Innovative development of Turkmenistan fuel and energy complex

The Programme of the President of Turkmenistan on Social and Economic Development of the Country in 2018 – 2024 is important document, which implementation is to support the steadfast progress of the Motherland and improvement of Turkmenistan citizens. Speaking at the last session of the Council of the Elders, Leader of the Nation Gurbanguly Berdimuhamedov outlines key vectors of this Programme that stipulates the complex of measures in industrialization, diversification and increase of the export potential of national economy, opening of new facilities for production of import substitutive goods and intensification of the market relations.

It was highlighted that active investment policy will be pursued and the financing of existing and new projects of regional and international significance will be continued in designated period.

It is planned to allocate more than 240 billion manats for social and economic development of the country in 2018 – 2024 while 159.9 billions will be allocated for oil and gas complex.

According to the priorities of the Programme, the targets and objectives of national fuel and energy complex, which enters new stage of innovative development like other branches, were defined. Together with the increase of production and export of oil and gas and expansion geological explorations for consolidation of material base of the industry, the utmost attention is to be paid to technical and technology rearmament of energy sector facilities, establishment of modern infrastructure, science intensive productions making wide variety of oil and gas products.

Generally, all of these is to provide maximally efficient use of natural resources for stabe economic growth, consolidation of energy independence and security of the country and its position in the world’s energy markets.

International cooperation in energy sphere is an important vector of economic strategy of Turkmenistan, which is the fourth in the world by proven natural gas reserves. The policy realized in this sphere is built on the principles of the openness, predictability, mutual responsibility and consideration of the interests of producers, transporters and consumers.

The constructive approach to mutually beneficial partnership and international initiatives of President Gurbanguly Berdimuhamedov aimed at the formation of new structure of global energy security received wide support of the world community. It is visually indicated by the Resolution on Reliable and Stable Transit of Energy Carriers and its Role in Provision of Sustainable Development and International Cooperation, which was adopted twice by the United Nations General Assembly.

Large-scale projects for establishment of multidimensional energy infrastructure realized in our country serve to the consolidation of national, regional and international energy security and to activation of economic relations in Eurasian space. According to interstate agreements, throughput capacities of Turkmenistan – China gas line will be increased gradually up to 65 billion cubic meters in the nearest future. The construction of the fourth branch (D) of this largest energy line, which embodied the idea of the revival of the Great Silk Road that connected the nations of the continent for thousands of years, is in the agenda.

Turkmenistan – Afghanistan – Pakistan – India (TAPI) gas main is another strategically important initiative. At present time, the construction of 214-kilometer Turkmen part of the pipeline with throughput capacity of 33 billion cubic meters is carried out rapidly. Technical works related to the realization of this project in Afghanistan and Pakistan are ongoing.

The construction of TAPI, which will provide long-terms supplies of Turkmen gas to the countries of South – East Asia, will give strong impulse to economic development of the region and will support the solution of the issues of social and humanitarian character and consolidation of peace and stability. Particularly, it will give opportunity to create thousands of occupancies, relative electric energy, transport, communication and social infrastructure.

As it has been already mentioned large investments are to be drawn for the formation of powerful industrial complexes in the regions taking into account their specific features under realization of the Programme of the President of Turkmenistan on Social and Economic Development of the Country in 2018 – 2024. The solution of these objectives set by Leader of the Nation Gurbanguly Berdimuhamedov is closely related to the development of oil and gas sphere, which is to provide growing demands of national economy and social sphere in energy carriers and domestic energy communication – oil, gas and power lines, accordingly.

Thus, the construction of different infrastructural facilities along East – West gas line, which united all gas mains in the country into single system two years ago, will be continued. Owing t that, the opportunity to make reverse supplies of gas from Mary Velayat where large deposits like Dovletabad, Malay, Yashlar and Galkynysh are located, to Ahal and Balkan Velayat where number of new industrial plants, factories and social facilities are built.

Besides, large perspectives for further expansion of multilateral beneficial partnership in energy sphere have been opened after commissioning of the East – West gas line. It can also be used for the delivery of Turkmen energy resources to international markets via Caspian region.

The plan of geological and technical activities in 2018 – 2024 – the roadmap for the State Concern Turkmenneft, which operates around 30 deposits including more than 600 oil and gas pools that are on different stages of the development, has been elaborated. Particularly, it stipulates active development of new deposits – Northern Goturdepe, Altyguyi, Uzynada, wide implementation of modern methods for increase of oil output of productive pools in the fields, which are under long operation, active implementation of advanced technologies in overhaul of the wells, etc.

Head of the State gave instruction to expand the scope of geological explorations including the methods of 3-D seismic survey for the improvement of material base of oil and gas industry. The volumes of drilling works, scales of construction of exploration and production wells will be considerably increased. Special attention is to be paid to the study of deep, up to 7 kilometres structures.

It is worth mentioning that Turkmen drillers have big experience in use of highly efficient resource saving technologies including electrical drilling, construction of directional and horizontal wells, which give the opportunity to increase the output of hydrocarbons from productive layers and to develop small and hardly accessible pools. In particular, these modern technologies are widely implemented in the fields of Balkan Velayat.

