Oil and natural gas refining in Turkmenistan

Last updated

Turkmenistan, a country rich in both oil and natural gas, has developed a sub-sector in its economy related to the refining of those two sorts of fossil fuels. [1]

Contents

Oil refining

There are two oil refineries in Turkmenistan, located in the cities of Türkmenbaşy and Seýdi. [2] [3]

The Türkmenbaşy oil refinery is the larger of the two refineries, [4] with a capacity of more than 10 million tons of oil per year. The refinery produces a range of products, including unleaded gasoline, petroleum coke, asphalt, laundry detergent, hydro-treated diesel, and lube oil. The Turkmen government has demonstrated interest in attracting foreign investment to build factories producing end-user petroleum based products such as detergents and tires. The refinery reported that its products are exported to Russia, China, Iran, Afghanistan, Turkey, Pakistan, Tajikistan, and Japan. [2]

Turkmenistan has invested USD 900 million in a number of projects designed to help increase the country’s refining capacity by 95 percent by 2030. The projects include the construction of a facility for coking (carbonization) and tar de-asphalting with annual capacity of 900,000 and 500,000 tons, respectively. The government of Turkmenistan also constructed a facility to produce asphalt with an annual capacity of 38,000 tons as well as a facility to produce polypropylene film and an oil refinery with a capacity of 3 billion tons per year. Turkmenistan has commissioned a feasibility study regarding the construction of a new oil refinery in its Balkan province. [2]

Natural gas refining

Sysmic and geological research was conducted in the Caspian Sea with the help of the United States in 2000, which showed the presence of 11,000,000,000 tons of oil and 5,500,000,000,000 cubic metres (1.9×1014 cu ft) of gas on the coast of the country. [5] Historically, Turkmenistan has been a heavy exporter of natural gas, exporting nearly 80% of its raw material produced. [6] As of the 2010s, however, the country has increasingly faced a difficult time in increasing its exports of natural gas. [7] In response, the government plans to refine natural gas to make chemicals such as methanol, synthetic rubber, and materials for paint. In October 2018, the government opened a chemical facility in the Balkan Region of Turkmenistan to create polyethylene and polypropylene, in contract with LG International, Toyo Engineering, and Hyundai Engineering. The facility cost US$3.4 billion to build, and is capable of converting 5,000,000,000 cubic metres (1.8×1011 cu ft) of natural gas into 81,000 tons of polypropylene as well as 386,000 tons of polyethylene every year. [2]

The government also created a facility to convert natural gas to gasoline, in the Ahal Region of Turkmenistan. It was first conceived in 2013 by a contract including Türkmengaz, Rönesans Türkmen, and Kawasaki Heavy Industries. It cost US$1.7 billion to build, and was opened in 2019. The plant is capable of converting 1,785,000,000 cubic metres (6.30×1010 cu ft) of natural gas into 600,000 tons of A-92 gasoline every year. [2]

In addition to gasoline, the government has sought to convert natural gas to liquid petroleum. A new facility was announced in April 2016 by the Turkmenistan Ministry of Oil & Gas, created by a contract that includes South Korean LG International Corp., Hyundai Engineering Co, and the Japanese Itochu Corporation. It is projected to convert 3,700,000,000 cubic metres (1.3×1011 cu ft) into 1.1 million tons of diesel fuel and over 400,000 tons of naphtha every year. The country has plans to build additional gas to liquids plants in the coming years. [2]

For decades, Turkmenistan had a dispute with Azerbaijan regarding the ownership of a large oil and gas block located inside the exclusive economic zone of both countries in the Caspian Sea. In 2021, the two countries signed a memorandum of understanding in Ashgabat to conduct joint exploration and field development activities. [8] Following the 2022 Russian invasion of Ukraine and the subsequent gas dispute, Turkmenistan was considered as an alternative supplier to Europe. [9]

In July 2022, the Turkmenistan started extraction from a new gas plant in the Mary Region. [10]

Related Research Articles

<span class="mw-page-title-main">Economy of Turkmenistan</span> National economy

The economy of Turkmenistan continues to recover from the 2014 downturn in hydrocarbon prices, but remains "in the grip of its worst economic crisis since the immediate post-independence period, driven in part by low gas prices, the suspension of gas exports to Russia between 2016 and 2019...and poor harvests." Former President Gurbanguly Berdimuhamedow at a session of the Cabinet of Ministers on March 11, 2021, called the rate of GDP growth unsatisfactory. When discussing the 2021 government budget, he noted that 2021 would be "as difficult" a year as 2020 had been.

