Dear All,
We would like to draw your attention to a new investment project currently being implemented in Turkmenistan: The private Turkmen company Hazar güýji will start the construction of an ammonia, urea, and carbon black production plants in the Balkan province (W. Turkmenistan) in partnership with Turkmen state and Chinese companies. The production capacity of the plant will be 1200 tons of ammonia and 1950 tons of granular urea per day. The Chinese “Chengda Engineering Co., Ltd” will act as the general contractor for the design and supply of equipment for this project. Kellogg Brown & Root International (USA) is the licensee for the production of ammonia and Stamicarbon (Netherlands) – for the production of urea. The plant will process 450-500 million cubic meters of natural gas per year.
As noted at the investment forum in Dubai back in April, Turkmenistan is focusing on the deep processing of natural gas, which in the long term may become dominant in the country’s economy. In the near future, several more chemical gas utilization plants are planned to be built in order to manufacture high-added value goods that are in demand on world markets. Other areas of investment, which will be presented at the upcoming OGT conference in October include the attraction of investment to offshore Blocks No. 21 and 23, West Cheleken, optimization of production from mature fields, and next phase development of the supergiant Galkynysh field, which is the largest onshore gas field in the world. Please also see the list of the latest news regarding the Energy sector of Turkmenistan, including the latest high-level appointments below.
The OGT-2023 International Conference and Exhibition provides a wonderful opportunity to network with leading international and national oil companies, attend the discussion of the pressing issues connected with the energy sector, and meet with the senior management of the Turkmen energy sector in order to discuss new investment opportunities.
The organizing committee looks forward to hosting you in Ashgabat! For more information on the Conference & Expo visit the event website www.ogt-turkmenistan.com.
The latest news regarding the Turkmen energy sector includes:
1. The President of Turkmenistan, Serdar Berdimuhamedov, appointed new heads of the state agencies and ministries at the Friday meeting of the Cabinet of Ministers on the results of work done for the past six months, the official Turkmen media reported. President dismissed Rejepmyradov Hajimuhammet from the post of Minister of Energy of Turkmenistan for shortcomings in his work and appointed Annageldi Saparov to the position, dismissing him from the post of Deputy Minister of Energy of Turkmenistan. During the meeting, President Berdimuhamedov relieved Niyazly Niyazlyyev, Chairman of the State Concern "Turkmenhimiya" (Turkmen Chemistry), of his post. Instead, Dovrangeldi Sapbaev was appointed to this position.
2. The private Turkmen company Hazar güýji, together with Turkmen state and Chinese companies, will implement two projects in the west of Turkmenistan – the construction of an ammonia and urea production plant and carbon black production plants in the Balkan province. The production capacity of the plant will be 1200 tons of ammonia and 1950 tons of granular urea per day. The Chinese company “Chengda Engineering Co., Ltd” acts as the general contractor for the design and supply of equipment for this project. Kellogg Brown & Root International (USA) is the licensee for the production of ammonia and Stamicarbon (Netherlands) – for carbamide. The site for the construction of the plant was chosen taking into account the availability of raw materials. The plant will consume 450-500 million cubic meters of natural gas per year.
3. Iranian Energy Minister Ali-Akbar Mehrabyan said that Iran would soon start exchanging electricity with Russia through Azerbaijan, the ISNA news agency reported on Sunday. Iran is considering two routes, one through Azerbaijan and the other through Armenia and Georgia, to exchange electricity with Russia, Mehrabyan told ISNA, noting that Iran is in final negotiations to start projects. According to the minister, the Azerbaijani route involves a less complicated process, since Iran and Azerbaijan have synchronized their energy networks to the necessary extent. Mehrabyan stressed that Iran is also seeking to connect its energy system with the networks of other countries in the region in order to ensure the stability of the electricity supply throughout the year. Iran is currently exchanging electricity with Iraq, Turkiye, Armenia, Azerbaijan, Turkmenistan, Afghanistan and Pakistan, he said, adding that Iran is seeking to increase the number of such transactions.
Source: Orient. tm
4. The Seydi Petroleum Refining Plant (SPRF) in Lebap province of Turkmenistan processed more than 227.4 thousand tons of crude oil in January–June 2023, the official Turkmen media reported on Thursday. The crude oil processing plan set for this period was implemented by 105.6 per cent. About 80.1 thousand tons of gasoline, more than 55.1 thousand tons of diesel fuel, about 14 thousand tons of heavy vacuum kerosene, and about 9.7 thousand tons of road bitumen were produced at SPRF in the first six months of the year.
5. From January to April 2023, Azerbaijan's import of Turkmen kerosene for jet engines amounted to 3.97 thousand tons. This is reported by Trend with reference to the State Statistics Committee of Azerbaijan. The total cost of importing jet fuel from Turkmenistan exceeded 1.44 million US dollars. During the reporting period, Azerbaijan also purchased 3.89 thousand tons of gas oil from Turkmenistan for a total amount of 3.14 million US dollars.
6. The Organization of the Petroleum Exporting Countries (OPEC) predicts that in 2024 the global demand for black gold will grow by 2.2 million barrels per day. This is stated in its Monthly report on the oil market. Oil demand is expected to reach 104.25 million barrels per day next year. The energy group raised its forecast for 2023 to 2.4 million barrels per day. This is about 0.1 million barrels more than last month, amounting to 29.4 million barrels per day. According to the organization, global economic growth in 2023 will remain unchanged. At the same time, the initial forecast of economic growth in 2024 is expected to be 2.5%. According to the OPEC report, key oil-consuming countries, including China and India, along with some other emerging economies in Asia, will maintain their level of economic growth.
7. Saad bin Sherida Al-Kaabi, Minister of State for Energy and CEO of Qatar Energy, announced at the 20th International LNG Conference in Canada that 40% of the total amount of new LNG that will enter the market by 2029 will be received from Qatar Energy. Al-Kaabi noted that with the growth of the world's population, there will be a constant need for natural gas as a cleaner fossil fuel for the operation of factories and electricity generation, New Arab reports. Al-Kaabi called for a responsible dialogue on the transition to low-carbon energy, stressing that the "demonization" of oil and gas has led to a significant decrease in investment in the sector, 25% over the past ten years. He added that the market has not witnessed a significant impact of this inevitable downturn, but stocks cannot be easily replenished, and investments in this sector lag behind market needs. The Minister explained his point of view on the talks about switching to low-carbon energy and the need to abandon oil and gas. "We cannot be selfish and demand the abolition of oil and gas when a billion people do not have basic electricity," he said.
Many thanks,
Turkmen Forum team
