Ï Turkmenistan’s fuel and energy sector: a new phase of diversification
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Turkmenistan’s fuel and energy sector: a new phase of diversification

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When visiting the construction site of the plant that will produce gasoline from natural gas, located in Derveze Etrap in Ahal Velayat, on September 16, President of Turkmenistan Gurbanguly Berdimuhamedov approved the location of the large-scale plant that will produce liquid fuel from natural gas. The Turkmen leader emphasized that the construction of this kind of industrial facilities was a key vector for further diversification of Turkmenistan’s fuel and energy sector. The development of the gas chemical industry is aimed at boosting the production of high quality gas products and increasing their share in exports to world markets.

The plant that will produce liquid fuel from natural gas has the design capacity to process 3.5 billion cubic metres of ‘blue fuel’ and produce 1,691 million tons of fuel per year.

Seeking to integrate into the world economy, Turkmenistan has firmly established itself among dynamically developing countries. Recent years have been marked by the adoption of a number of crucial decisions aimed at enhancing the economic strength of the country and improving the standard of living of citizens.

In his speech at the Elders Council on September 10, President Gurbanguly Berdimuhamedov dwelt upon the implementation of the industrial development programme of Turkmenistan for the period till 2030. The programme is designed to ensure the most efficient use of abundant natural resources and increase the export potential of the national economy through the development of modern industrial infrastructure and high-tech facilities that produce a wide range of products that are competitive in global markets.

In his keynote speech, the Turkmen leaders specified the promising areas of development of the leading sector of the national economy that is playing today a major role in generating the gross domestic product in the export structure of the country.

The Turkmen leader noted that though colossal reserves of natural gas were available, the work on diversification of hydrocarbons export to foreign countries would be completed after the implementation of Turkmenistan-Afghanistan-Pakistan-India gas pipeline project and the projects for supplies of natural gas from Turkmenistan to European countries.

Furthermore, specific measures are to be taken to diversify the oil and gas industry and build large-scale industrial facilities that specialize in processing natural gas, including those for the gas chemical, chemical and power industries.

Thus, a key priority of the energy strategy of Turkmenistan will be shifted from exports of raw materials to exports of finished products through introduction of scientific and technological advances, modernization of the petrochemical industry and construction of gas processing plants and oil refineries.

For example, Turkmenbashi complex of oil refineries has become Central Asia’s largest producer of high-octane gasoline, aviation kerosene, hydrotreated diesel fuel, petroleum coke, industrial lubricants and liquefied gas through the fundamental reconstruction and modernization.

The flagship of Turkmenistan’s petrochemical industry will reach new frontiers in the near future. The amount of oil that can be refined at the complex of oil refineries is to increase to 10.5 million tons per year and the intensity of hydrocarbons processing is to rise to 95 per cent to meet the highest international standards. In particular, the construction of the ELDAD-HT-7 crude oil distillation units, the high-octane gasoline production plants and the polypropylene film production plant at Turkmenbashi complex of oil refineries is nearing completion. The projects to be implemented include the plants that produce hydrogen-treated diesel fuel and remove sulphur compounds by treating gasoline with hydrogen and delayed coking and catalytic cracking units that produce hydrogen, among others.

Industrial facilities designed to process natural gas open up ample opportunities for various sectors of the national economy. Last year, the construction of the gas chemical plant that has the capacity to produce 386,000 tons of polyethylene and 81,000 tons of polypropylene per year was launched in Kiyanly village, located on the Caspian Sea coast. This project received the special award of the TXF (Great Britain) as one of the ten top projects funded by export credit agencies in Europe and Eurasia in 2014. Polyethylene and polypropylene production will be based on the latest impurities deep removal technologies and the unique production schemes which will ensure the manufacturing of environmentally friendly products meeting the highest international standards. Another product produced at the complex of oil refineries – polyethylene – has the excellent export prospects. It can be used to manufacture a variety of pipes and consumer goods.

The plant that produces gasoline from natural gas is under construction in Ovadandepe in Ahal Velayat. It is equipped with state-of-the-art and will convert 1.782 billion million cubic metres of natural gas and produce 600,000 tons of A-92 gasoline per year meeting the Euro-5 standard.

The plant will be the world’s first gas chemical facility that produces environmentally friendly high-quality fuel from natural gas. It is to be put into operation in 2018 and create about 800 new jobs.

The chemical industry is a quite promising area for natural gas processing and chemical industries. In October 2014, the complex of the ammonia and carbamide plants was put into operation in Mary town. The high-tech industrial facilities worth US$ 1 billion were built by the Turkish company Renaissance. The Japanese companies Kawasaki Plant Systems Ltd. and Sojitz Corporation designed the project, delivered equipment and provided technical consultation. The plants have the capacity to produce 400,000 tons of ammonia and 640,000 tons of carbamide per year.

Another carbamide plant is currently under construction in Garabogaz town in Balkan Velayat. It has the capacity to produce 1.155 million tons of carbamide per year.

Seeking to intensify and diversify natural gas processing and increase the share of gas products in exports, Turkmenistan will be able not only to significantly expand its position on the market of primary energy sources, such as natural gas and crude oil, but also take a worthy place on the more lucrative market of gas and chemical products.