Turkmenistan economic development and discussion

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Saudi Arabia may support the financing of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Trend reports with reference to the Saudi newspaper Al-Riyadh.

Minister of Energy, Industry and Mineral Resources of Saudi Arabia Khalid Al-Falih said that the company Saudi Aramco believes that gas reserves concentrated in Turkmenistan are among the biggest ones in the world.

The company is studying the issue of supporting financing for the project of a giant pipeline from Turkmenistan, which will be connected to India through a number of countries, the minister added.

“Saudi Arabia’s support of gas exports from Turkmenistan to India is the biggest shift in world trade of liquefied natural gas (LNG) for India,” the minister said.

Al-Riyadh notes that Saudi Arabia as a whole promotes joint investments in the countries of the Caspian region in the sectors of petrochemistry, oil, gas, mining, renewable energy and others.



Earlier it was reported that Saudi Aramco is considering the possibility of investing in the production of oil and gas in Turkmenistan.

The King of Saudi Arabia Salman bin Abdulaziz Al Saud in his letter to President of Turkmenistan Gurbanguly Berdimuhamedov a year ago drew attention to the fact that the Saudi Fund for Development supported the construction of the TAPI gas pipeline.

Construction of the Turkmen section of the TAPI gas pipeline has been underway since December 2015, work has recently begun on the Afghan section. This year is scheduled to begin work in Pakistan.

Construction of the Turkmen section of TAPI was launched in December 2015, while the Afghan section in February 2018. Pakistan plans to start the work on its pipeline section this year.

The total length of the pipeline, with a capacity of 33 billion cubic meters of gas per year will be 1,840 kilometers. The length of the Turkmen section will be 205 kilometers.

Then, this pipeline will pass through the Afghan cities of Herat and Kandahar (816 kilometers), through the cities of Quetta and Multan across Pakistani territory (819 kilometers), and reach the settlement of Fazilka in India.
 

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Turkmenistan is carrying out reconstruction of the Turkmenbashi-Garabogaz-Kazakhstan highway and the bridge across the Garabogazgol Bay, Trend reports with reference to the local TV channel Altyn Asyr.

It is expected that a 225 km long road with a two-way traffic and a width of 22.5 meters will be laid from Turkmenbashi city to the border with Kazakhstan. There are also plans to erect a bridge across the Garabogazgol Bay with a length of 354 meters and a width of 21 meters.



"The construction of a highway and a bridge to the Turkmen-Kazakh border will allow increasing trade, the volume of freight and passenger traffic between the western and northern regions of Turkmenistan, as well as neighboring states," the Turkmenistan State News Agency reported.

The section of this road in the direction of Kazakhstan will become continuation of the Ashgabat-Turkmenbashi high-speed multimodal highway. At the same time, the project of the road bridge across the Garabogazgol Bay is intended for the transportation of products of the urea plant recently built in Garabogaz city.
 

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Russia’s Chelyabinsk Pipe Plant (ChelPipe) Group PJSC has signed a contract for shipping more than 150,000 tons of large-diameter pipes (LDP) to Turkmenistan’s Turkmengas state concern for the construction of the linear part of the TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline, Trend reports referring to the press service of ChTPZ.

The first delivery of steel pipes with a diameter of 1,420 millimeters with an external anti-corrosion coating will take place during the second quarter of 2019. It is expected that about 200 kilometers of the TAPI gas pipeline passing through the territory of Turkmenistan will be laid out of pipes provided by ChelPipe.

"Within the framework of the TAPI project, the company will ship the largest batch of LDP over the past few years to Turkmenistan. ChelPipe has offered the best delivery and service conditions among 94 companies from Russia and the world that participated in the tender," the press release said.

For the implementation of the project in accordance with the requirements of international and Islamic banking, its financing was provided by 3 financial organizations. Among them was Russia’s Sberbank – a state-owned Russian banking and financial services company and a partner of ChelPipe, as well as the Islamic Development Bank (IDB) and the State Bank for Foreign Economic Affairs of Turkmenistan.

These institutions organized international cooperation and structured the deal confirming the obligation to pay for the pipe worth over $200 million, the report said.



Construction of the Turkmen section of the TAPI, with an annual capacity of 33 billion cubic meters of gas, was launched Dec. 13, 2015.

The IDB issued a loan for Turkmenistan in 2016 to finance the construction of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline. An agreement worth $700 million was signed with the State Bank for Foreign Economic Affairs of Turkmenistan.

Turkmenistan supplies gas to China and Iran. The ChelPipe group at one time shipped large-diameter pipes for the construction of the third stage of the Central Asia-China gas pipeline.

