Turkmenistan's energy sector holds significant investment potential, particularly in natural gas, oil, and petrochemicals. As one of the world's leading producers of natural gas, the country is actively working on expanding energy exaports, adopting advanced technologies, and enhancing production efficiency to meet the growing global demand.
By the end of 2024, Turkmenistan’s industrial sector demonstrated steady growth. Natural gas production reached 77.62 billion cubic meters, while oil production amounted to 8.28 million tons. These figures reflect the sector’s stable development and the country’s efforts to modernise infrastructure, diversify supply routes, and strengthen its position in the global energy market.
A major focus of Turkmenistan’s energy strategy is the Turkmenistan-China gas pipeline, a key project that significantly enhances natural gas exports to China, one of the largest energy consumers in the world. Turkmenistan supplies China with more than 30 billion cubic metres of natural gas per year via three lines (A, B, and C) of the Central Asian Gas Pipeline System. Upon completion of the fourth line (D), annual supplies of Turkmen natural gas will reach the contracted 65 billion cubic metres. Additionally, the country is strengthening its energy ties with neighbouring nations through gas supplies to Uzbekistan, further reinforcing regional energy cooperation and creating new avenues for investment. Turkmenistan also has the technical capabilities to export natural gas to Iran, Iraq, and Azerbaijan through the SWAP scheme, as well as the potential for supplying it to the Russian Federation.
The next stage of industrial development is centred on the Galkynysh field, the world’s largest onshore natural gas field, with reserves estimated at 27.4 trillion cubic metres, together with the adjacent Yashlar and Garakol deposits. A phased development strategy has been adopted, designed to ensure long-term, sustainable exploitation of these reserves. Specialists from GaffneyCline and the Natural Gas Research Institute of the State Concern "Turkmengas" have developed a seven-stage plan for Galkynysh’s development, spanning several decades. At present, three plants with a production capacity of 30 BCM of commercial gas per year are successfully operating. The second stage of development aims to meet the planned additional supply of 25 BCM of gas per year to China, with negotiations and contract finalisation currently underway. The third stage is expected to provide 33 BCM of commercial gas per year under the TAPI international gas pipeline project.
Turkmenistan attaches great importance to the implementation of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. On 11 September 2024, construction of the Serhetabat-Herat section commenced, marking a key milestone in the 1,853 km-long project. Once completed, the cross-border pipeline will deliver up to 33 billion cubic metres of natural gas annually from the Galkynysh field to three selection points in Afghanistan, three in Pakistan, and the final selection point on the Pakistan-India border for supplies to the Indian market. Afghanistan has recently achieved a significant milestone in regional energy infrastructure development by successfully laying six kilometers of the Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline within its territory. This progress underscores Afghanistan's commitment to enhancing regional connectivity and economic growth. In addition, Kazakhstan has expressed strong interest in joining the TAPI project. If realised, Kazakhstan's participation could bolster regional cooperation and amplify the pipeline's strategic importance for energy trade across the region. Another key area of growth lines in checmical gas utalisation projects. Turkmenistan is investing in the modernisation of existing gas processing facilities and the construction of new complexes to produce value-added products. This initiative aims to increase the export of high-value products derived from natural gas, opening new markets, and strengthening Turkmenistan’s position as a leading global energy supplier. The country is also focused on optimising gas production at mature fields, ensuring stable production levels while minimising environmental impact. Advanced technologies and efficient management practices are crucial to maintaining the long-term viability of these resources. With its strong emphasis on expanding natural gas exports, developing gas chemistry, and optimising power generation, Turkmenistan presents attractive prospects for investors in the energy sector. The government’s commitment to modernising infrastructure and deploying advanced technologies creates a dynamic and promising investment climate for energy companies worldwide.
Turkmenistan is actively developing its fields in the Turkmen sector of the Caspian Sea and onshore in the west of the country. A number of leading international oil companies, including ENI, Dragon Oil, Petronas and others, are engaged in oil and gas production at contractual territories. The forum TEIF 2025 will highlight investment opportunities in offshore blocks 11, 12, 16, 21 and 23, and optimisations of production at mature fields. Among other strategic projects, gradually implemented by the oil and gas complex of Turkmenistan, are projects for the development of the Turkmenbashi complex of oil refineries and the Seydi oil refinery, aimed at introducing new technologies, improving the quality of manufactured products, increasing their competitiveness and compliance with advanced international standards.