Transport in Turkmenistan includes roadways, railways, airways, seaways, and waterways, as well as oil-, gas-, and water pipelines. Road-, rail-, and waterway transport fall under the jurisdiction of the Ministry of Industry and Communications.

<span class="mw-page-title-main">Oil refinery</span> Facility that processes crude oil

An oil refinery or petroleum refinery is an industrial process plant where petroleum is transformed and refined into useful products such as gasoline (petrol), diesel fuel, asphalt base, fuel oils, heating oil, kerosene, liquefied petroleum gas and petroleum naphtha. Petrochemicals feedstock like ethylene and propylene can also be produced directly by cracking crude oil without the need of using refined products of crude oil such as naphtha. The crude oil feedstock has typically been processed by an oil production plant. There is usually an oil depot at or near an oil refinery for the storage of incoming crude oil feedstock as well as bulk liquid products. In 2020, the total capacity of global refineries for crude oil was about 101.2 million barrels per day.

<span class="mw-page-title-main">Turkmenistan</span> Country in Central Asia

Turkmenistan, also known as Turkmenia, is a landlocked country in Central Asia, bordered by Kazakhstan to the northwest, Uzbekistan to the north, east and northeast, Afghanistan to the southeast, Iran to the south and southwest and the Caspian Sea to the west. Ashgabat is the capital and largest city of the country. The population of the country is about 6 million, the lowest of the Central Asian republics. Turkmenistan is one of the most sparsely populated nations in Asia. Citizens of Turkmenistan are known as Turkmenistanis, Turkmenians or Turkmens.

<span class="mw-page-title-main">Ahal Region</span> Region of Turkmenistan

Ahal Region is one of five provinces of Turkmenistan. It is in the south-center of the country, bordering Iran and Afghanistan along the Kopet Dag Range. Its area is 97,160 km2 (37,510 sq mi) and population 939,700.

<span class="mw-page-title-main">Balkan Region</span> Region of Turkmenistan

Balkan Region is the westernmost of the five regions of Turkmenistan. Clockwise from north it borders Kazakhstan, Uzbekistan (north); two provinces of Turkmenistan (east), Iran (south) and the Caspian Sea (west). The capital city is Balkanabat, formerly known as Nebit Dag. The region's boundaries are identical to those of the former Krasnovodsk Oblast' , a Soviet-era province of the Turkmen Soviet Socialist Republic. This oblast was liquidated and restored repeatedly in the 20th century, concluding with its abolition in 1988. However, the administrative boundaries of the region were restored in 1991 when Balkan Region was established.

<span class="mw-page-title-main">Türkmenbaşy, Turkmenistan</span> City in Balkan Province, Turkmenistan

Türkmenbaşy, formerly known as Krasnovodsk, Kyzyl-Su, and Shagadam is a city in Balkan Province in Turkmenistan, on the Türkmenbaşy Gulf of the Caspian Sea. It sits at an elevation of 27 metres. The population was 86,800, mostly ethnic Turkmens but also Russian, Armenian and Azeri minorities. As the terminus of the Trans-Caspian Railway and site of a major seaport on the Caspian, it is an important transportation center. The city is also the site of Turkmenistan's largest oil refining complex.

