TUrkmenistan has signed a US$1.7bn agreement with a consortium of Kawasaki Heavy Industries (Japan) and Rönesans Endüstri Tesisleri (Turkey) for the implementation of a gas-to-liquids production plant. The facility will process 1,785 mcm/year of natural gas and will produce 600,000 t/year of gasoline (octane rating of 92). The project will be financed by the Japan Bank for International Cooperation (JBIC) with up to 85% of the investment cost and by national gas company Turkmengas (15%). Commissioning is expected in April 2018.
Other major projects based on gas have been initiated: LG International and Hyundai Engineering (South Korea) will develop gas-to-liquids plants worth US$4bn under a June 2014 agreement, while Mitsubishi and Gap Insaat started building a carbamide (from gas) plant in August 2014.
Turkmenistan's gas production has doubled over the last few years, from 38 bcm in 2009 to 77 bcm in 2013. The launch of a gas pipeline to China in 2009 contributed to a strong economic growth (over 10%/year).