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Oil and gas complex of Turkmenistan: development priorities
Economy
Oil and gas complex of Turkmenistan: development priorities
Published 21.09.2023
1997

Turkmenistan is on the threshold of a significant, truly fateful date - the 32nd anniversary of independence. Over the years of sovereign development, our country has achieved impressive success in socio-economic development. The oil and gas industry, one of the leading sectors of the national economy, has an important role in strengthening the country’s economic independence.

The energy policy being consistently implemented under the leadership of President of Turkmenistan Serdar Berdimuhamedov is aimed at the comprehensive development of the fuel and energy complex and its dynamic integration into the international energy system. Large-scale investment projects, ongoing in our country in this area, are not only of great economic importance, but they also play a significant role in strengthening regional and global energy security.

Possessing the richest hydrocarbon deposits, Turkmenistan is committed to establishing business contacts with leading oil and gas companies and reputable financial institutions, as well as to significantly expanding the geography of energy supplies.

As President Serdar Berdimuhamedov emphasizes, we are carrying out a great deal of systematic work to develop the oil and gas industry and diversify routes for transporting natural gas to foreign markets. In accordance with the state energy strategy, the hydrocarbon potential of our country is realized in the interests of the people of Turkmenistan and other peoples around the world. Practical measures taken in this area are yielding positive results.

Being one of the energy countries in the world, Turkmenistan pays special attention to the creation of a new energy security architecture that meets the conditions and requirements of the time. The availability of inexpensive, reliable, environmentally friendly energy sources is of great importance for the rapid development of all states and the wellbeing of their people. The efforts of the international community are aimed at achieving this third Millennium Goal.

National Leader of the Turkmen people Gurbanguly Berdimuhamedov has repeatedly expressed Turkmenistan’s position on relevant issues at meetings of the UN General Assembly and other international forums.

The effective initiatives of Hero Arkadag were fully supported by the international community and were defined in the UN Resolutions “Reliable and stable transit of energy resources and its role in ensuring sustainable development and international cooperation” adopted in 2008 and 2013.

Today, the international initiatives of the National Leader of the Turkmen people, Chairman of the Halk Maslakhaty of Turkmenistan are successfully continued by Arkadag Serdar.

Turkmenistan put forward the initiative at the regular 78th session of the UN General Assembly on adopting a resolution on stable and reliable energy mobility. The draft resolution provides for the possibility of holding the International Forum “Sustainable Energy for All” in Turkmenistan in 2025 in order to promote global efforts to ensure access to affordable, reliable, sustainable and modern energy sources, as well as to sum up the outcomes of the UN Decade of Sustainable Energy for All (2014 -2024).

Turkmenistan attaches particular importance to energy efficiency and the use of renewable energy sources and is ready to cooperate with parties concerned in the context of the development and implementation of energy-saving technologies, as well as the development of renewable energy sources.

The supply of Turkmen natural gas to foreign markets through diversification is one of the priorities of the energy strategy of independent Turkmenistan.

Based on geological investigations carried out over the years of independence, with the acquisition of industrial gas flow from the “Galkynyş” gas field, it was identified that our country has huge underground reserves of hydrocarbon resources.

The reserves of the “Galkynyş” field, together with the “Ýaşlar” and “Garaköl” deposits, are estimated at about 27 trillion cubic meters. The industrialization of the “Galkynyş” gas field, which ranks second in the world in terms of gas reserves, is one of the large-scale investment projects related to increasing the gas resources of the industry.

The Turkmenistan-China gas pipeline, the source of which is the “Galkynyş” gas field, was opened on December 14, 2009 with the participation of National Leader of the Turkmen people Gurbanguly Berdimuhamedov. This date became an unforgettable event for workers in the oil and gas complex of our country. It is from then that the Day of Workers in the Oil and Gas Industry and Geology is stately celebrated annually on December 14.

Today, Turkmen natural gas is sent to foreign markets through the Dovletabat-Deryalyk, Korpedje-Gurtguyi and Dovletabat-Khangeran gas pipelines. Such a large-scale project as the Turkmenistan-China gas pipeline, through which Turkmen gas is supplied to the friendly country, can be viewed as a contribution of our state to the development of international energy cooperation.

The commissioning of the East-West gas pipeline with an annual capacity of 30 billion cubic meters integrated all gas pipelines of the country into one unified system. As a result, the East-West gas pipeline created an important condition for the flow of Turkmen energy resources through the Caspian Sea to international markets.

On the Day of Knowledge and Student Youth, on the eve of the 32nd anniversary of the country’s independence that will be celebrated by grand events, National Leader of the Turkmen people, Chairman of the Halk Maslakhaty of Turkmenistan Gurbanguly Berdimuhamedov held a general, in essence, historical lesson at the Ruhyýet Palace in Arkadag city. In his speech, the Hero Arkadag noted that “the country’s oil and gas complex is the basic source of strengthening economic independence, improving the people’s wellbeing, and creating high-capacity and diversified industries. Turkmenistan is an exporter of natural gas and electricity. Particular importance in this area is attached to the construction of the Turkmenistan-Afghanistan-Pakistan-India gas pipeline, which is one of the largest projects of the century”.

