Turkmenistan's Energy Landscape: A Legacy of Soviet Systems and Limited Development

Turkmenistan has seen negligible development in its energy base since independence, with minimal foreign investments made to meet future demand. The country relies heavily on a welfare system, inherited from the Soviet era, to cater to local energy needs. Despite presidential decrees aimed at providing free basic necessities to citizens, shortages of power, fuels, and water are commonplace. The country produces sufficient oil and gas to meet its domestic needs, with gas being the primary component of local consumption. However, gas production has declined drastically, falling by 50.9% in 1997 compared to 1996.

Key Takeaways:

Turkmenistan produces approximately 99,000 barrels of oil per day.
Gas production declined drastically from 74 million tons of oil equivalent in 1987 to 14.5 mtoe in 1997, a decrease of 50.9%.
The country has two refineries with a total capacity of 236,500 barrels per day, located at Chardzhou and Turkmenbashi.
LPG demand is estimated at 60,000 t/y, with local refineries and a gas processing plant meeting part of this demand.
Hydro-electricity consumption has been erratic, with no consumption since 1993.
Nuclear power is not a component of the Turkmen energy mix.
The government plans to develop the Tuarkyrskoye coal deposit in the north-western part of the country, with estimated reserves of 800 million tons.
Iran has participated in a feasibility study to develop the first section of the deposit, containing estimated reserves of 25 million tons.

Statistics:

Oil production: approximately 99,000 b/d.
Gas production: declined from 74 million tons of oil equivalent in 1987 to 14.5 mtoe in 1997, a decrease of 50.9%.
LPG demand: estimated at 60,000 t/y.
LPG production: 18,000 t/y from local refineries and 10,000-12,000 t/y from the gas processing plant at Turkmenbashi.
Coal reserves: estimated at 800 million tons in the Tuarkyrskoye deposit.

Sources:

BP Statistical Review of World Energy, June 1998.