New gas pipelines to China and Iran to strengthen Turkmen economy

Oil&Gas Materials 28 August 2009 15:12 (UTC +04:00)

Turkmenistan, Ashgabat, August 28 / Trend G. Hasanov /

Turkmenistan, an energy power with huge proven energy resources, has consistently and carefully been working on the diversification of export routes to world markets, for global energy security, an article published in "Neutral Turkmenistan" said.

"It is difficult to overestimate the importance of Turkmenistan-China gas pipeline's construction which is under being completed.

It is a large trans-national project, along with a new pipeline from the huge field of Dovletabat to the Iranian border, which will be also built by late 2009. It will greatly expand the country's pipeline system, give stability in the strategic sector of national economy, regardless of the world economic and political situation and ensure security of demand for one of the main areas of the national export," the article said.

"Neutral Turkmenistan" emphasizes that besides purely economic benefits, diversification serves to strengthen the country's sovereignty, its right to freely choose its business partners, and avoid politicizing commercial projects.

Turkmenistan is opening its market to leading companies in Europe and Asia, for example, to the German energy giant RWE AG. In June RWE AG.got a license to explore and produce oil and gas reserves in the Turkmen sector of the Caspian Sea.

"The economic crisis shaking the world has demonstrated, once again, the importance of diversification for the sustainable development of national economies," the article says.

The article said that a variety of industries and sectors are compensating for reduction in production in some industries with the growth of others. Thus, developing small and medium businesses can keep a total slump of the economy at bay, thanks to their capacity for rapid restructuring and market reorientation.

Moreover, economic diversification is evident in the development of new industries. Turkmenistan has laid the foundation for metallurgy along with a modified development of the energy, textile, agricultural and other traditional industries. Turkmenistan set up its first steel mill in Owadan-depe in May to meet the needs of a rapidly developing domestic construction industry.

A large-scale Turkmen-Belarussian project to build a plant for potash production was launched during Belarussian President Alexander Lukashenko's official visit to Turkmenistan.

This project has initiated a new mining industry in the national economy. The country has rich raw material base for this industry.

The first hotels in the national tourist area, "Avaza", on the Caspian Sea, were put into operation in June, in preparation for the launch of the resort. This is visible evidence of the tourist industry's growth - a highly profitable sector of the Turkmen economy.

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