ASHGABAT, Turkmenistan, December 27. Turkmenistan has been actively developing its energy sector in recent years, focusing efforts on diversifying and modernizing its energy infrastructure.
Investments in modern technologies and infrastructure allow Turkmenistan to increase energy efficiency, ensure the stability of the system and expand its opportunities for energy exports, which generally contributes to strengthening the economy of the country and its position in the global energy market.
According to the review prepared by Trend, Turkmenistan demonstrates good results in the development of its energy sector for the whole of 2023.
Attracting foreign investment
Deputy Chairman of the Cabinet of Ministers Batyr Amanov reported during a government meeting at the end of June that the Turkmennebit State Concern of Turkmenistan is working to attract foreign investors and companies to the development of licensed areas of the Turkmen sector of the Caspian Sea.
Production of hydrogen from gas
President of Turkmenistan Serdar Berdimuhamedov, during a meeting in Ashgabat with Hungarian Prime Minister Viktor Orban in early June, said that Turkmenistan is ready to consider Hungary's proposals for the production of hydrogen from natural gas. Berdimuhamedov noted that the production of hydrogen from natural gas is currently a promising and very popular direction. In this regard, he suggested instructing the relevant state structures of the two countries to prepare a list of measures to establish cooperation in the energy sector.
Drilling of new wells
Turkmengaz State Concern of Turkmenistan for the period of the end of April was drilling 10 new wells at the Galkynysh field, which is the largest oil and gas field of Turkmenistan with an area of 1,842 square kilometers, located in the Mary region of the country. Predictive calculations of development indicators provided for 7 stages of development. As part of the first stage of field development, the operational fund of producing wells was 51 units. The average estimated gas flow rate was 1.5 million cubic meters per day, and the potential of the reservoir allowed for a long time to operate wells with a flow rate of more than 2 million cubic meters per day.
CNPC Investments
China National Petroleum Corporation (CNPC) has invested more than $9.4 billion in Turkmenistan within the framework of the "Bagtyyyarlyk" contract territory. According to company officials, CNPC exports 13 billion cubic meters of commercial gas annually and pays $1.2 billion in taxes to Turkmenistan. In addition, the corporation has already invested $26 million in social projects and created tens of thousands of jobs.
New gas processing plants
South Korean Daewoo E&C in cooperation with the Turkmenhimiya State Concern has been working on projects for the construction of two plants in Turkmenistan, where natural gas is the raw material for production. One of them, according to the plans, was a plant for the production of ammonia and urea with a capacity of 660,000 tons per year and 1,155 tons per year, respectively, which will be located in the Balkan region of the country. The second project is a plant for the production of phosphorus fertilizers with a capacity of 300,000 tons per year on the basis of the Turkmenabat chemical plant in the Lebap region.
Cooperation with the UAE
The UAE Minister of State, member of the Board of Directors of the Abu Dhabi National Oil Company (ADNOC), Abu Dhabi Fund for Development Ahmed Ali Al Sayegh at the forum on attracting investments in the energy sector of Turkmenistan in late April said that the UAE, which has been involved in the energy sector of Turkmenistan for more than two decades, is expanding the presence of its companies in the Turkmen economy through investments.
Plans to increase gas production
Irina Luryeva, head of the laboratory of the Scientific Research Institute of Natural Gas of the Turkmengas State Concern, said at the end of April that the State Concern Turkmengaz of Turkmenistan plans to bring the stable inflow of natural gas from the Galkynysh field to 200 billion cubic meters per year. According to her, achieving such an indicator of natural gas production is possible with the implementation of all 7 stages of operation. She noted that the field is at the stage of pilot operation and in the future the rate of gas extraction will increase, and also added that during the period of continuous selection, it is planned that annual gas production throughout the field will reach about 200 billion cubic meters per year.
Dragon Oil plans
The Chief Executive Officer of Dragon Oil, Ali Rashid Al Jarwan, said at the end of April that the company intends to invest at least $8 billion in projects in Turkmenistan in the next 15 years. He noted that for more than 20 years of joint work, the company has invested more than $8 billion in projects for the development of oil fields in Turkmenistan, and is ready to invest at least as much in the next 15 years.