Turkmenistan, country rich in both oil and natural gas, has developed a sub-sector in its economy related to the refining of these resources. The Turkmenbashi oil refinery, the largest of its kind in Turkmenistan, processes over 10 million tons of oil annually. It produces a diverse range of petroleum products, including unleaded gasoline, petroleum coke, asphalt, laundry detergent, hydro-treated diesel, and lube oil. To further enhance its production capacity, Turkmenistan has been actively seeking foreign investments to develop facilities for manufacturing end-user petroleum-based products such as detergents and tires. The refinery exports its products to several countries, including Russia, China, Iran, Afghanistan, Turkey, Pakistan, Tajikistan, and Japan. The Turkmenbashi Complex of Oil Refineries (TCOR), the country’s primary oil refinery, is planning to expand by adding a series of advanced units. These include hydrotreatment units for diesel fractions and gasoline, as well as catalytic cracking and coking units, complete with a hydrogen production facility. This expansion aims to increase the country’s oil refining depth to over 90%, significantly boosting the efficiency and range of products produced. In addition, the Turkmenbashi refinery, along with the Seydi Oil Refinery, is working on constructing several new installations. These will include units for the catalytic cracking of heavy oil residues, a plant for producing high-quality base industrial oils, and more hydrotreatment and hydrogen production facilities. These upgrades will allow the refinery to process heavier oil fractions and improve the quality of the products. The construction of the delayed coking and tar deasphalting units at Turkmenbashi refinery has been completed. This project, led by a consortium of WTL FZE (UAE) and Westport Trading Europe Limited (USA), focuses on processing heavy tar and fuel oil residues. The new units have increased the production of liquefied gas, gasoline, diesel fuel, and petroleum coke, while also creating new jobs. Westport Trading Europe Limited (WTL) from the USA has successfully built a complex of equipment for delayed coking and tar de-asphalting on the territory of the TCOR. The project, with a total cost of 120 million euros, started at the end of 2019 and was completed as scheduled. The operation of the new delayed coking equipment provides an annual production of about 900 thousand tons of raw materials. The annual productivity of tar de-asphalting equipment is at the level of 500 thousand tons. A new atmospheric oil distillation unit with an "ELOU-AT" electrical desalination unit, designed for a capacity of one million tons per year, has been implemented at the Seydi oil refinery. With the launch of the new unit, the Turkmenbashi complex of oil refineries has increased the production of petroleum coke, gasoline, liquefied gas, and high-quality road bitumen. Looking ahead, Turkmenistan's oil and gas development program, which extends until 2030, includes plans to build new gas-chemical complexes. These will produce a variety of chemicals such as linear low-density polyethylene, isobutane, methanol, polyvinyl acetate, liquid chlorine, and sodium sulfate.
The Seydi Oil Refinery, located in the Lebap velayat of Turkmenistan, stands as a cornerstone of the country’s oil and gas industry. As one of the largest and most vital enterprises in the nation, its operations have a profound impact on both the national economy and the broader energy sector. This year, the refinery has made significant strides in enhancing its production capabilities, demonstrating an impressive surge in output, thanks to a comprehensive reconstruction effort that has bolstered its technological and operational capacities. In the first eleven months of 2024, the Seydi Oil Refinery processed a remarkable 431,400 tons of raw materials, surpassing its production target by 9.1%. This accomplishment highlights the efficiency and effectiveness of the refinery’s upgraded infrastructure and operational framework. The total volume of products manufactured at the plant during this period reached 375.7 thousand tons, achieving 102.5% of the production plan and marking a year-on-year increase of over 17,400 tons compared to the same period last year. A key contributor to this success is the remarkable growth in gasoline production. The Seydi Oil Refinery produced 219 thousand tons of gasoline, reflecting a growth rate of 9.6% compared to the previous year. This achievement underscores the plant’s ability to meet rising domestic and foreign demand for high-quality gasoline with varying octane levels. As a crucial fuel source, gasoline plays a pivotal role in the energy mix, making this increase in production particularly noteworthy. Alongside gasoline, the refinery has also made substantial progress in the production of other essential oil products. Diesel fuel production reached 109.6 thousand tons, while 23.6 thousand tons of heavy vacuum gas oil and more than 19 thousand tons of road bitumen were produced. These oil products are in high demand both domestically and internationally, further contributing to the refinery’s impressive performance and its role as a major player in global energy markets. The sustained success of the Seydi Oil Refinery is also a testament to the visionary leadership and strategic direction of Turkmenistan’s government, particularly the head of state, who has consistently prioritized the development of the country’s oil and gas industry. The government’s commitment to strengthening the material and technical base of the refinery has been evident in the successful completion of large-scale projects aimed at radically reconstructing and modernising the enterprise. Turkmenistan's strategic initiatives in expanding its energy infrastructure and diversifying export routes underscore its pivotal role in the global energy market. The nation's commitment to modernising its oil refineries, such as the Turkmenbashi and Seydi complexes, and developing the Galkynysh field, positions it as a key player in meeting the increasing global demand for energy. These efforts not only enhance Turkmenistan's economic growth but also present substantial opportunities for international investors seeking to engage in a dynamic and evolving energy landscape. By fostering regional cooperation through projects like the TAPI pipeline and strengthening ties with major energy consumers, Turkmenistan is poised to significantly influence energy trade across the Eurasian continent and beyond. Building upon this dynamic trajectory and acknowledging the immense potential for mutually beneficial partnerships, Turkmenistan is actively engaging with international investors to further propel its energy sector forward. In a strategic move to specifically cultivate interest from Southeast Asia, Turkmenistan will be prominently featured at the upcoming Turkmenistan Economic Investment Forum – TEIF 2025 in Malaysia. This strategically chosen location underscores Turkmenistan's keen interest in attracting investors from this rapidly growing economic region, recognising Southeast Asia's increasing energy demands and its appetite for diverse investment opportunities. To this end, the TEIF 2025 will serve as a crucial platform to showcase the rich hydrocarbon resource base of Turkmenistan, with the plenary session partially dedicated to illuminating key areas such as existing transnational gas pipelines and ambitious new projects, alongside highlighting new investment projects within Turkmenistan's oil and gas industry. Moreover, the forum will delve into granular detail through dedicated panel discussions, with the highly anticipated first session, titled "New investment opportunities in Turkmenistan’s Energy sector: Natural gas and Monetisation," and session 3’s panel discussion, "Investment opportunities in the Turkmenistan’s Energy sector: Oil and petrochemicals," positioned to be of prime importance for prospective investors seeking focused insights into specific sectors of Turkmenistan's energy landscape.