S&P Global Says Turkmenistan Can Make Low-Cost Petrochemicals For Export

(MENAFN- Trend News Agency) ASHGABAT, Turkmenistan, October 22. Turkmenistan has the potential to produce petrochemical products at competitive costs thanks to its substantial natural gas reserves, Michael Liesfeldt, Research Director, Chemicals, at S&P Global Commodity, said at the 31st International Conference and Exhibition “Oil and Gas of Turkmenistan” (OGT 2026) in Ashgabat, Trend 's special correspondent reports.

He added that geographic and logistical constraints do not rule out access to international markets, provided producers ensure consistent product quality and reliable supplies.

According to him, production costs vary significantly across the global petrochemical industry. North America and several Gulf countries have competitive production facilities that use ethane as feedstock, while producers in Europe, Japan and South Korea face higher costs, partly due to their reliance on naphtha.

“According to our models and cost calculations, Turkmenistan is in the second cost quartile and is significantly more competitive than any producer in Asia, as well as Russia,” Liesfeldt said.

He emphasized that the country's substantial natural gas reserves create favorable conditions for developing low-cost petrochemical production in Turkmenistan, with competitiveness comparable to that of facilities in Gulf Cooperation Council (GCC) countries.

At the same time, the expert said the country's geographic location must be taken into account when planning exports. In his assessment, it is not an insurmountable barrier to accessing foreign markets if producers can guarantee the required product quality, reliable deliveries and compliance with agreed volumes.

“There will always be a market for a reliable supplier, even if delivery times are somewhat longer, provided the product is of the right quality and there are firm commitments to supply volumes to international customers,” he said.

Liesfeldt also highlighted structural changes in the global petrochemical industry. According to him, China has made significant progress in meeting its own demand over the past decade, creating additional challenges for traditional exporters from Japan and South Korea.

In Europe, where many facilities use naphtha as feedstock, companies are also announcing production capacity closures. Some, however, maintain their market presence by importing products from the United States.

Against this backdrop, Turkmenistan could capitalize on its domestic resource base and develop petrochemical products in demand on international markets, the expert said.

He added that the country's prospects in this sector depend primarily on its ability to produce goods at competitive costs and establish long-term relationships with foreign buyers.

Meanwhile, the second day of the 31st International Conference and Exhibition“Oil and Gas of Turkmenistan” (OGT 2026) has begun in Ashgabat. As part of the event, a session is being held on the topic“Investment and development opportunities in the Turkmen sector of the Caspian Sea.” Discussions are focusing on investment opportunities for developing the Turkmen sector, prospects for offshore exploration and production of hydrocarbons, and the development of international partnerships.

The agenda also includes existing and new production-sharing agreements (PSAs), as well as modern seismic survey programs designed to help assess resource potential and prepare promising blocks for development.

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