Interest of South Korean companies
Head of the Korea-Turkmenistan Inter-Parliamentary Friendship Group Lee Dal-gon during a meeting with the President of the Supreme Council of Turkmenistan Gurbanguly Berdimuhamedov in mid-April said that South Korean companies are interested in implementing projects in the gas sector in Turkmenistan. According to him, Turkmenistan is a country with huge reserves of natural gas and therefore South Korean companies are interested in implementing projects there.
Reduction of gas imports by Gazprom
Russian Gazprom PJSC bought about 5 billion cubic meters of gas from Turkmenistan last year according to the agreement signed by the parties, Russian Ambassador to Ashgabat Alexander Blokhin said. According to him, Gazprom purchased 10 billion cubic meters of gas from Turkmenistan in 2021. He noted that Gazprom had an agreement on gas supplies with Turkmenistan concluded until 2024, and last year it was extended.
Construction of underground gas storage facilities
Russian companies have shown great interest in the project of construction of underground gas storage facilities in Turkmenistan. This was stated by the Deputy Prime Minister of the Russian Federation Alexander Novak. He noted that Turkmenistan and Russia have agreed to continue cooperation in the energy sector and in the modernization programs of the Turkmen electric power system.
Increasing gas supplies to China
Turkmenistan intends to continue working on the implementation of new projects related to increasing natural gas supplies to China, Rashid Meredov, Minister of Foreign Affairs of Turkmenistan, said. He made the remark at the meeting with Hou Qijun, Board member and President at China National Petroleum Corporation (CNPC), who was on a working visit to Ashgabat.
Development of cooperation with Lithuania
Turkmenistan and Lithuania are ready to develop ties in the energy sector. This opinion was expressed during a meeting in Ashgabat of the delegations of Turkmenistan headed by Deputy Minister of Foreign Affairs Vepa Hajiyev and Latvia headed by Vice Minister Mantas Adomenas. The diplomats analyzed the current state of cooperation between the two countries and expressed readiness to intensify it in the energy sector, as well as in such areas as transport and logistics infrastructure, ecology, etc.
Construction of a gas compressor station
Turkmenistan's Turkmengaz State Concern will build a new compressor station on the East-West gas pipeline. Prequalification for the implementation of this plan involves construction, supply of equipment, and commissioning of the new station. The East-West gas pipeline is one of the key main arteries through which Turkmenistan is creating a single closed gas transportation system connecting the fields in the Mary region with the Caspian hydrocarbon deposits. Thanks to this gas pipeline, Turkmenistan can freely redistribute natural gas between suppliers.
Production of gas condensate
Turkmennebit State Concern of Turkmenistan plans to receive a large inflow of gas condensate from the promising Uzynada field, thanks to the commissioning of two new wells in August this year. The state concerned drilled 1.6 kilometers of well No. 74 with a design capacity of 6.8 kilometers in the first 3 months of 2023, and well No. 83 with a similar design capacity reached a depth of 900 meters.
Interest in increasing gas exports to China
Turkmenistan intends to continue working on the implementation of new projects related to increasing natural gas supplies to China, Rashid Meredov, Minister of Foreign Affairs of Turkmenistan said. He made the remark at the meeting with Qijun Hou, Board member and President at China National Petroleum Corporation (CNPC), who was on a working visit to Ashgabat.
Projects with Pakistan
The Coordinator for Trade and Industry of the Prime Minister of Pakistan, Rana Ihsan Afzal Khan, and Turkmenistan's Ambassador to Islamabad Atadjan Movlamov, discussed the implementation of major joint projects – the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and the Turkmenistan-Afghanistan-Pakistan (TAP) power transmission line and fiber-optic communication line. During the meeting, the parties stressed that the signing of the plan for the joint implementation of the TAPI gas pipeline project, which took place on June 8, 2023, is a significant step towards advancing the implementation of this project.
Interest in hydrogen energy
The second meeting of the Interdepartmental working group on the development of hydrogen energy was held in Turkmenistan under the leadership of Deputy Minister of Foreign Affairs Berdyniyaz Myatiev in early July. During the meeting, the participants discussed a set of priority tasks, in particular, the implementation of the roadmap for the development of international cooperation in the field of hydrogen energy in Turkmenistan for 2022-2023, as well as the study of foreign experience in this area.
