Embassy of the Republic of Korea

Chemical Industry
of Turkmenistan

Ashgabat, Turkmenistan
June, 2018

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 Table of Contents

1. Introduction
2. Structure of Chemical Industry Management
3. Deposits
3.1. Western Turkmenistan
3.2. Eastern Turkmenistan
4. Main Production Plants
4.1. Fertilizers Production
4.1.1. Nitrogen Fertilizers Plant (Mary, Tedjen, Garabogaz Plants)
4.1.2. Phosphorus Fertilizers Plant (Turkmenabat Chemical Plant)
4.1.3. Potash Fertilizers Plant (Garlyk Combine)
4.2. Iodine Production
4.2.1. “Khazar” Chemical Plant
4.2.2. “Balkanabat”, “Bereket” Iodine Plants
4.3. Salt & Sulfate Production
4.3.1. Combine “Guwlyduz”
4.3.2. PA “Garabogazsulfate”
4.4. Production Association “Turkmenmineral”
5. List of Main Products and Production Facilities
6. Future Projects

1. Introduction

Turkmenistan, in addition to the giant hydrocarbon resources, also has a rich variety of hard
minerals and hydromineral reserves of industrial scale. State Concern “Turkmengeologiya”
(Turkmen Geology) not only explores the fields for oil and gas reserves but also deposits of
minerals. The strategy for the development of the chemical industry of Turkmenistan, which has

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the richest mineral resources, is aimed at maximizing the use of local raw materials, satisfying the
needs for chemical products in various spheres of the national economic complex, and building up
the export potential of the industry itself.

Given the active work for implementing the policy on import substitution and differentiation of the
products and the huge reserves of the minerals, the State Concern “Turkmenhimiya” (Turkmen
Chemistry) undergoes several large scale projects and carries the biggest portion on realization of
1, 2
the country’s policy on import substitution and production of export oriented products.

The report will try to collect information about the minerals the country possesses and current
activities and projects of SC “Turkmenhimiya” within the country.

2. Structure of Chemical Industry Management

In accordance with the decree signed in August 2007, the State Concern "Turkmenhimiya" was
established as a result of merger of “Turkmendokun” (Turkmen Fertilizer) and “Turkmenyod”
(Turkmen Iodine) joint stock companies and is an institution accountable to the President of
Turkmenistan and the Cabinet of Ministers of Turkmenistan. State Concern has ten production
plants and associations, the company for realization of services of providing mineral fertilizers to
3, 4
consumers (Chemical fertilizer) and the Industrial Research Institute (Institute of Chemistry):

 Production Association “Garabogazsulfat” (PA Garabogaz Sulfate)

 Chemical Plant “Khazar”
 Iodine Plant "Balkanabat"
 Iodine Plant "Bereket"
 Combine "Guwlyduz"
 Production Association “Maryazot” (PA Mary Nitrogen)
 Plant “Tedjenkarbamid” (Tedjen Carbamide)
 Turkmenabat Chemical Plant
 Combine “Garlyk”
 Production Association “Turkmenmineral” (PA Turkmen Mineral)
 Enterprise "Dokunhimiya" (Chemical Fertilizer)
 Institute of Chemistry at the Academy of Science of Turkmenistan

At these plants are mainly produced:

 ammonia, ammonium nitrate, nitric acid, carbamide - PA “Maryazot", "Marykarbamid”,

Tedjenkarbamid" plants;
 sulfuric acid, ammonium superphosphate, azophosphate, environmentally friendly
oxyhumate, liquid glass - Turkmenabat chemical plant;
 iodine - at iodine plants “Balkanabat”, “Bereket” and chemical plant “Khazar”;
 potassium iodide, potassium iodate, bromine iron, iodoform, carbon black, bleaching agent
- chemical plant “Khazar”;
 sodium sulfate, magnesium sulfate (epsomite), magnesium chloride (bischofite), glauber
salt - PA “Garabogazsulfat”;
 iodized table salt, salt for industrial consumption - combine "Guwlyduz";
 potassium chloride - combine “Garlyk”
 sulfur ground, calcium carbide, medical and construction gypsum, caustic dolomite,
celestite weighting agent, celestite concentrate, construction materials - PA
"Turkmenmineral". 5, 6
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The enterprise “Dokunhimiya” and Insitute of Chemistry do not create the production power of the
chemical industry of the country.

