Oil and Gas Sector

The large-scale investment projects being implemented in Turkmenistan's oil and gas sector are a result of the energy policy pursued under the leadership of President Serdar Berdimuhamedov. This policy aims at the comprehensive development and integration of one of the key sectors of the economy into the international energy system. These projects hold not only significant economic value but also play an essential role in ensuring regional and global energy security.

A primary aspect of the national strategy is the efficient utilization of the sector’s vast potential, strengthening its position in the global market by meeting the demand for high-quality, competitive, and environmentally friendly products. This includes introducing energy-saving technologies, promoting renewable energy sources, and fostering business partnerships with leading oil and gas companies and reputable financial institutions.

During an expanded meeting of the Cabinet of Ministers held on July 12, 2024, the head of state emphasized the priority tasks facing the fuel and energy complex (FEC). Highlighting the oil and gas sector as a cornerstone of the national economy, the President of Turkmenistan underscored the need to further adopt modern technologies and take comprehensive measures to increase the production capacity of industry enterprises.

Additionally, President Serdar Berdimuhamedov instructed to engage foreign companies in exploring and developing energy resources in the Caspian Sea zone and directed Turkmen geologists to continue exploratory work to identify new promising hydrocarbon deposits. The emphasis was placed on actively incorporating international experience in these processes.

To address global environmental issues and foster broad cooperation with countries, international organizations, and major companies, Turkmenistan has adopted several national programs aligned with its accession to the Paris Agreement. These programs include measures to reduce greenhouse gas emissions. Nationwide initiatives to mitigate the negative impacts of methane emissions into the atmosphere are being implemented, focusing primarily on transitioning to modern, environmentally friendly, and resource-saving technologies.

In recent years, the country has significantly increased its power generation capacity with a series of modern natural gas-powered plants integrated into the national energy distribution system.

Today, the gas industry forms the backbone of Turkmenistan's FEC, accounting for over half of the country's industrial production. Intensive work is underway in the sector to discover, explore, and develop new deposits using advanced technologies across all stages of the production process—from exploration and exploitation to transportation, storage, and refining of hydrocarbons to deliver final products to consumers.

The development of innovative production facilities for hydrocarbon processing, diversification of the FEC’s export potential, accelerated industrial development of new deposits, and creation of a multi-vector pipeline system for energy resource supplies are critical for achieving high growth rates in the fuel and energy complex. This also affirms Turkmenistan’s status as a leader in the international energy community.

The construction of the Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline serves as a vivid example of these efforts. The project aims not only to supply Turkmen gas to Asian countries but also to become a pivotal factor in strengthening economic partnerships and promoting peace and stability in the region.

In September 2024, the foundation was laid for significant projects in the Mary region, which aim to bolster regional energy security, enhance the welfare of neighboring nations, and create a sustainable economic environment. These projects include the construction of the Serhetabat–Herat section, part of the TAPI project, and the establishment of the "Şatlyk-1" gas compressor station.

The ambitious tasks assigned to the FEC, such as identifying and developing new resource-rich deposits, increasing hydrocarbon production and processing volumes, creating diversified routes for delivering Turkmen energy resources to global markets, and utilizing innovations in oil and gas production, are being systematically addressed by the State Concerns “Türkmennebit” and “Türkmengaz” as well as the State Corporation “Türkmengeologiýa.”

In line with achieving the nationally adapted Sustainable Development Goals, key directions of ongoing work include strengthening partnerships in energy resource processing, exchanging advanced technologies under new environmental standards, and attracting investors to supply advanced specialized equipment. The implementation of environmentally safe production processes and compliance with ecological requirements based on the careful treatment of ecosystems are fundamental factors driving the transformation of Turkmenistan’s FEC.

The country has also committed to achieving net-zero greenhouse gas emissions by 2030. This commitment is being pursued through initiatives such as transitioning to green energy technologies, building hybrid solar-wind power plants, and actively participating in international efforts like the Global Methane Pledge and digital platforms under the UN Environment Programme.

Source: State News Agency of Turkmenistan