Implementation of renewable energy projects thanks to UNICEF
UN International Children's Emergency Fund (UNICEF) and the Ministry of Health and Medical Industry of Turkmenistan are implementing a project to introduce renewable energy sources in medical institutions of the country. It was noted that the first innovative energy supply project was the Pelvert Rural Health Center in the Halach district of the Lebap region of Turkmenistan, where a new solar photovoltaic system was set up.
Sale of environmentally friendly gasoline to Afghanistan
Entrepreneurs from Afghanistan purchased 35,000 tons of ECO-93 brand gasoline produced at the enterprise of the Turkmenhimiya State Concern through the State Commodity and Raw Material Exchange of Turkmenistan. The total amount of transactions amounted to $22.9 million.
Trans-Caspian Gas Pipeline project
Turkmenistan is ready to cooperate with partners on the implementation of the Trans-Caspian Gas Pipeline, the Ministry of Foreign Affairs said in a statement. The report said that recently, reports have begun to appear in a number of international media regarding the possibilities of implementing a project for the supply of Turkmen natural gas in the western direction. The reports mentioned construction of a gas pipeline along the bottom of the Caspian Sea in order to transport Turkmen natural gas to European markets (the Trans-Caspian Gas Pipeline).
Deepening partnership with the EU
Ambassador of Turkmenistan to Belgium Sapar Palvanov and President of the European Commission Ursula von der Leyen discussed increasing cooperation between Turkmenistan and the EU in Brussels at the end of July.
Discussion of partnership with Hungary
President of Turkmenistan Serdar Berdimuhamedov met with Hungarian Prime Minister Viktor Orban during his visit to Budapest at the end of August. During the meeting, the sides discussed the expansion of the Turkmen-Hungarian partnership in a number of areas. Particular attention was paid to the development of cooperation in political and diplomatic, energy, industrial, transportation and communication sectors, as well as in the field of sports.
Signing the protocol with DABS
Turkmenistan's Turkmenenergo State Electric Power Corporation and the Afghan Da Afghanistan Breshna Sherkat (DABS) energy company signed a joint protocol on the transmission of electricity to the Noor Al-Jihad Substation in the Afghan province of Herat. The Turkmen side was represented by officials of the technical department and international projects, while the Afghan side was represented by the CEO of the company. Prior to the protocol's signature, DABS and the Turkmen delegation had bilateral discussions.
Low-carbon technologies from the EERA
Ambassador of Turkmenistan to Belgium Sapar Palvanov and Secretary General of European Energy Research Alliance (EERA) Adel El Gammal discussed potential areas of cooperation in the field of low-carbon technologies. During the meeting, the parties discussed the possibilities of cooperation between EERA and research institutes of Turkmenistan, which are actively working on development and implementation of low-carbon technologies.
Prospects of TAPI, TAP projects
The TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline and the TAP (Turkmenistan-Afghanistan-Pakistan) power transmission line will not only satisfy Pakistan's energy needs on a long-term basis, but will also open up new opportunities for regional cooperation, Ambassador of Turkmenistan to Pakistan, Atadjan Movlamov said. The ambassador made the remark at a meeting with the President of the Faisalabad Chamber of Commerce and Industry (FCCI) of Pakistan Khurram Tariq. According to Movlamov, the 1,830-kilometer-long gas pipeline has a design capacity of 33 billion cubic meters of gas per year, and TAP will help meet Pakistan's electricity needs.
Interest of South Korean companies
Leading South Korean companies strive to actively participate in the implementation of oil and gas as well as petrochemical projects in Turkmenistan. This was noted by Prime Minister of the Republic of Korea, Han Duck-Soo, during a meeting with the Speaker of the Mejlis (Parliament) of Turkmenistan, Dunyagozel Gulmanova during her visit to Seoul.