<span class="mw-page-title-main">Bayway Refinery</span>

Bayway Refinery is a refining facility in the Port of New York and New Jersey, owned by Phillips 66. Located in Linden and Elizabeth, New Jersey, and bisected by Morses Creek, it is the northernmost refinery on the East Coast of the United States. The oil refinery converts crude oil into gasoline, diesel fuel, jet fuel, propane and heating oil. As of 2007, the facility processed approximately 238,000 bbl/d (37,800 m3/d) of crude oil, producing 145,000 bbl/d (23,100 m3/d) of gasoline and 110,000 bbl/d (17,000 m3/d) of distillates. Its products are delivered to East Coast customers via pipeline transport, barges, railcars and tank trucks.

<span class="mw-page-title-main">Asaluyeh</span> City in Bushehr, Iran

Asalouyeh is a city and capital of Asaluyeh County, in Bushehr Province, Iran. At the 2006 census, its population was 4,746, in 875 families.

<span class="mw-page-title-main">Trans-Caspian Gas Pipeline</span> Proposed subsea pipeline

The Trans-Caspian Gas Pipeline is a proposed subsea pipeline between Türkmenbaşy in Turkmenistan, and Baku in Azerbaijan. According to some proposals it will also include a connection between the Tengiz Field in Kazakhstan, and Türkmenbaşy. The Trans-Caspian Gas Pipeline project is purposed to transport natural gas from Turkmenistan and Kazakhstan to European Union member countries, circumventing both Russia and Iran. It is also considered as a natural eastward extension of Southern Gas Corridor. This project attracts significant interest since it will connect vast Turkmen gas resources to major consumer geographies as Turkey and Europe.

<span class="mw-page-title-main">National Iranian Gas Company</span>

The National Iranian Gas Company (NIGC) was established in 1965 as one of the four principal companies affiliated to the Ministry of Petroleum of the Islamic Republic of Iran with 25,000 million Rials initial capital.

The Galkynysh Gas Field, formerly known as Iolotan gas field or South Yolotan – Osman field, is a large natural gas field near Ýolöten in Mary Province of Turkmenistan. It is the world's second-largest gas field.

<span class="mw-page-title-main">QatarEnergy</span> Qatari state-owned oil company

QatarEnergy, formerly Qatar Petroleum (QP), is a state owned petroleum company of Qatar. The company operates all oil and gas activities in Qatar, including exploration, production, refining, transport, and storage. The President & CEO is Saad Sherida al-Kaabi, Minister of State for Energy Affairs. The company's operations are directly linked with state planning agencies, regulatory authorities, and policy making bodies. Together, revenues from oil and natural gas amount to 60% of the country's GDP. As of 2018 it was the third largest oil company in the world by oil and gas reserves. In 2020, the company had total revenues of US$21bn, a net income of US$7.9bn, and total assets of US$116bn. In 2021, QatarEnergy was the fifth largest gas company in the world.

Gökdepe District is a district of Ahal Region, Turkmenistan.

<span class="mw-page-title-main">Türkmengaz</span> Turkmen national gas company

Türkmengaz is the national gas company of Turkmenistan. From January to November 2020, Türkmengaz had US$4.13bn in revenue. It is the largest gas company in Central Asia. The chairman of the company, with rank of minister of state, is Batyr Amangeldiyevich Amanov.

<span class="mw-page-title-main">Petroleum industry in Iran</span> Overview of the petroleum industry of Iran

Iran is an energy superpower and the petroleum industry in Iran plays an important part in it. In 2004, Iran produced 5.1 percent of the world's total crude oil, which generated revenues of US$25 billion to US$30 billion and was the country's primary source of foreign currency. At 2006 levels of production, oil proceeds represented about 18.7% of gross domestic product (GDP). However, the importance of the hydrocarbon sector to Iran's economy has been far greater. The oil and gas industry has been the engine of economic growth, directly affecting public development projects, the government's annual budget, and most foreign exchange sources.

<span class="mw-page-title-main">Clyde Refinery</span> Crude oil refinery in Clyde, New South Wales, Australia

The Clyde Refinery was a crude oil refinery located in Clyde, New South Wales, Australia, operating between 1925 and 2013. At the time of its closure it had a refinery capacity of 85,000 barrels per day (13,500 m3/d) and was the oldest operating oil refinery in Australia. It was operated by Shell Refining (Australia) Pty Ltd and owned by the Royal Dutch Shell.