The Institute of Chemistry is the only scientific research institute of chemical profile in
Turkmenistan. It is entrusted with the functions of solving scientific and technological problems in
the development of the physicochemical basis for complex processing of mineral, hydromineral
and hydrocarbon raw materials.The Institute of Chemistry was established in 1957 as part of the
Academy of Sciences of Turkmenistan.7

The main task of enterprise "Dokunhimiya" is to render services in mineral fertilizers to consumers.

(In 2015 for ensuring timely provision of mineral fertilizers to agrarians, 32 specialized outlets for
the retail sale of these products at a free price have been opened on the basis of province
departments and district enterprises of "Dokunkhimiya".8)

3. Deposits

The State Balance of Turkmenistan includes around 250 deposits of various solid minerals and
hydromineral raw materials prepared for industrial development. Among them: various mineral
salts, iodine-bromine industrial waters, celestite, sulfur, bentonite, kaolin clays, ozocerite,
barite, ornamental and finishing stones, carbonate raw materials for the chemical industry, a
variety of mineral raw materials for the production of building materials: limestone, marl,
dolomite, granite, gypsum, refractory clay, quartz sand, gravel, pebble, etc.

Some types of those deposits are comparable with the best world analogues according to their
quality and quantity of reserves. Only the proven reserves of strontium contained in the celestite
ore account for more than 85 percent of the reserves of the CIS countries.

The reserves of potash salts of identified fields of East Turkmenistan accounted as 2.8 billion of
metric tons in 2013. The territory turned to be one the biggest industrial center of the region and as
the first center of mining in the country. So, two of the seven largest deposits of potash salts of CIS
countries are located on the territory of Turkmenistan.

The bowels of Turkmenistan are particularly rich in deposits of various mineral salts - table,
potassium, sulfate and magnesium. The largest field of Garabogazgol is one of the four known
deposits of sodium sulfate in the world, along with other deposits of glauber’s salt, magnesium
chloride and magnesium sulfate. 7

Turkmenistan has the world's largest deposits of iodide-bromine waters and ranks first among
the CIS countries and fifth in the world in iodine reserves. Balkan in the western part of
Turkmenistan is the main province to produce the iodine and bromine in the country.

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 3.1. Western Turkmenistan

Figure1. Deposits in Western Part of Turkmenistan

Cheleken Peninsula is rich in minerals, the main of which are: oil, gas, sulfates, salt and
ozocerite.8

In addition to the main minerals, there are also deposits of the following minerals: galena,
gypsum, barytes 9, aragonites, attackamates, sphalerites, pyrites, lead ores 10

Turkmenistan has significant world reserves (more than 40 percent) of ozocerite the deposits of
which are found in Western Turkmenistan: on the Cheleken Peninsula and to the south of the
Large Balkan Mountains. Development has been underway since 1930. It is used in radio and
electrical engineering as an electrical insulating material, in the chemical industry for the production
of varnishes, in medicine for the manufacture of petrolatum, ointments, creams, etc., as well as for
heat treatment (ozocerite therapy).