Implementation of TAP with Afghanistan
Turkmenistan and Afghanistan discussed implementation of the Turkmenistan-Afghanistan-Pakistan (TAP) power transmission project. This issue was discussed during the meeting of the Head of Turkmen Energy Ministry’s International Electricity Projects Department in the TAP direction Myrat Artykov, with the Acting Minister of Energy and Water of Afghanistan, Mullah Abdul Latif Mansoor. During the meeting, the sides touched upon the modernization of the Nur-al-Jihad substation located in the Herat province. At the same time, they stressed the need for a trilateral meeting on the implementation of the TAP project in order to complete it as soon as possible.
Processing of raw materials by foreign companies
Companies that were previously allowed only to extract oil and gas in Turkmenistan under the terms of licenses received permission at the end of November to process raw materials into petrochemical and gas chemical products, including LNG. This decision was due to the amendments and additions made to the Law of Turkmenistan 'On Hydrocarbon Resources'.
Getting another gas inflow
Specialists of Turkmenistan's Turkmengeology State Concern received a new industrial inflow of natural gas at the end of November at production well No. 312 of the Galkynysh field with a daily flow rate of more than 1.7 million cubic meters of natural gas.
Gas inflow from Tagtabazar field
Turkmenistan's Turkmengaz State Concern received a new industrial inflow of natural gas at the end of November at production well No. 29 of the Tagtabazar field. The 1,940-meter-deep well was supposed to produce about 226,400 cubic meters of natural gas daily.
Obtaining certificate from German institute
Two new gas turbine installations for electricity production, commissioned at the Turkmenbashi Oil Refining Complex, have been awarded a quality certificate by the Fraunhofer Institute for Energy Economics and Energy Systems Technology (Germany). The certificate was presented personally by the adviser of the Institute, Professor Harald Apel during the groundbreaking ceremony of another energy project of Turkmenistan, a new combined-cycle power plant with a capacity of 1,574 MW. Certificates were awarded to two new gas turbine units of the complex with a total capacity of 70 MW.
Agreement with Iranian companies
Turkmenistan's Turkmenenergo State Electric Power Corporation has signed an agreement with Iranian companies on financing the Turkmen part of the Mary (Turkmenistan) - Mashhad (Iran) power transmission line. The agreement was signed with the Iranian 'Tawanir' and 'Sanergy Pishro Export and Energy Promotion' companies. The document was signed at a meeting of the Intergovernmental Turkmen-Iranian Commission for Economic Cooperation in Ashgabat.
Partnership with SOCAR
Azerbaijan's State Oil Company (SOCAR) and Turkmengaz, Turkmenistan's energy concern, have reviewed joint exploration and development of hydrocarbon resources. The issue was discussed at the meeting within the framework of Azerbaijani Economy Minister Mikayil Jabbarov's visit to Turkmenistan, where SOCAR's staff was also present. The talks centered on enhancing collaboration in the energy sector, jointly exploring and developing hydrocarbon resources, and the potential implementation of various projects.
Deepening partnership with China
Turkmenistan and China have reached an agreement on expanding the sphere of energy cooperation and strengthening bilateral relations. This agreement was reached during a meeting of a high-ranking delegation of Turkmenistan with Vice Premier of the State Council of the People's Republic of China Ding Xuexiang in Beijing. The Turkmen side stated that Ashgabat and Beijing have achieved fruitful results in cooperation in the gas sector, adding that Turkmenistan is ready to continue to deepen bilateral energy cooperation and expand the comprehensive strategic partnership between the two countries.
Contracts with Kawasaki
The Turkmenhimiya State Concern and the Japanese Kawasaki Heavy Industries corporation signed two contracts during the visit of the Turkmenistan's economic delegation to Japan. The contracts are aimed at the implementation of projects for the maintenance of the world's first gasoline production plant from natural gas in the Ahal region of Turkmenistan.
Guarantees from Pakistan in TAPI project
The Government of Pakistan has decided to extend the operation of the Foreign Investment Promotion and Protection Act (FIPPA), a special legislative regulation, to Turkmenistan's investments in the TAPI gas pipeline project. This step is aimed at increasing the financial attractiveness of the project in the eyes of international creditors, the cost of which is estimated at $10 billion and which will transport natural gas from Turkmenistan to Pakistan through Afghanistan and India. Turkmenistan will have 85 percent of the participation in the project, and Afghanistan, Pakistan, and India will each have 5 percent.