X Turkmenistan International Gas Congress (TGC 2019) has started work in Avaza National tourist zone. Big specialized forum, which is to give new impulse to international cooperation in energy sphere, was organized by the State Concern Türkmengaz.
For many years, the Congress serves as a platform for discussion of the conditions and perspectives of development of the world gas industry. High status and prestige of this major event is fully indicated by current anniversary forum of the TGC 2019, which has brought together around 450 delegates from 30 countries including from European Union, USA, UAE, Japan, China, the Republic of Korea, Turkey, India, Afghanistan, Pakistan, CIS and other countries. It includes top managers of big petroleum, service and consulting companies, representatives of profile ministries and departments, competent international organizations and financial structures, diplomatic and scientific circles as well as mass media.
The opening ceremony of the forum took place in fashionable Berkarar Hotel in the morning. Gas – Fuel of Future was the theme of plenary session, under which representatives of structural divisions of fuel and energy complex of Turkemnistan introduced potential partners with key directions of energy strategy and perspective plans of development of gas industry of the country.
As is known, Turkmenistan holds the fourth position in the world by gas reserves, which are estimated by more than 50 trillion cubic meters. According to the data, which are published annually in the OPEC statistic reports, our country is on the third place by gas production volumes in Europe and CIS.
Having significant energy potential, Turkmenistan implements large-scale projects for establishment of multidimensional export infrastructure of its energy carriers. This is visually indicated by transnational gas line Turkmenistan – China, which embodied the implementation of the idea of restoration of the Silk Route that used to connect the peoples of Europe and Asia for thousands of years.
Construction of Turkmenistan – Afghanistan – Pakistan – India gas line (TAPI) is another strategic important initiative. President Gurbanguly Berdimuhamedov highlights that new energy route, which will provide long-tterm supply of natural gas to the largest countries of Southeast Asia, will give strong impulse to economic development of the region, will support the solution of social and humanitarian issues and the strengthening of peace and stability.
The participants of the session were presented with the information on the course of industrial development of the biggest land super gigantic gas deposit Galkynysh, which territory is more than 4,000 square kilometres.
According to the data received from geological surveys including by 2-D and 3-D seismic, average production capacity of carbonate column is more than 500 meters with 84.5 percent ratio of gas saturation. At present moment, operation fund of the field has more than 40 wells, which debit is two million cubic meters of gas per day in average.
At the same time, there is high opportunity that the field goes beyond the borders of existing territory in northwest and southeast directions. After additional information, the capacity of gas reserves of Galkynysh Field can be re-estimated higher.
Complex of facilities for production of 30 billion cubic meters of ale gas per year has been commissioned at the field. Similar complexes with the same production capacity, which will feed the TAPI gas line, are under construction.
In addition, new trends in the world gas industry and various aspects of development of sustainable energy sphere in Asia have been discussed at the plenary session. Regional Director of British Gaffney, Cline & Associates Petroleum Company John Gaffney and the UN Permanent Coordinator in Turkmenistan Elena Panova made reports on this subject.
According to the Forecast of Development of the World Economy until 2040 from British Petroleum Corporation (BP World energy Outlook, 2019), the world demand on natural gas will grow steadily. Power energy, construction, transport, petrochemical industry and other industrial spheres will be drive engines of this growth.
At the same time, high rates of gas consumption are expected in in the next 20 years in China, India and other Asian countries. Production of liquefied gas, wind and solar energy will also receive an active development. Environmental policy pursued by many world countries, transit to use of eco-friendly energy, to which President Gurbanguly Berdimuhamedov orients scientific and technical potential of Turkmenistan, are the main factors in this area.
Addressing the participants of the Congress, the UN Permanent Coordinator in Turkmenistan highlighted that the United Nations considers such major meetings as an opportunity to appeal to national world partners and to remind that the development can be sustainable only in combination with the ecology.
Having initiated to call for the Summit on the Measures for Climate Change in September 2019, the UN Secretary General Antonio Guterres called this programme as the main issue of our time and its solution as the turning point is the history.