Iodine and bromine. The deposit of iodide-bromine waters was found on the Cheleken peninsula
and in Nebitdag. Khazar, Balkanabat and Bereket iodine-bromine producing plants operate on
their basis. Today Cheleken, Boyadag, Nebitdag-Monzhukly deposits are in active industrial
development. The Gogerendag-Garadashly field belongs to the reserve group, where over 50
percent of Turkmenistan's iodine reserves are concentrated. 11

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The Gulf of Garabogazgol (North-West of Turkmenistan) is especially different as a source of raw
materials for the chemical industry. In addition to salt and hydro-mineral raw materials, deposits of
non-metallic building materials (lime, dolomite, gypsum, etc.) are known. 12

The main wealth of it is glauber's salt (mirabilite). This is the only field in the world where the
crystallization of various salts in natural condition takes place.13

It is also one of the four known deposits of sodium sulfate in the world, along with large deposits
of bischofite and epsomite. The extraction of Glauber's salt began in the 20’s on the lifeless coast
of Garabogaz. The Gulf of Garabogazgol lies several meters below the level of the Caspian Sea,
which is connected to it by a narrow strait. Every year, a huge amount of sea water flows into the
bay, which evaporates there. To stop the irretrievable water withdrawal, which strongly influenced
the level of the Caspian Sea in 1980, the strait was blocked off by a deaf dyke. The bay turned into
a lake and quickly dried up. The extraction of the mirabilite was greatly complicated, and the
exposure of the seabed had no beneficial effect on the ecological situation in the region. In 1992
when the sea level increased by more than 2 meters compared to 1978, the dam was liquidated,
and Garabogaz again became a sea bay. Every year after November 20, when the water
temperature drops to 5.5-6 degrees Celsius, the mirabilite begins to stand out as colorless crystals
settling on the bottom of the bay. Winter storms throw it onto the banks, forming huge shafts.
Between November and March it is collected. By 10-15 March, the temperature of the water in the
bay again rises above 6 degrees, and its waters begin to take their wealth - the salts turn into
solution.14

Figure2. Extraction of Glauber Salt on Garabogaz

Reaching a thickness of 10-15 meters the rich deposits of quartz sands and kaolin clays
enriched with quartz were discovered recently in 2014 in Garabogazgol. It was noted that the
discovered quartz sands, in terms of their qualitative characteristics, are suitable for the production
of glass and silica brick. Quartz sand is also extracted from Mane stone quarry of Dushak village of
Kaaka district of Akhal province (Southern Turkmenistan). 15

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The production of coal is not active is Turkmenistan. In Tuvergyr, the deposits of brown coal are
accumulated. The Tuvergyr coal deposit is located in the West of Turkmenistan, about 60
kilometers east of Garabogaz. Here situated dozens of coal mines - Gapakly, Chayyrly,
Amanbulak, Salakbent, Uchtagan, Chagyl and others. It is found among the deposits of the
Jurassic period and consists of several layers with a thickness of 0.3 to 2 meters. It is assumed
that the reserves of the Tuvergyr coal basin are around 2 billion tons. The drilling operations in
2015 made it possible to reveal a coal seam up to 10 meters thick between the villages of
Gyzylgaya and Chagyl.16

The most common chemical element in the crust is aluminum. It is extracted mainly from bauxite
ore. In Turkmenistan, bauxite is found in Tuvergyr also. It is found in the composition of clayey-
sand deposits of the Jurassic period.

In Tuvergyr, Koytendag and some other areas, manganese compounds were found among
Paleogene deposits.

40 km to the north of Turkmenbashi city, there is a lake "Guwly" - a unique pantry for the
extraction of salt. Among the many salt lakes, Guwly lake is the largest salt deposit in
Turkmenistan. Uniqueness of the lake, unlike other salt deposits, is that surface brine is formed
only in the autumn-winter period, and during the rest of the year it is a dry surface and this
facilitates the extraction of salt. The unique natural formation of layered salt deposits and its
reserves, chemical composition and purity by toxic elements makes it possible to carry out
shipment without enrichment.17

Figures3.4. Salts of Lake Guwly

The sedimentary complex of the Large Balkan is associated with the manifestation of iron and
molybdenum ores, deposits of agates and rock crystal, bentonite clays, non-metallic
building materials.18

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 3.2. Eastern Turkmenistan

Turkmenistan occupies one of the leading places in the world for the availability of mineral raw
materials for the chemical industry. In this respect, the Koytendag district of Lebap province
possesses great opportunities, in the depths of which there are several dozens of different types of
minerals. Geologists have discovered a number of deposits - sulfur, phosphate, rock salt, gypsum,
strontium raw materials - celestite, polymetals, limestone and other minerals, on the basis of which,
in addition to the chemical industry, the production of building materials will also intensively
develop.

