ASHGABAT, Turkmenistan, April 10.Turkmenistan's economy remains heavily dependent on hydrocarbons, with natural gas and oil making up more than 88 percent of the country’s total exports, and gas alone accounting for nearly 68 percent in 2024, Trend reports via Asian Development Bank (ADB).
This over-reliance on resource-based products leaves Turkmenistan vulnerable to external market fluctuations and changes in global trade dynamics.
While economic growth over the past decade has been driven by a surge in hydrocarbon prices and production, labor productivity has remained low, since the capital-intensive hydrocarbon sector employs few workers. Most of the labor force remains employed in low-productivity sectors outside of hydrocarbons.
In response, the government has prioritized economic diversification, particularly through the development of its petrochemical sector. As part of this strategy, Turkmenistan is establishing new petrochemical plants to convert natural gas into higher-value products, including polyethylene, polypropylene, methanol, formaldehyde, and synthetic rubber. These products are essential for industries such as plastics manufacturing, fertilizers, and other chemicals.
Additionally, the country is building gas-to-gasoline and gas-to-liquid plants to produce high-quality, low-sulfur gasoline, diesel, and jet fuel, catering to more diverse and global markets. These efforts are outlined in Turkmenistan’s 2022–2052 development program, which emphasizes transitioning from basic chemicals to more sophisticated fine chemicals.
The government’s focus is on increasing the production of high-tech oil and gas chemical products, particularly fine chemicals used in pharmaceuticals, agrochemicals, electronics, and other specialized industries. By enhancing its chemical industry, Turkmenistan aims to strengthen its global market position, establish trade partnerships with advanced economies, and build a more resilient, diversified economy.
Through substantial investments in technology, infrastructure, and innovation, Turkmenistan is set to enhance its competitiveness in the petrochemical sector, paving the way for long-term economic growth and sustainability.