Indeed, the TAPI project is another practical step in the implementation of Turkmenistan’s energy strategy, the key aspects of which are the comprehensive modernization of the national fuel and energy complex, increasing its capacity for the future, and creating new systems for transporting energy resources to the world market.

The TAPI project is intended not only to promote the supply of Turkmen natural gas to the countries of South Asia, but also to become a key factor in strengthening economic partnership and maintaining peace and stability in the region.

In particular, TAPI will contribute to addressing important issues such as the peaceful restoration of neighboring Afghanistan, enhancing its socio-economic infrastructure, creating new jobs and improving the living standards of the neighboring people.

Currently, the raw material base for exporting Turkmen natural gas in various directions is strengthened, and its infrastructure is developing.

Evidence in this respect is the phased development of the “Galkynyş” gas field.

Under the wise leadership of President Serdar Berdimuhamedov, great importance is attached in the country to prospecting and exploration work in order to identify rich deposits, increase the production and processing of hydrocarbons, create various routes for the delivery of Turkmen energy resources to world markets, use innovations in oil and gas production, step up wells drilling and workover operations, including through the attraction of specialized foreign companies and investments.

Another important objective for the fuel and energy complex is to meet the growing domestic demand for energy resources, which is due to the dynamic pace of development of the leading economic sectors in the country, including the oil and gas, chemical, electric power, construction industries, etc.

The implementation of new projects in the gas industry is one of the key courses of our state’s policy. In accordance with the economic strategy of the President of Turkmenistan, addressing problems aimed at diversifying the entire national economic complex is aimed at increasing the amount and expanding the range of products manufactured, which are in high demand abroad.

For this purpose, the capacities of production facilities specializing in the deep processing of hydrocarbon raw materials are increased in a phased manner. An example in this regard is the polymer plant in Kiyanly, which produces various commodities by processing natural gas, as well as the gasoline production plant in Akhal.

Along with an increase in oil and gas production, strengthening the raw material base of the industry, creating a multi-variant system for transporting Turkmen energy resources to world markets, much attention is paid to the technique and technological equipment of enterprises in the energy sector, and mutually beneficial cooperation with enterprises processing hydrocarbon raw materials.

The operations carried out in the field of oil production in the country can be considered as another way to ensure the economic independence of neutral Turkmenistan.

The State Concern “Türkmennebit” carries out important activities in this regard.

Today, Turkmen oil workers, along with the development of traditional oil wells, successfully extract oil reserves from deeper layers.

 Oil, which is our national wealth, is extracted from carefully developed deposits such as “Uzynada”, “Barsagelmez”, “Goturdepe”, “Northern Goturdepe”, “Gamyshlyja”, “Keymir”, “Altyguyi”.

Along with the land part of Turkmenistan, marine complexes located in the Turkmen sector of the Caspian Sea are also developing.

With the successful implementation of these objectives, a favorable investment environment is created and legal framework is provided based on the Law of Turkmenistan “On Hydrocarbon Resources”.

Turkmen geologists carry out work to explore and discover deposits within Turkmenistan rich in oil and gas, groundwater, mineral resources and construction materials.

Over the years of independence, Turkmen geologists have done a lot of work to study the subsoil of the country and its resources, create and develop a reliable mineral resource base, which ensures long-term and reliable operation of existing industrial enterprises and increases their capacity.

As a result of geological investigations carried out over the past ten years, the “Galkynyş”, “Ýaşlar”, as well as “Zälki-Derweze”, “Garajaowlak” and other fields rich in natural gas and gas condensate were discovered, which are considered to be the largest deposits in the world, and their reserves were explored.

The “Uzynada” gas condensate field, located in the southwest of the country, that requires deep drilling, has also been discovered.

On the basis of discovered deposits and the created raw material base, large industrial enterprises of the fuel and energy complex, which is a high-capacity sector of the country’s economy, have been built and are successfully operating.

During the years of independence, Turkmen geologists have done a great deal of work to explore and study drinking, mineral and industrial waters. To date, a total of 107 deposits of underground drinking water have been discovered and confirmed such as Sunche, Kelete, Kaahka in the Akhal Velayat, Tahtabazar-I, Soyunaly, Batyz-I in the Mary Velayat, Halach-II and Dostluk in the Lebap Velayat, Chilmammetgum and Orta-Sumbar in the Balkan Velayat, Shavat and Shasenem-I in the Dashoguz Velayat. These reservoirs fully supply water to the population, industrial enterprises and pastures. Moreover, 14 mineral and 6 industrial water deposits have been discovered, and their reserves have been confirmed.