At present, most of the world's sulfur output comes from elemental sulfur, obtained mainly from the
processing of oil and natural gas, as well as from the development of native sulfur deposits. Two
big deposits of sulfur in Central Asia located in the Central Garagum and in the Gaurdak area
(Koytendag district) of Turkmenistan. In Central Garagum, the extraction of sulfur was started in
1925, where it was developed for 30 years. Later, in connection with depletion of reserves,
transportation difficulties and the discovery of a new field in Gaurdak, the development of sulfur
has been discontinued in Central Garagum. Sulfur deposits are also found in Kopetdag Mountain
(Southern Turkmenistan), the Large and Small Balkan Mountains, the Krasnovodsk Plateau
(Western Turkmenistan) and other places. Since natural gas of the country is sulfurous the sizable
amount of sulfur production comes from gas processing operations.19

The Gaurdag rock salt deposit, located not far from Magdanly, is also worth mentioning. Raw
materials produced here are suitable for the production of calcined and caustic soda, chlorine and
chemical water treatment. Significant reserves of this raw material also have such deposits as
Koytendag, Khodzhakyam Uzunkuduk. Millions of tons of salt lying here can be used for
technical purposes and as a feed additive for livestock.

Fields of facing materials in building (Gaurdag and Charshangy) can be a great help for the
development of the construction industry. The local limestone, the existing reserves amount of
which accounts to almost 500 million cubic meters, are perfectly suitable for the production of slabs
intended for internal lining of buildings. Currently, the extraction of this material is carried out at the
Tagarin limestone deposit, located near Magdanly city.

There are also explored deposits of limestone for the chemical industry. This is Gaurdag and
Karadjumalak totaling two, three hundreds of million tons. The raw material here is necessary for
the production of soda ash. In the industrial development stage, these deposits will provide not
only the local industry with the necessary raw materials, but also can become a profitable export
item.

Near these underground storages there is also the Gaurdak deposit of gypsum and anhydrite
(reserves accounted 63.8 million tons in 2008) - raw materials necessary for the cement industry,
the production of molding gypsum, mortar, sulfuric acid. The deposit was developed almost thirty
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years by the Gaurdak sulfur plant with overburden of sulfur deposits in the amount of 300 - 400
thousand tons per year. Currently, gypsum is also supplied to the Kelete Cement Plant.

In the same area, two large deposits of strontium raw materials - celestite - Arik and Sakrytmin -
were discovered by geological prospectors in 2008. Located in several tens of kilometers to the
north-west of Magdanly city of Koytendag area, the deposits have raw material reserves estimated
at millions of tons. Now this ore is added in small volumes and is used mainly for the production of
a celestite weighting agent for drilling fluids.20

In 1943 a lead mine was discovered In Koytendag Mountain. Along with lead, here until 1966,
other non-ferrous metals were mined. In Koytendag, among the deposits of the Jurassic period,
lead and zinc strata were found in the form of lenses and rods. Among the deposits of the
Mesozoic period, copper ore is also found. There are known places with significant reserves of
barite in Western Koytendag. In some of them barite also contains lead and zinc.

Recent studies have revealed about 200 places with cinnabar reserves - the main raw material for
mercury production. Minerals of mercury are also found in Koytendag, Large Balkan Mountains.

