Country Intelligence Report: Turkmenistan

Turkmenistan is poised to be a major provider of gas to the east via Turkmenistan-Afghanistan-Pakistan-India Pipeline (TAPI). The proposed Trans-Caspian pipeline could be a viable option to transport to the west, but due to the loggerhead over delimitation of the Caspian Sea between the littoral states, this major project remains a pipe dream for now.

By Eric R. Eissler January 5, 2015

 

Basic Facts:

  • Capital: Ashgabat
  • Population: 5,171,943 (CIA World Factbook)

Quick Figures:

  • Fourth largest gas reserves in the world (BP Statistical Review)
  • Exports in 2013: $17.13 billion (CIA World Factbook)
  • Main export partner: China with 69.6% (CIA World Factbook)

Hydrocarbons: All figures sourced from the BP Statistical Review

  • Natural gas reserves end of 2013 : 17.5 tcm
  • Natural gas production in 2013: 62.3 bcm
  • Oil reserves end of 2013: 600 million barrels of oil
  • Oil production in 2013: 231,000 bopd
  • Major gas trade partners in 2013: 27.4 bcm to China, 4.7 bcm to Iran

Technology Usage: In Ovadan-Depe, a plant focused on the conversion of natural gas into synthetic gasoline will be constructed. It will be based on Danish Haldor Topsoe’s TIGAS (Topsoe Improved Gasoline Synthesis) technology and will become the first full-scale, large commercial facility using this technology.

“TIGAS makes it possible to produce high-quality, high-value gasoline from natural gas, shale gas, associated gas, coal, pet coke, or even biomass. The plant in Turkmenistan is extremely important to us, because it is the first large-scale project in the world where we can showcase how our technology can help a nation with huge natural gas reserves monetize their natural resources by diversifying beyond conventional gas markets into transportation fuels,” said Bjerne S. Clausen, CEO and president at Haldor Topsoe A/S.

Major Companies Working in the Country: Turkmenneft and Turkmengaz are the state-owned oil and gas producers, respectively. Foreign companies are allowed to work in the country via production sharing agreements or joint ventures. The major players are China National Petroleum Corporation (CNPC), Dubai’s Dragon Oil, Italy’s Eni, and Malaysian state-owned Petronas.

Major Projects:

  • Turkmenistan–Afghanistan–Pakistan–India Pipeline (TAPI): Expected to be completed in 2017, this major pipeline will bring natural gas from the Caspian Sea Basin to energy-hungry India.
  • Galkynysh gas field: The largest gas field in world with 3.7 tcf in-situ, the project site covers an area of 1.06 million square meters and has major development projects underway. EPC contracts for the three treatment plants at the gas field were awarded to Petrofac for $3.4 billion, consortium of LGI and Hyundai Engineering for $1.48 billion, and CNPC for $3.13 billion. Gulf Oil and Gas FZE won a $1.15 billion EPC contract to develop the production wells.
  • Gas processing plant EPCs are growing as the country builds more to handle an increasing production rate. South Korea’s LG and Hyundai signed contracts to build two new plants in mid-2014 worth $4 billion.

 

Turkmenistan is poised to be a major provider of gas to the east via TAPI. The proposed Trans-Caspian pipeline could be a viable option to transport to the west, but due to the loggerhead over delimitation of the Caspian Sea between the littoral states, this major project remains a pipe dream for now. 

-Eric R. Eissler, associate editor, Oil & Gas Engineering, CFE Media, eeissler@cfemedia.com  

Original content can be found at Control Engineering.