Caspian Sea: Practice of development and investment opportunities”. In particular, foreign companies working in our country have made presentations about their activity.

In this regard, it was noted that development of hydrocarbon resources of Turkmen part of the Caspian Sea is one of the main vectors of development of oil and gas complex of Turkmenistan and attraction of foreign investments.

Petronas Carigali (Turkmenistan) (Malaysia), which explore and produce hydrocarbons at Block I contractual territory, is among old partners. More than 2.5 million tons of oil and 9.5 million tons of condensate as well as 27 billion cubic meters of natural gas have been produced by the company. By the April 2021, the investments of the company are around 11 billion US dollars.

In its turn, Dragon Oil (Turkmensitan) Ltd, the branch of Dragon Oil (UAE), develops Jeytun and Jugalybek fields, which are the parts of the Cheleken contractual territory. Big volume of works have been performed in this place for modernization and development of offshore oil and gas infrastructure. Total, 7.5 billion US dollars of investments have been developed for this purpose.

In addition, there are Production Sharing Agreements on number of offshore blocks with Buried Hill (Cyprus), ARETI (with the head office in Geneva, Switzerland). Italian ENI, which activity covers the Nebitdag Contractual Territory, works for many years in Caspian region. The main reserves of hydrocarbons are located in Burun field in this place. Fruitful cooperation has been established with Mitro International (British Virgin Islands), which together with Turkmen partners participates in development of the Eastern Cheleken Field in the composition of Hazar Consortium.

Signing of the Memorandum of Understanding between the Government of Turkmenistan and the Government of the Republic of Azerbaijan on joint exploration and development of Dostluk Field in the Caspian Sea has opened new perspectives for implementation of energy potential of the region.

By the end of 2021, the European Commission will approve new list of the European Union’s projects in power energy and gas sphere, which present mutual interest. The list includes important project for European energy market and for achievement of the goals of energy policy of EU for provision of affordable, safe and stable energy.

The first day of the forum was accomplished by the session “Investment projects in monetization of hydrocarbons – look into the future”, under which detailed information about activity for diversification of oil and gas industry of Turkmenistan, opening of new facilities for deep processing of oil and natural gas has been presented. 

According to the Program of development of oil and gas industry of Turkmenistan until 2030, it is planned to build the second train of the plant for production of synthetic gasoline from natural gas in Ahal Region, isobutene production unit in polymeric plant in Kiyanly, petrochemical complexes for production of rubber, polystyrene, polyvinyl acetate, methanol and other chemicals. At the same time, close attention is paid to increment of production capacities of Turkmenbashy Refinery Complex, where number of new units is planned to be put into operation.

Therefore, Turkmenistan will not only strengthen its positions in the world energy market as a big supplier of the energy carriers. The oil and gas sector will be modern, high technological, efficient, stably developing complex, which is based on natural and resource, scientific and technical potential of the country, world achievements in this sphere.

Number of contracts with foreign companies, including the procurement of big shipments of hydro treated diesel fuel, jet fuel, tempered petroleum coke and other production of Turkmenbashy Refinery Complex, has been signed under International forum.

Online meetings between heads of structural divisions of fuel and energy, financial and economic complexes of Turkmenistan and their potential partners, during which perspective directions of cooperation and certain projects have been discussed, were also held.