Turkmenistan invites investors from the UAE to develop the third stage of one of the world’s largest gas fields Galkynysh, as well as projects to create a gas transportation infrastructure for the supply of Turkmen gas to foreign markets.
The relevant agreements were fixed in memoranda, inked during the two-day visit of the National Leader of the Turkmen people, Chairman of the Khalk Maslahaty of Turkmenistan Gurbanguly Berdimuhamedov to the United Arab Emirates on 4-5 January 2023.
The state Concern Turkmengaz and the Abu Dhabi National Oil Company (ADNOC) have signed a Memorandum of Understanding.
This MoU focuses on two key areas:
- The deal targets attracting strategic partners for the development of the third stage of the Galkynysh field, a super-giant gas reserve expected to be a primary source for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline.
- The MoU also seeks partners for constructing vital gas pipeline infrastructure to deliver Turkmen gas not only to neighboring countries but also to broader international markets.
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During the visit, Arkadag Berdimuhamedov met in Dubai with the Chairman of the Board of Directors of Dragon Oil, Syed Al Thayer. Following the meeting, a Memorandum of Understanding was signed between the State Concern Turkmennebit and Dragon Oil (Turkmenistan) Ltd.
Arkadag Berdimuhamedov stressed that among the priorities set for the fuel and energy complex of Turkmenistan is to increase the volume of production and processing of oil and natural gas, as well as gas exports and finished oil and gas chemical products.
The energy policy pursued by Turkmenistan is based on putting the wealth of our country at the service of all mankind, he said.
In this context, Berdimuhamedov mentioned the TAPI gas pipeline construction project (Turkmenistan–Afghanistan–Pakistan–India), designed to advance the socio-economic development of the entire Asian region. The third stage of development of the Galkynysh field will be the source for ensuring gas supplies to the TAPI gas pipeline.
About the Galkynysh field: “OGT 2023: Gross gas production at the Galkynysh field may reach 200 billion cubic meters of gas per year”: https://www.newscentralasia.net/2023/10/26/ogt-2023-gross-gas-production-at-the-galkynysh-field-may-reach-200-billion-cubic-meters-of-gas-per-year/
In this regard, Turkmenistan invites partners and investors from the UAE to participate in the implementation of new energy projects related to the construction of a gas pipeline infrastructure designed to supply natural Turkmen gas to the countries of the region and beyond.
The Dragon Oil company, whose head office is located in Dubai (UAE), has been operating in Turkmenistan since 2000 on the basis of a Production Sharing Agreement.
The company’s assets in Turkmenistan are located in the contractual territory of Cheleken in the Caspian Sea. Over the years, the company has invested heavily in the exploration and development of deposits of Jeytun and Jygalybeg fields.
Dragon Oil has recently opened its new office in Ashgabat, which is the largest regional office.
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On the sidelines of the visit, the State Concern Turkmengaz and the Abu Dhabi National Oil Company (ADNOC) signed a Memorandum of Cooperation.
The MoU aims at exploring the potential of scientific, technical and economic mutually beneficial cooperation in the field of reducing methane emissions.
This cooperation holds particular significance in light of Turkmenistan’s recent commitment to the Global Methane Pledge at COP-28 and its ongoing efforts to combat climate change. Aligning with the Paris Agreement, Turkmenistan has implemented the National Climate Change Strategy, driving initiatives to minimize and ultimately eradicate the negative impacts of methane.
Turkmenistan’s dedication to this cause manifests in concrete actions – actively introducing and utilizing modern, eco-friendly, and resource-saving technologies across various sectors like oil and gas, transportation, power generation, agriculture, and construction.
In this pursuit, ADNOC’s expertise can prove invaluable, contributing to Turkmenistan’s “green” aspirations within the fuel and energy sector.
ADNOC has earned a reputation as a leading lower-carbon intensity energy producer. In the period 2018-2021, the group achieved a reduction of almost 10% in absolute emissions, driven by a systematic reduction in flaring and implementation of energy efficiency measures. The company also has a clear roadmap to reduce the intensity of emissions by about 25% by 2030.
It should also be recalled that Dragon Oil plans to completely stop burning associated petroleum gas in Turkmenistan by 2027.
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Energy cooperation is one of the most important items on the agenda of the Turkmen-Emirati cooperation.
In February 2023, the National leader of Turkmenistan, Chairman of the Halk Maslahaty Gurbanguly Berdimuhamedov visited the UAE.
National leader of Turkmenistan visits UAE, 11-12 February 2023 – Joint declaration issued: https://www.newscentralasia.net/2023/02/13/national-leader-of-turkmenistan-visits-uae-11-12-february-2023-joint-declaration-issued/
Then, during the visit, a memorandum of understanding on energy cooperation between Turkmengaz and ADNOC was signed, as well as a joint declaration indicating the intentions of Turkmenistan and the UAE to develop cooperation in a number of sectors, including the energy sector.
It is obvious that the recent agreements have concretized the content of previous intentions, serving as a catalyst for their swift and tangible implementation. ///nCa, 6 January 2024