Türkmengaz

Stock performance

History

Türkmengaz was created in 1996 by presidential decree when the former oil and gas ministry was reorganized into state concerns. It inherited the Soviet-era gas fields that had made Turkmenistan a major supplier to the USSR, and its fortunes have since been shaped by the hunt for export routes that bypass Russia, culminating in the Central Asia-China pipeline that opened in 2009.

Business model

The state concern produces, processes, and exports natural gas, including from Galkynysh, one of the largest gas fields in the world. Most exports now go to China through the Central Asia-China pipeline, with smaller volumes sold to Russia and swapped through Iran, and the long-planned TAPI pipeline to Afghanistan, Pakistan, and India has been under construction for years.

Market position

Turkmenistan holds some of the largest natural-gas reserves in the world, and Türkmengaz is the core of that industry. Its heavy reliance on China as its main buyer gives Beijing significant pricing leverage.

Country impact

Gas exports are the main source of Turkmenistan's export revenue and state budget, so changes in volumes to China or Russia drive the economy's swings. Gas revenue also funds the state's subsidies and showcase construction projects, in an economy where official data are sparse and hard to verify independently.