Having noted that the implementation of the Paris Treaty, practice of successful projects in the sphere of low-carbon development, mitigation of impacts and adaptation to the climate change on local levels, Mrs Panova expressed the confidence that Turkmenistan has something to present to the world community both in ecological as well as in sustainable development sphere.
In her speech, the UN Representative has also highlighted the subjects of interstate cooperation in energy sphere. The TAPI project is the best example of the fact that Turkmenistan uses its hydrocarbon reserves for peace and stable development of neighbouring regions, Mrs Panova said, having highlighted that the pipelines unite the countries and bring stability to regions they run across. It makes positive effect on entire nations, which life becomes better due to oil, gas and power energy, which was repeatedly mentioned by Turkmen leader from high tribunes of competent international organizations and forums.
This subject was continued in the next session of the Forum named TAPI: Pipeline of peace and stability where detailed information about the work made by the participants of this major project, its financing, etc. has been presented.
In particular, it is planned to accomplish the construction of Turkmen section of energy line. According to completed information, the length of 33 billion cubic meters per year gas line will be 1,840 kilometres including 205 kilometres on the territory of Turkmenistan. At present time, preparation to construction of the pipeline in Afghanistan and Pakistan is carried out.
Representative of the Consortium TAPI Pipeline Company Limited, Staate Bank of Foreign Economic Affairs of Turkmenistan, Islamic Corporation for Investment Insurance and Export Crediting, Allen & Overy LLP, Credit Suisse, Bilï¬nger Tebodin Middle East Ltd have mentioned the progress achieved in the promotion of the TAPI project in their speech.
As it is highlighted by President Gurbanguly Berdimuhamedov, the construction of the TAPI pipeline is very important in the context of peaceful restoration of Afghanistan, its social and economic infrastructure, solution of such urgent issues as creation of new work places, which in its turn will support the improvement of life level of the population. This idea of Turkmen leader runs as a red line across all reports of the spokesmen at the session TAPI: Pipeline of Peace and Stability. It is also important that in addition to certain volumes of gas, Afghanistan will receive significant commercial benefit for transit of Turkmen energy carriers across its territory.
In general, the first phase of the project is planned to be accomplished in 2020. The second phase provides the construction of compressor stations along the pipeline, which will increase its throughput capacity.
The TAPI is a grandiose project for entire region, Special Assistant of the Prime Ministers of Pakistan on Oil Nadim Baber highlighted, having noted that in the beginning of the year, Turkmenistan and Pakistan have signed several documents including the General Terms of the Agreement with the Government of receiving state between the Government of Pakistan and TAPI Pipeline Company Limited Joint stock Venture. There is not much left until we would be able to start practical implementation of the project, Nadim Baber said.
In the afternoon, the work of the Forum was continued by the session Pipeline Projects: Key Elements of Energy Security and Stability. Heads and leading specialists of Scientific and Research Institute of Natural Gas of the State Türkmengaz Concern, GazpromVNIIGAZ Open Joint Stock Venture, Oxford Institute of Energy Studies, Argus Media international information and analytical agency and other made reports at the session.
It was mentioned that issues of development of the world energy industry and creation of favourable investment climate for the implementation of the projects in this strategic section are closely connected with the problem of provision of reliability and protection of international supplies of energy carriers. First of all, this is related to the transportation of natural gas as delivery of this fuel to the world markets is carried out by pipelines.
In this context, constructive character of the initiatives of the President of Turkmenistan aimed at the formation of new global architecture of energy security, which is an important factor of stable development of the states, universal peace and stability, has been highlighted. The Resolutions on Reliable and stable transit of energy carriers and its role in provision of sustainable development and international cooperation, which were adopted twice by the UN general Assembly, visually indicate the appropriateness of these proposals in the view of modern realities.
Deputy Director of the Economics and Technology Research Institute of Chinese National Petroleum Corporation Liu Chaoquan presented natural gas market review in China.
It was mentioned that consumption of natural including liquefied gas is growing fast in the People’s Republic of China. According to the BP forecast, the demand on gas in China will grow more than twice in the next 20 years. At present time, gas supplies to the PRC by pipelines make around 40 percent from total volume of gas import. In this context, the supplies of natural gas from Turkmenistan are very important for provision of energy security of China.
