Oil and gas complex of Turkmenistan: investment in infrastructure and innovation

20:11 29.07.2021 29410


 TDH.  07/28/2021

Important aspect of the policy pursued by President Gurbanguly Berdimuhamedov is the effective use of the potential of the oil and gas industry to ensure the dynamic pace of development of the country.

 At an expanded meeting of the Cabinet of Ministers held on July 9, the head of the state instructed to take the necessary measures to increase the production of crude oil and gas condensate through the use of modern technologies and methods, timely repair oil wells, and ensure uninterrupted delivery of commercial oil to refineries.

 It was noted that in order to regulate natural gas production and increase the reliability of providing consumers with this product, it was necessary to actively approach the issue of building underground gas storage facilities.

 Among the top-priority tasks was also the increase in the efficiency of geological exploration and drilling operations carried out by the State Corporation «Turkmengeology», including those carried out in the promising coastal zones of the Caspian Sea.

 Pointing out that large oil and gas companies and investors should be involved in this activity, President Gurbanguly Berdimuhamedov ordered to submit relevant proposals in this regard within two months.

 By creating a favorable investment climate, all conditions for successful business, Turkmenistan strives for long-term, mutually beneficial cooperation in the energy sector.  Significant funds are invested in the development of the oil and gas complex, and foreign investments are attracted for these purposes.  Today our country has established productive contacts with dozens of countries around the world, large foreign companies with advanced technologies, as well as with financial institutions and international organizations.  The fundamental principles of this partnership are the economic efficiency of joint projects, their social significance and environmental safety.

Illustrative example of this is the fruitful interaction in the oil and gas sector of Turkmenistan and China, which meets the national interests and development priorities of the two friendly states.  A great deal of positive experience has been accumulated in this area of ​​many years of joint work, which resulted in large-scale projects aimed at diversifying the supply of Turkmen «blue fuel» to world markets and strengthening the export potential of gas industry.

 Among them is the construction of the Turkmenistan-China transnational gas pipeline, which embodied the idea of ​​re-creating the Great Silk Road, which for millennia connected the peoples of Eurasia, exploration and development of deposits on the right bank of the Amu Derya river, etc.

Important step in expanding productive cooperation was the participation of Chinese companies in the development of the world's largest gas field «Galkynysh», the discovery of which significantly strengthened the status of our country as a world energy power.

 In addition, for the implementation of the project to commission this unique storeroom, in accordance with intergovernmental agreements, the State Development Bank of China provided a loan to the State Concern «Turkmengas». Currently, these borrowed funds have been fully repaid.

 In this regard, President Gurbanguly Berdimuhamedov emphasized, despite the difficult situation in the world economy, thanks to the effective measures taken, Turkmenistan maintained a dynamic pace of development, financial and economic stability.  The country has been successfully implementing large-scale programs to modernize and diversify the economy, made it innovative and transfer to a digital platform, and create high-tech industrial production.

 The ongoing transformations open up broad prospects for building up interaction with all interested foreign partners, including in the oil and gas complex, one of the key sectors of the national economy.

 In terms of proven reserves of natural gas, Turkmenistan occupies one of the leading places in the world; today it is one of the main suppliers of «blue fuel» in the Central Asian region.  Due to its favorable geopolitical position and the richest hydrocarbon deposits, our country has great potential for increasing gas exports in various directions, including European and Asian markets.  The policy implemented in this area is based on openness, predictability, and mutual responsibility.

 Continuing the topic, we note that the raw material base and infrastructure of the transnational highway Central Asia-China are currently being strengthened.  New fields are gradually being commissioned on the Bagtyyarlyk contract area, the exploration, construction and development of which under the Production Sharing Agreement is carried out by the China National Petroleum Corporation (CNPC).

 A significant step in ensuring reliable supplies of Turkmen natural gas to the PRC on a long-term basis was the commissioning in January of this year of a new powerful gas compressor station at the Malay field.