According to the geological studies, the potash salts reserve of Garlyk deposit located in the
Koytendag district is more than two billion tons. The giant industrial center was formed in Garlyk
where the creation of the first mining industry was launched in 2017. In addition to Garlyk deposits
of potassium salts the Karabil and Tyubegatan were explored and a tender for the construction of
another mining and processing enterprise was announced.

In Southern Turkmenistan, in the Western Kopetdag there are ore occurrences of barite,
witherite, fluorite, mercury but they have no industrial significance.

4. Main Production Plants

4.1. Fertilizers production

The majority of fertilizers plants constructions in Turkmenistan are realized by the participation of
Turkish companies. After the independence of the country, Gap Inshaat Yatirim ve Dis Ticaret AS
and Ronesans Endustru Tesisleri were the main active companies working under the
consortiums formed with other countries companies (mainly Japanese).

Gap Inshaat Yatirim ve Dis Ticaret AS of Chalik Holding along with other construction projects
implemented the building of carbamide and ammonia plant in Tedjen city and currently is finalizing
the construction of Garabogaz chemical plant to produce ammonia and carbamide. 21

Ronesans Endustru Tesisleri was involved in two large scale chemical projects, particularly the
construction of chemical fertilizer plant (ammonia and carbamide) in Mary province and sulfuric
acid plant in existing Turkmenabat Chemical Plant. 22
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 Figure5. Ronesans Endustri Tesisleri projects in Turkmenistan

In 2014, government stated Turkmenistan has a lag in the use of mineral fertilizers from other
countries, where up to 800 kg of mineral fertilizers are applied per hectare (compared to 200 kg in
Turkmenistan). According to the forecasts of the Turkmen Institute for Strategic Planning and
Economic Development Turkmenistan was able to produce three times more fertilizers than in
2014 which could positively affect the country's economy. According to them, agricultural producers
would be able to increase their harvest, and the country could become an exporter of fertilizers.

Reliance of Turkmenistan on imports to meet its agricultural minerals was not small up to 2014. In
November of that year, the government defined the agriculture’s demand in mineral fertilizers and
noted the need to purchase the missing volumes of ammonium nitrate. However, despite the
government’s statements that that was the last case of import of ammonium nitrate from
neighboring Uzbekistan the international tenders for this product purchase still appears in the
newspapers of official media. Today the ammonium nitrate is produced by the only enterprise, the
PA ”Maryazot”.

In 2001 Turkmenistan's demand for nitrogen fertilizers exceeded 700,000 tons. Only a third of it
24
was covered by the products of the enterprise "Maryazot" (which means that the production
capacity of Mary units for that type of fertilizer was about 233,000 tons yearly). Even the new plant
for those years, “Tedjenkarbamide” with 350,000 tons yearly capacity constructed by the end of
2004 was not enough to cover the demand of the country for nitrogen fertilizers. For that reason it
was decided to increase their production capacities.

According to the development plans of Turkmenistan the production of chemical fertilizers will grow
to 1,6 times in 2024 compared to 2018 and will equal to 3285 thousand tons, where 74.5% of it will
be exported.

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 Fi
gure6. Mineral Fertilizers Production during 2018-2024 years, thousand tons

Nitrogen Phosphorus Potassium

4.1.1. Nitrogen Fertilizers Production Plants

The presence of large reserves of natural gas in Turkmenistan is a good solution for the
construction of new large complexes for the production of nitrogen fertilizers, including carbamide.

Today, the chemical industry infrastructure is represented by a powerful cluster of nitrogen fertilizer
companies - the PA “Maryazot”, the gas chemical complex commissioned in 2014 at
“Marykarbamid” plant and “Tedjenkarbamid” plant. One more step in increasing the capacity for the
production of nitrogen fertilizer is the decision to build another gas chemical complex, accelerated
25
in the Garabogaz town of Balkan province. In this connection after the commissioning of
Garabogaz plant, the volume of carbamide production in the country will be more than 2,000,000
tons according to the local official media.