<span class="mw-page-title-main">Tema Oil Refinery</span>

The Tema Oil Refinery (TOR) is one of two crude oil refineries in Ghana.

Niger has a long history of petroleum exploration dating back to the 1970s. However, it is only recently in 2011 that the petroleum industry of Niger was born with the opening of the Agadem oilfield and the Soraz refinery near Zinder. The oil and gas extracted from the Agadem field are processed at the Soraz refinery and products are primarily for domestic consumption. Since the beginning of the oil extraction, it appears that the reserves have been underestimated: from an estimate of 324 million barrel reserves in 2008, it is believed that reserves are three times higher, near 1 billion barrels in 2013. With the increase in reserves, Niger anticipates an increase in its production from 20,000 to 80,000 barrels per day by 2016 with 60,000 barrels per day for exports via Chad and Cameroon.

Tüpraş Kırıkkale Oil Refinery is an oil refinery in Kırıkkale, central Turkey. It is owned and operated by Tüpraş, the country's only oil refiner with four refineries.

References

  1. ↑ "Oil and Gas". Turkmenistan – Country Commercial Guide. [International Trade Administration, U.S. Department of Commerce. August 2022. Archived from the original on 18 August 2022. Retrieved 21 September 2022.PD-icon.svg This article incorporates text from this source, which is in the public domain .
  2. 1 2 3 4 5 6 "Oil and natural gas refining". Turkmenistan – Country Commercial Guide. International Trade Administration, U.S. Department of Commerce. August 2022. Archived from the original on 17 February 2022. Retrieved 21 September 2022.PD-icon.svg This article incorporates text from this source, which is in the public domain .
  3. ↑ Minerals Yearbook Area Reports: International 2009 Europe and Central Asia. Vol. III. Washington, D.C.: United States Government Printing Office. 2011. pp. 46.1–46.5. ISBN   9781411329775. Archived from the original on 23 September 2022. Retrieved 21 September 2022.PD-icon.svg This article incorporates text from this source, which is in the public domain .
  4. ↑ Country Profile: Turkmenistan, February 2007 (PDF). Washington, D.C.: Library of Congress – Federal Research Division. 2007. p. 9. Archived (PDF) from the original on 23 September 2022. Retrieved 21 September 2022.PD-icon.svg This article incorporates text from this source, which is in the public domain .
  5. ↑ "Türkmenistan petrol ve gaz zengini". NTV (in Turkish). 13 May 2000. Archived from the original on 9 October 2022. Retrieved 9 October 2022.
  6. ↑ Sagers, Matthew J. (1994). "Oil and Gas Production in the Amu Dar'ya Basin of Western Uzbekistan and Eastern Turkmenistan". International Geology Review. 36 (5): 416–434. Bibcode:1994IGRv...36..416S. doi:10.1080/00206819409465469. Archived from the original on 23 September 2022. Retrieved 21 September 2022– via Taylor and Francis Online.
  7. ↑ Oxford Analytica (2017). "Turkmenistan cannot sell more gas despite new finds". Expert Briefings. Emerald Expert Briefings. oxan–db (oxan–db). doi:10.1108/OXAN-DB220904. Archived from the original on 13 May 2021. Retrieved 21 September 2022– via Emerald Insight.
  8. ↑ Mehmet Kara (28 January 2021). "Türkmen gazı Hazar'ı aşacak!". Dünya (in Turkish). Archived from the original on 28 January 2021. Retrieved 9 October 2022.
  9. ↑ "Petrol ve gaz cenneti! Dünyanın gözü burada: Türkiye taşıyacak". Star (in Turkish). 28 September 2022. Archived from the original on 9 October 2022. Retrieved 9 October 2022.
  10. ↑ "Türkmenistan'da yeni doğal gaz kuyusundan ilk gaz çıkarılmaya başlandı". Anadolu Agency (in Turkish). 29 July 2022. Archived from the original on 9 October 2022. Retrieved 9 October 2022– via TRT.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.