As is known, the Central Asia – China pipeline includes three parallel lines (A, B and C) of 1,830 kilometres each. It is connected with 10,000 kilometres West – East gas line at the territory of the PRC. At present time, gas from Central Asia is supplied to 25 provinces, autonomous regions, large cities and special administration district of Hong Kong.
More than 263 billion cubic meters of gas have been exported to China from Central Asia from the moment of putting the pipeline into operation in December 2019. At the same time, Turkmenistan provides more than 80 percent of gas supplies.
In addition, technical aspects of construction of export gas line in Caspian Sea have been discussed during the session. Nowadays, when everything is clear with the legal status of Caspian Sea, this subject became actual again. At present time, Turkmenistan reviews the capability of gas supplies in western directions to Europe. At the same time, there are technical capabilities of gas export to Iran. Supplies of gas to Russia by Central Asia – Centre pipeline according to the short-term contract with Gazprom have been resumed. Middle-term contract for five years is under negotiation at present time.
Therefore, attraction of big investments and modern technologies for development of hydrocarbon resources and implementation of joint international projects in this sphere are important conditions and the main factor of perspective and intensive development of oil and gas industry of Turkmenistan and the country has all conditions for this.
The first day of the Forum was completed with the session on the theme Monetization of gas: The way to diversification and growth. The spokesmen mentioned that Turkmenistan carries out large-scale work for opening of new facilities for oil refining and gas processing producing various petrochemical goods required both in local and foreign markets.
For example, Garabogazkarbamid Plant with production capacity of 1,155,000 tons of carbamide fertilizers has been put into operation in Caspian Region last year. The main part of the production of the facility is going for export.
Polymeric plant has been opened in Kiyanly settlement. This super modern petrochemical complex has been built by the work order of the State Concern Türkmengaz by LG International Corporation and Hyundai Engineering (The Republic of Korea) with the participation of TOYO Engineering Corporation (Japan). Production facilities of the plant are able to process 5 billion cubic meters of gas per year and to produce 386,000 tons of high-density polyethylene and 81,000 tons of polypropylene.
President of Turkmenistan Gurbanguly Berdimuhamedov and President of the Republic of Korea Moon Jae-in paid great attention to this project at the high-level meeting in April this year. Significant package of documents including on cooperation in energy sphere has been signed by the outcomes of the talks in Ashgabat.
For example, the agreement on the establishment of joint venture for sale of production of Kiyanly petrochemical complex in the world including Asian markets has been reached between NaPeCo National Petroleum Corporation and LG Intenrational.
In addition, the Ministry of Textile Industry of Turkmenistan and Korean Institute of Industrial Technologies will study the capability of production of textile synthetic fibre from the polymers produced by the plant in Kiyanly. Therefore, full chain from production and processing of raw material to making and sale of commodities with high added value will be made in gas industry.
At present time, synthetic gasoline production plant is under completion in Kiyanly. Provided with latest equipment, the facility will process 1,782,000,000 cubic meters of natural gas and produce 600,000 tons of Euro 5 standard A92 gasoline as well as diesel fuel and liquefied gas per year.
According to the Programme of social and economic development of the country in 2019 – 2025, the diversification of oil and gas industry will be continued. Construction of new petrochemical complexes for production of synthetic gasoline, rubber and polystyrene, methyldyethanolamine, polyvinyl acetate and other polymers are among the projects to be implemented.
High growth rates of national economy, large-scale programmes for development of industrial complex, import substitution and improvement of export potential of the country open wide opportunities for further development of beneficial cooperation with foreign business circles, the participants highlighted.
It is worth mentioning that reports of representatives of number of the world companies such as Shell Global Solution International B.V., Hyundai Engineering, Haldor Topsoe, Exxon Mobil Corporation and other have been presented on the first day of work of the Congress.
The participants of the forum had an opportunity to visit polymeric plant in Kiyanly, production facilities of PETRONAS Carigali (Turkmenistan) and Turkmenbashy International Port.
X International Gas Congress will continue its work on the next day. Bilateral meetings between top managers of oil and gas complex of Turkmenistan and foreign partners will take place under the forum.