The Turkmen-Chinese economic partnership is reaching a qualitatively new level, shifting the focus from simple raw material trade to the creation of powerful industrial clusters. As part of strengthening bilateral cooperation, two giants of Chinese industry—Puyang Shengyuan Petrochemical Group and Shaanxi Yulin Energy Group—have voiced initiatives aimed at the deep modernization of Turkmenistan’s fuel and energy sector. These involve unprecedented investments in gas chemistry, green energy, and the establishment of high-tech production chains that will allow Turkmenistan to transform its vast natural resources into high-value-added products.
China’s Shengyuan Petrochemical Group Proposes Construction of a Gas Chemical Complex in Turkmenistan
Within the framework of Turkmen-Chinese business forum, the President of Puyang Shengyuan Petrochemical Group, Wang Xichen, presented an Investment Plan for the Turkmenistan Natural Gas Comprehensive Utilization Project. The total construction investment (excluding income tax) is estimated at US$ 9 billion.
The project is focused on the deep processing of natural gas and the creation of three main production chains, aiming to maximize upstream-downstream integration and cost efficiency.
- “Natural Gas — Methanol and Derivatives” Chain: Primary Product: Methanol (1.8 million tons per year). Additional Products: High-density polyethylene (HDPE) and polypropylene (PP) via an MTO (Methanol-to-Olefins) unit. Engineering Cost: $6.3 billion.
- “Natural Gas — Synthetic Ammonia and Urea” Chain: Primary Product: Production of 1 million tons of synthetic ammonia and 1.8 million tons of urea per year. Objective: Supporting agricultural modernization and ensuring food security. Engineering Cost: $0.6 billion.
- Petroleum Products Production: A key link in processing gas into high-value products. The project will enable the annual production of 320,000 tons of naphtha; 620,000 tons of diesel fuel; 60,000 tons of liquefied petroleum gas (LPG); Hydrogen and dry gas for internal industrial needs. Engineering Cost: $1.1 billion.
Wang Xichen emphasized that the implementation of this project will allow Turkmenistan to transform its colossal resource advantages into economic growth and industrial modernization. The launch of the complex is expected to create a significant number of jobs, increase tax revenues to the state budget, and serve as a catalyst for the development of related industries such as logistics, services, and mechanical engineering.
Shaanxi Yulin Energy Group Charts New Horizons for Partnership with Turkmenistan
Gao Xijun, Chairman of the Board of Shaanxi Yulin Energy Group, has unveiled a comprehensive strategy to expand cooperation with Turkmenistan. He emphasized that Turkmenistan stands as China’s key strategic partner in Central Asia, and the current landscape offers unique opportunities to deepen business ties.
During his presentation, Gao Xijun elaborated on the potential synergy between Turkmenistan’s vast resource base and Yulin Energy Group’s technological prowess. The primary focus was placed on transitioning from traditional raw material trade to deep industrial cooperation and the establishment of high-tech production chains.
The Group expressed a strong interest in the stable import of high-quality Turkmen natural gas and chemical feedstocks. In return, the Chinese corporation is prepared to supply high-calorific eco-friendly coal, specialized anthracite, and innovative fine chemical products, such as polyoxymethylene (POM).
Gao Xijun proposed the creation of joint platforms for industrial cooperation across several strategic sectors:
- Chemical Industry: Joint establishment of production lines for deep coal processing, methanol and olefins production, and the manufacturing of advanced engineering plastics.
- Light Industry and Automotive Sector: Leveraging Turkmenistan’s advantages to establish production bases in Central Asia for magnesium alloys and lightweight automotive components.
- “Green” Transformation and Innovation: Significant attention was devoted to the environmental agenda. Yulin Energy Group offers Turkmen partners joint R&D in green hydrogen, energy storage systems adapted for extreme climatic conditions, and the construction of hybrid wind-solar power plants. This partnership aims to accelerate the low-carbon transformation of the energy systems in both nations.
- Investment Synergy: The Group proposed a model of reciprocal investment to strengthen strategic presence. In China, Turkmen companies are invited to participate in projects within Yulin Energy Group’s industrial parks in Shaanxi Province. In Turkmenistan, the Chinese side is ready to invest in the creation of logistics hubs, chemical distribution centers, and renewable energy facilities.
Concluding his remarks, Mr. Gao Sijun invited Turkmen government agencies, research institutes, and business entities to visit the city of Yulin for in-person discussions on these investment projects. ///nCa, 30 April 2026