At the extended meeting of the Cabinet of Ministers held on July 9, President Gurbanguly Berdimuhamedov identified a number of urgent tasks for the further development of the oil and gas complex. The head of 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, to increase the efficiency of geological exploration and drilling, including those carried out in promising coastal zones of the Caspian Sea, as well as to attract large oil and gas companies and investors.

As you know, the oil and gas industry is one of the key sectors of the national economy, which is assigned an important role in the implementation of large-scale programs for the industrialization of Turkmenistan, building up the country's export potential. Significant investments have been made in the energy sector, which made it possible to introduce large new fields into commercial development, including in the Turkmen sector of the Caspian Sea, on the right bank of the Amyderya, the world's largest natural gas field “Galkynysh”.

The production capabilities of oil refineries have grown, and the petrochemical industry has received a powerful impetus for development. The country has mastered the production of polypropylene and polyethylene, base oils, hydrotreated diesel fuel, and synthetic gasoline. Such modern industrial complexes specializing in deep gas processing as a polymer plant in Kiyanly, a plant for the production of gasoline from natural gas in Ahal velayat, and a plant for the production of nitrogen fertilizers “Garabogazkarbamid” have been built.

Building the potential of the gas industry and diversifying energy supplies to world markets are of strategic importance for the domestic economy. A number of projects have also been successfully implemented in this area, including the construction of the Turkmenistan-China interstate gas pipeline. At present, the construction of the Turkmen section of the Turkmenistan-Afghanistan-Pakistan-India gas pipeline is being completed.

It should be noted that over the six months of this year, about 42 billion cubic meters of natural and associated gas were produced in Turkmenistan, which is almost 8 billion cubic meters more than in the same period of 2020. The growth rate was 123.4 percent. More than 22.8 billion cubic meters were exported, 37 percent more than in the first half of last year. The main volume of environmentally friendly fuel was supplied to the People's Republic of China.

In this regard, we recall that the Central Asia-China gas pipeline is designed to supply 40 billion cubic meters of Turkmen natural gas per year, and its throughput capacity is 55 billion cubic meters. Starting last year, PJSC “Gazprom”, purchasing gas from Turkmenistan, supplies it to Uzbekistan: in 2020 - 0.9 billion cubic meters, and in the first quarter of 2021 - 1.5 billion cubic meters.

In general, all this confirms the forecast of experts of the Gas Exporting Countries Forum (GECF Global Gas Outlook 2050) that Uzbekistan and Kazakhstan will gradually reduce the volume of “blue fuel” exports, since all gas produced in these countries will be required for their internal needs. And this opens up new opportunities for increasing the export of Turkmen gas to world markets.

Along with this, the demand for “blue fuel” in the domestic market of the country is growing. As already noted, this is due to the commissioning of numerous industrial and social facilities, as well as plans for the further development of the oil and gas industry, electric power, and the chemical industry.

Thus, in Dashoguz velayat, near the Yylanly gas compressor unit, it is planned to build a plant for the production of polyvinyl acetate from ethane extracted from natural gas, which is produced at the Central Karakum and Nayip fields in Balkan velayat, a plant for the production of methyldiethanolamine, the feedstock for which will be ethylene obtained at a polymer plant in Kiyanly, and at a gasoline plant in Ahal - methanol and isobutane production units. Currently, negotiations are underway with foreign companies to invest in these projects.

The constructive foreign policy pursued by President Gurbanguly Berdimuhamedov, which is based on the neutral status of our country, opens up wide opportunities for foreign partners to participate in the implementation of large investment projects.

An example of this are investment loans provided by the PRC for the development of the “Galkynysh” field, as well as by financial organizations from Japan and the Republic of Korea for the construction of gas chemical complexes in Kiyanly, Ahal and Garabogaz, financial support of the TAPI project by the Islamic Development Bank and the Saudi Development Fund.

Major investments in exploration and development The Chinese National Oil and Gas Corporation (“Bagtyyarlyk” contract territory), “Petronas Charigali” (Turkmenistan) company, which operates in the “Block-I” contract territory in the Caspian Sea, “Dragon oil” company from the UAE ( “Cheleken"), Italian company “Eni” (territory “Nebitdag”).

Among the new projects that are important for the development of the oil and gas industry is the construction of wells in the “Galkynysh” field, which will be carried out by “CNPC Chuanging Drilling Engineering Company Ltd.” The project is designed for 30 months, payment for the company's services will be carried out at the expense of the annual supply of 17 billion cubic meters of natural gas to China for three years.

Cooperation with the Russian company “Tatneft”, which provides services to increase the flow rate of oil wells in the Goturdepe field, is expanding. Along with the overhaul of the “underground wells”, the company is preparing to start drilling sidetracks. The main advantage of this technology is that it allows new productive areas to be involved in the extraction of raw materials. At the same time, the cost of work is much lower than the cost of building a new vertical well.

In general, all this is important for the further successful implementation of the energy strategy of Turkmenistan, one of the key aspects of which is attracting foreign investments and advanced technologies to the oil and gas industry, mutually beneficial cooperation in this area with representatives of the world business community.