Production Association “Maryazot” (PA Mary Nitrogen)

PA “Maryazot” is the old complex constructed during USSR period and the only enterprise to
produce ammonium nitrate. However, due to the old worn parts the annual throughput capacity
(450,000 tons yearly) was not reached. About 70% of its equipment provided by Russian
“Uralkhimmash” operated more than 30 years and in 2014 it was decided to modernize and
increase its capacities by building new units and plants.

The agreement was reached during the visit of the general director of “Uralkhimmash” to SC
"Turkmenkhimiya". In April 2013, the specialists of "Uralkhimmash" prepared a technical and
commercial offer and presented it to the SC "Turkmenkhimiya" which also was approved by the
Cabinet of Ministers of Turkmenistan. By the end of 2013 it was supposed to prepare feasibility
studies and start required works. 26

Thus, in September 2016 the tender on building plants to produce 400,000 tons of ammonia,
235,000 tons of nitric acid, 300,000 tons of ammonium nitrate, 450,000 tons of carbamide, 20,000

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tons of UF-85-60 carbamide formaldehyde concentrate and 20,000 tons of methanol was
announced.

According to the National Socio-Economic Development Program for 2018-2024 years period it is
planned to build ammonium nitrate (300,000 tons), carbamide (450,000 tons) plants with total sum
of investment about 1.2 billion USD during 2022-2026 years. The new tender on construction of a
plant to produce of 20,000 tons of UF-85 carbamide formaldehyde concentrate was announced
27
recently in June 2018.

Plant “Marykarbamid” (Mary Carbamide)

Figure7.Chemical Complex in Mary built in 2011-2014 years

The solemn opening ceremony of a large gas chemical complex for the production of another
nitrogen fertilizer ammonia and carbamide production plant commissioned constructed by
Japanese-Turkish consortium of Kawasaki Heavy Industries Ltd, Sojitz Corporation and
Ronesans Endustri Tesisleri was held in the regional center of the Mary province of
Turkmenistan.

The new complex worth more than 1 billion USD annually produces 400,000 tons of ammonia
and 640,000 tons of carbamide. The natural gas in the amount of 500 million cubic meters per
year comes as a raw material of the stated products.28

Plant “Tedjenkarbamid” (Tedjen Carbamide)

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 Figure8.Tedjen Nitrogen Fertilizer Plant

The project, which was initiated in 2001 in Turkmenistan’s Tedjen city, was put into service in 2006
as the first fertilizer production plant of Turkmenistan. The project cost is estimated at 240 million
dollars. The construction of the plant was carried out by Turkish Gap Inshaat Yatirim ve Dis
Ticaret AS company, part of Chalik Holding. To finance the project, a closed joint-stock company
(CJS) “Turkmenkarbamid” (Turkmen carbamide) was established, which was founded by the
state concerns “Turkmenneft” (Turkmen Oil), “Turkmengaz” (Turkmen Gas), “Turkmenpagta”
(Turkmen cotton) and Turkmendokunkhimiya (Turkmen Fertilizer Chemistry) . The SJC
“Turkmenkarbamid” managed the project and financing from the sale of oil, oil products, natural
gas and cotton. According to preliminary data of Turkish experts, net profit after tax payment was
supposed to be more than 12.8 million dollars per year. 29

The enterprise's capacity is 350,000 tons of carbamide per year (1,050 tons per day). The total
area of the enterprise is 60 hectares. As raw material for production, natural gas is used from the
fields of Mary province. In contrast to the products produced at the PA “Maryazot”, where the
nitrogen content does not exceed 32%, a carbamide with a pure nitrogen content of 46% is
produced by this plant.