The projects of intensified industrial development of perspective oil and gas deposits in Turkmen sector and coastal zone of Caspian Sea, in the basin of Amudarya River, Central Karakums as well as super giant Galkynysh field, one of the largest in the world, which reserves together with Yashlar and Garakel deposits are estimated in 27 trillion cubic meters, will be continued.

Recently, the complex of facilities allowing to produce 30 billion export gas per annum has been put into operation there and now, similar complexes, which are to supply TAPI gas line, are under construction. Gas compressor station for this gas main is planned to be built at Malay deposit.

Together with the increase of oil and gas production, establishment of ramified system of transportation of Turkmen gas to the world markets, the great attention is to be paid to the diversification of oil and gas industry, construction of large industrial facilities specialized in processing of hydrocarbon materials including those related to petro chemistry, chemical industry and electrical energy.

Thus, petrochemical complex for production of 386 tons of polyethylene and 81 thousand tons of polypropylene per year coast and carbamide plant for production of 155 thousand tons of carbamide and 640 thousand tons of ammonia will be put into operation in Kianly settlement and the city of Karabogaz on Caspian coast. The construction of the plant for processing of natural gas and production of 600 thousand tons of Euro 5 A-92 gasoline is under completion in Ahal Velayat.

The programme of further development of gas and petrochemical industries has been elaborated based on the analysis of the state of regional and world markets, existing and forecasted demand on petrochemical production. Its perspective directions include the establishment f large polymers production facilities.

In particular, it is planned to reconstruct natural gas processing and liquefied gas production installation at Bagaja deposit in Lebap Velayat and to build petrochemical plant for production of 80 thousand tons of butadiene-styrene rubber and 45 thousand tons of polystyrene per year on its base.

Large investment project is proposed to be developed at the fields in Central Karakums next to gas compressor installation Yilanly in Dashoguz Velayat. It is planned to build the plant for processing of 2 billion cubic meters of gas and processing of 70 thousand tons of liquefied gas per annum. The second phase of the facilities of this enterprise is designed for production of 200 thousand tons of low-density polyethylene per year.

It is planned to build petrochemical complex for production of 200 thousand tons of linear low-density polyethylene, 390 thousand tons of polypropylene, 100 thousand tons of polyvinylchloride, 10 thousand tons of liquefied gas, 10 thousand tons of sulphuric acid, 82 thousand tons of caustic soda in Kiyanly settlement in Balkan Velayat. The facility will also process 1.5 billion tons of natural gas and 117 thousand tons of technical salt per annum.

Besides, it is planned to build the installations for production of liquefied gas, methyldiethanolamine and formaldehyde. This is just a small part of the projects that are planned to be realized by the State Concern Turkmengas in the next ten years under diversification of national fuel and energy complex.

According to the forecast of the experts, the demand on A-95 gasoline and diesel fuel will increase twice by 2030. Following this, the complex of measures for further increase of production capacities of Turkmenbashy Refinery Complex and Seydi Refinery has been developed. It includes the construction of new installations for diesel fuel hydro treatment, catalytic isodewaxing, catalyst cracking of heavy fuels, hydro treatment of secondary gasoline, hydrogen production and other.

At the moment, commissioning of the unit for production of polypropylene film with annual output of 20 thousand tons is carried out at Turkmenabshy Refinery Complex.

At the same time, technical and economic feasibility of benzene production, which is required for extraction of polystyrene and rubbers, is under the study. The construction of the installations of benzene extraction will also allow Turkmen chemists starting production of Euro 5 gasoline and high quality synthetic base oils of 2+ and 3+ groups.

The opportunity of industrial production of graphite of petroleum coke is under development. The first lot of this product has been received from experimental unit assembled at metal works plant in Ovadandepe. The technology was tested by the specialists of ULKE Individual Enterprise and Turkemnnebitonumlery State Company.

It is necessary to mention that graphite and its derivatives are actively used in oil and gas, atomic, metallurgic, chemical and space spheres. It is also required in new technology processes that appeared recently, particularly in biomedical industry, manufacturing of microchips, diode light equipment. These branches are developed in the world fast and it means that the demand in graphite will be growing.

It is also necessary to add that together with the expected structural changes in national economy, it is planned to take organizational technology measures for the economy of natural gas and electric energy, in other words the pursue of targeted energy saving policy. The establishment of free economic zones in the country will give new impulse to beneficial cooperation with the representatives of foreign business circles that own advanced developments in exploration, production and processing of hydrocarbon materials, construction of high technology facilities for oil and gas industry.

Thus, Turkmenistan will not just consolidate its positions in the world energy market as largest supplier of energy carriers but also will change fundamentally the character of its presence in this market by the diversification of trade structure of energy export, active development of new forms of international energy business.

Oil and gas sector will undergo fundamental changes and become modern high technology, efficient, stably developing complex resting upon natural resource, scientific and technical potential of the country and world achievements in this sphere.

Generally, implementation of the strategy f social and economic development of the country in the next years developed by President Gurbanguly Berdimuhamedov and its important component, the oil and gas industry, will serve to considerable consolidation of economic power of the country.