 One of the key vectors for the development of the domestic oil and gas complex and attracting foreign investment is also the development of hydrocarbon resources of the Turkmen sector and the coastal zone of the Caspian Sea.  On the basis of Production Sharing Agreements, for many years such world famous companies as Dragon Oil (UAE), Petronas (Malaysia), Eni  (Italy) and others have been successfully operating here.

 New prospects for realizing the energy potential of the Caspian region were opened by the Memorandum of Understanding signed in January of this year between the Government of Turkmenistan and the Government of the Republic of Azerbaijan on joint exploration, development and development of hydrocarbon resources of the Dostluk field in the Caspian Sea.  A regular meeting of the Turkmen-Azerbaijani working group is being held in Ashgabat these days, where issues on the implementation of the agreements reached are being discussed.

 Maintaining the level of oil and gas production in our country is largely ensured through the use of effective technologies and methods of field development.  And in this area, cooperation with foreign companies is actively developing.

 Thus, Public Joint Stock Company TATNEFT (Republic of Tatarstan, RF) proved to be a reliable partner, with which an additional agreement was concluded last year for the provision of services for workover of wells and enhanced oil recovery at the Goturdepe field.  Thus, the previously valid contract has been extended until 2028.  The return on investment is carried out, including due to the additionally produced oil from rehabilitated wells.

 In accordance with the economic strategy of President Gurbanguly Berdimuhamedov, focused on diversifying the economy, increasing the volume and range of products produced in the country, in recent years, modern industrial giants have been commissioned, specializing in the deep processing of hydrocarbon raw materials, including those related to the petrochemical and chemical industries, electric power industry.

 In particular, these are installations for the production of gasoline at the Turkmenbashi complex of oil refineries, a polymer plant in Kiyanly, which produces high-density polyethylene and polypropylene of various grades, as well as the world's first plant for the production of synthetic gasoline from natural gas in Akhal region, built with the participation of  leading companies and banks in Japan and the Republic of Korea.  The demand for the products of these enterprises is growing steadily, and the geography of its export is expanding.

 It should be emphasized that increasing the production capacity of the TCOR became a priority.  Today, thanks to the reconstruction and technical re-equipment of the flagship of the Turkmen petrochemistry, the complex accounts for a quarter of the volume of industrial products produced in the country.  Its main assortment is high-octane unleaded motor gasolines, aviation, lighting and technical kerosene, liquefied petroleum gas, various types of diesel fuel, technical lubricating oils and polypropylene, as well as electrode calcined coke, road and construction bitumen, etc.

 At present, a new unit for delayed coking and tar deasphalting is being installed at the Turkmenbashi complex of oil refineries, which will increase the depth of oil refining.  In addition, the construction of two gas turbine power units with a design capacity of 70 Megawatt/hour is underway, which is designed to ensure a reliable supply of electricity to existing and new facilities.

 This year, marked by the 30th anniversary of the independence of the Motherland, in addition to the produced packaging films with a thickness of 20, 25 and 30 micrometers, the TCOR has launched the production of white pearlescent polypropylene film of various thicknesses used for packing sweets and packing gifts.  An annual production of 2 thousand tons of this type of film is envisaged, which will be supplied to the domestic and foreign markets.

 In accordance with the Program for the Development of the Oil and Gas Industry of Turkmenistan until 2030, it is planned to build new gas chemical complexes in various regions of the country, including the production of isobutane, methanol, polyvinyl chloride, polyvinyl acetate, etc.  Special attention will be paid to the possibilities of establishing the production of hydrogen, which is being developed as a strategy for the «fuel of the future» in the developed countries of the world.  In general, all this will help to strengthen the innovative component of the economy, to increase the share of products with high added value in exports.

 Thus, the openness of Turkmenistan's foreign policy, consistently implemented by President Gurbanguly Berdimuhamedov, the country's richest natural resources, a favorable investment climate – all this creates truly unlimited opportunities for increasing international cooperation in various fields, including oil and gas.

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