Based on geological work, Gaurdak sulfur, Aryk and Sakyrtma celestine, Gyzylgain kaolin, Tuvergyr coal, Oglanly bentonite, cement raw materials of the Balhan, Kopetdag and Koytendag Mountains, Myane quartz sandstone, Guvly table salt and a number of other sand and gravel deposits were discovered and explored, which contributes to strengthening the economic power of our country.

Thanks to the discovery of various types of raw material reserves, a number of industrial enterprises were put into operation, having great prospects in the development of various sectors of the economy. These include the cement plants of Baherden, Kelete, Balkan and Lebap, the Garlyk Mining and Potassium Plant, the “Türkmen aýna önümleri” plant, the granite and marble plant in Ovadandepe, and the “Garabogazsulfat” and “Guwlyduz” enterprises.

Possessing huge reserves, Turkmenistan pays great attention to the creation of modern oil and gas processing facilities, sending energy resources to world markets in order to use them for the benefit of all humanity.

In this regard, the production capacity of the Turkmenbashy Complex of Oil Refineries of the State Concern “Türkmennebit” is constantly increasing. Currently, the complex of plants produces motor gasoline, diesel fuel, aviation, lighting and industrial kerosene, liquefied gas, motor oils and various types of polypropylene, calcined coke, petroleum coke, road and construction bitumen, polypropylene coatings of various thicknesses and other petrochemical products.

Furthermore, the capabilities of the Turkmenbashy Complex of Oil Refineries and the Seydi Oil Refinery will be analyzed in detail, promising areas for their development will be determined, as well as the optimal range of petroleum products, taking into account modern requirements and demand on the world market.

Focusing the world community’s attention on issues of energy security, Turkmenistan has been actively developing relations with foreign companies over the past years.

The joint work of Turkmen and foreign specialists, leading manufacturers from Europe, Asia and America contributes to the achievement of set goals by establishing direct productive contacts, launching new projects, familiarizing with the global industry development trends and prospects.

Annually held sectoral exhibitions, meetings and conferences provide an effective platform for widely popularizing the achievements of the domestic fuel and energy complex and promoting international cooperation in the specific field.

These large specialized forums aimed at strengthening and expanding cooperation in the field of energy are held not only in the traditional manner, but also online, with the participation of delegates from dozens of countries around the world. The events are attended by representatives of government agencies, relevant ministries and departments, the world’s leading oil and gas business entities, financial institutions, reputable international organizations, diplomatic and scientific communities, and foreign experts.

During the forums, urgent topics such as maintaining the global energy security that covers the production, transportation and final consumption of energy resources, principles of relationships with partners, prospects for the development of energy diplomacy, alternative energy, innovative technologies and know-how in hydrocarbon production, and reducing methane and associated emissions are discussed. 

Another main objective is the development of licensed blocks of the Turkmen section of the Caspian Sea on the basis of foreign capital under a Production Sharing Agreement. For this purpose, Turkmenistan has a favorable investment climate in terms of financial, economic and legislative environment, which is consistently improving according to international requirements.

Issues related to optimizing oil and gas production in new fields by attracting foreign investment, developing offshore complexes in the Turkmen section of the Caspian Sea, expanding relations between the country’s specialists and representatives of foreign companies - manufacturers of equipment for the oil industry, and investment institutions are also discussed.

As an example, we can indicate the International Conference “Oil and Gas of Turkmenistan”, which was held 27 times, as well as the international mobile forum that takes place abroad repeatedly to attract foreign investment in the oil and gas industry of Turkmenistan.

This activity is a striking illustration of the growing attention from the world business community to the developing oil and gas market of Turkmenistan.

Long-term plans for the national gas-chemical and oil refining industries are closely related to the environmental component. When developing natural resources, Turkmenistan demonstrates rationalism in using them, concern for environmental preservation, and implements important international initiatives on energy security in the region and throughout the world. This is quite obvious from the industrial facilities being commissioned, where special importance is attached to compliance with environmental standards.

In this context, Turkmenistan is ready to further expand and intensify cooperation with international agencies in order to minimize environmental risks in the extraction of energy resources, introduce effective protective technologies into the production cycle, and apply modern management decisions. The work currently under way in the country in this area is yielding positive results.

Turkmenistan is focused on the accelerated modernization of the fuel and energy complex and the expansion of its infrastructure through the creation of modern production facilities. Regarded in this light, our state’s priority is the processing of natural gas and the production of new types of commodities.

In accordance with the innovation policy of President Serdar Berdimuhamedov, further expansion of the industry’s production capacities is closely related to ensuring energy security, the goals of sustainable economic development on a regional scale and globally, which promotes the Homeland’s prosperity, and the Turkmen people’s wellbeing in the period of the Revival of the New Epoch of the Powerful State.

Oil and gas industry workers are going to celebrate the country’s major holiday, the sacred Independence Day, with great labor successes, with a sense of great pride for the Homeland and the determination to achieve new labor successes for the further progress of Independent Neutral Turkmenistan.

B. Amanov,
Deputy Chairman of the Cabinet of Ministers of Turkmenistan

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