ChelPipe Group is comprised of ferrous industry enterprises and companies including: Chelyabinsk Pipe Plant; Pervouralsk Pipe Plant, a warehouse complex selling the Group’s tubular products in Russian regions, RIMERA Group oilfield services provider; META scrap metal procurement and processing company; Pipeline Bends, ETERNO and MSA (Czech Republic) manufacturers of main-line equipment.

ChelPipe’s main goal is to fully meet the needs of Russian and global fuel and energy companies through the development and delivery of integrated solutions for main-line and intra-field pipeline transport.

With its sufficient capacities for the production of a wide product range of welded and seamless pipes, as well as its highly developed warehouse system, ChelPipe Group is poised as an effective universal player on the Russian and CIS pipe market, offering tubular products for all major economic sectors, as stated in the group’s website.
 

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Russia’s Arzamas Instrument-Building Plant shipped the first batch of industrial gas meters to Turkmenistan, Trend reports referring to the company’s press service.

The devices will be installed at gas distribution stations of the state heat supply organization.



Cooperation of the company with Turkmenistan began in 2017.

According to Mikhail Surnin, head of the sales department of the company, Turkmenistan has a developed gas transmission network, so industrial gas meters are in high demand in the country. In addition, since January 1 of this year, the government of Turkmenistan passed a decision on equipping the housing stock on an obligatory basis with energy metering devices.
 

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A complex for the manufacture of aerated concrete products and dry building mixes has been commissioned in the Garagan village of the Bakherden district of the Ahal region of Turkmenistan, Trend reports referring to the "Neutral Turkmenistan" newspaper.



The new industrial complex with capacity of 180,000 cubic meters of aerated concrete products and 70,000 tons of dry building mixes per year has been built by the local company "Ukyply kardesler."

The plant has equipment of the German company Wehrhahn GmbH. The plant also has automated workshops for the production of washed sand, dry building mixes and aerated concrete blocks, for the manufacture of which local raw materials will be used - cement, quartz sand, ground gypsum and quicklime.
 

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Turkmenistan is ready for close cooperation with Korean companies in building ships for use in the Caspian Sea, Trend reports referring to the Turkmen Dovlet Khabarlary state agency.

This initiative was announced on Wednesday, April 17, 2019 during negotiations with the President of the Republic of Korea Moon Jae-In, who is on a state visit in the Turkmen capital.

The Balkan shipyard in Turkmenbashi city near the Caspian Sea is a basis for development of domestic shipbuilding. Dry cargo ships and oil tankers are repaired at the plant.

It is planned to build ships of various classes and types in the future. Among them, there are the RO-RO ferries for transportation of wheeled vehicles (cars, trucks, trailers and wagons). In addition to assembling ships, a full cycle of repairs of tankers, dry cargo ships, tugboats, etc. can be carried out here. The technological lines of the plant allow for processing 10,000 tons of steel a year. It is possible to build a minimum of 4 vessels and carry out maintenance and repair work of 20 vessels or more annually.



The shipyard was designed according to the requirements of IACS (International Association of Classification Societies).

The shipyard occupies a total area of 166,000 square meters. Its construction project was implemented by the Turkish company Gap Insaat.

With the commissioning of an additional international sea port in Turkmenbashi in May 2018, optimal opportunities emerged for sending goods that enter the port along the Silk Road route from the countries of Asia and the Pacific, and further to European countries through the ports of Russia, Azerbaijan and Iran.

The annual throughput capacity of the port is 17-18 million tons. Together with the previously operating port, this figure reaches 25-26 million tons.

Shareholders of the Balkan Shipbuilding and Repair Plant are the Türkmendeňizderýaýollary (Turkmen Seaways) agency and Turkmenbashi International Port.
 

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KAMAZ FTC Corp., a truck manufacturer based in Tatarstan (Russia), in 2019 plans to conclude a contract with Turkmenistan for the supply of about 1,000 vehicles a year, Trend reports with reference to the TASS agency, which in turn refers the company’s director general Sergei Kogogin.
He made the remarks on the sidelines of the St. Petersburg International Economic Forum (SPIEF).
“Negotiations were held (with Turkmenistan) at the highest level, the contract is being prepared,” he noted.
Turkmenistan is one of the biggest and stable markets for the sale of products of the leader of the Russian cargo machinery industry. Over the past ten years, Turkmenistan has received more than 9,000 trucks and special machinery of KAMAZ, and the company continues to promote the development of the country’s fleet of vehicles.
KAMAZ has its dealer network in Turkmenistan, which is represented in the cities of Ashgabat, Balkanabat, Mary and Turkmenabat.
 

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