The plant will be reconstructed and modernized in order to increase the level of use of production
facilities and output to full design capacity. Information about this was reported on April 20 at a
meeting of the government of Turkmenistan. 30

Garabogaz Gas Chemical Complex

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 Fig
ure9. Plan of Garabogaz Nitrogen Fertilizer Plant

The main gas pipeline East-West will deliver natural gas to the plant for the production of
carbamide, the construction of which is being carried out in the town of Garabogaz of Balkan
province. "Blue fuel" will become the initial raw material for the future enterprise. The reserves of
glauber salt accumulated in Garabogaz will also be used in the preparation of ammonia,
carbamide. 31 The project is valued around 1.35 billion USD. 32

The construction of this plant, occupying a territory of 60 hectares, began in December 2014 in
accordance with the Framework Agreement signed by the State Concern “Turkmenhimiya” with a
consortium consisting of the Japanese company Mitsubishi Corporation and the Turkish Gap
Inshaat Yatirim ve Dis Ticaret AS.

The processing of natural gas into ammonia will be carried out according to the technology of
Haldor Topsoe AS (Denmark) and UOP (USA), carbamide synthesis will be carried out according
to the technology of the Italian company Saipem, followed by granulation using the technology of
Uhde Fertilizer (the Netherlands).

After putting into operation, the plant will produce 1,155,000 tons of carbamide and 640,000 tons
of ammonia per year. The daily output is 3,500 tons. The enterprise, whose products will be
exported, is scheduled to be commissioned in mid-2018.33

Export deliveries will be conducted mainly through the port “Bektash” in the city of Garabogaz,
which modernization work is currently continues. The designed capacity of the port berth is 3,500
tons of cargo per day. Another construction related to the plant and export of carbamide is the
building of bridge over the Garabogaz bay as part of Turkmenbashi-Garabogaz-Kazakhstan
automobile road. 34
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 Figure10. Map of Turkmenbashi-Garabogaz-Kazakhstan border road, Bridge and Fertilizer Plant in Garabogaz

4.1.2. Phosphorus Fertilizers Plant (Turkmenabat Chemical Plant)

Turkmenabat Chemical Plant of SC “Turkmenhimiya” is one of the leading industrial enterprises

and the only producer of phosphorous fertilizers in the country and the largest producer of high-
quality sulfuric acid in the Central Asian region.

The plant is one of the key enterprises of the domestic chemical industry capable of producing
225,000 tons of phosphorous fertilizers and 500,000 tons of sulfuric acid per year.

The new sulfur acid shop was commissioned in 2016. The design and construction of the facility
was carried out by a consortium of companies Mitsui Engineering & Shipbuilding Co., Ltd
(Japan) and Ronesans Enustri Tesisleri (Turkey), with the participation of local construction
companies.35 The new workshop is the technological line of the double absorption process, which
consists of three stages. First - the conversion of sulfur into its dioxide by burning, then - the sulfur
dioxide compound with oxygen to produce sulfuric anhydride and, finally, the connection of the
latter with water to form a solution containing 98-99% sulfuric acid.36

The demand for sulfuric acid at the Turkmenabat chemical plant itself will increase significantly, as
the company plans to build a complex for the production of high-quality concentrated phosphate
fertilizers with a capacity of 300,000 tons per year. An international tender has been announced for
the construction of a new plant in May 2018.

As a result of the work carried out at the Turkmenabat chemical plant, an annual production of
1,100 tons of environmentally friendly oxyhumate has been established recently, which
promotes the growth of crops, protects plants from pests and increases yields. The main raw
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material for the production of this product is brown coal from Tuvergyr coal deposits on the
Amanbulak site located on the territory of the Turkmenbashi district of the Balkan province.

Also, the plant has established a production of liquid glass with a capacity of 100 tons per year,
which is widely used in construction, production of organic oils, enrichment of various ores, and
also in drilling wells. The main raw material in its production is quartz sand, extracted from the
stone mine of Mane, Dushak settlement of the Kaahka district of the Akhal province (Southern
Turkmenistan). The enterprise produced 20.6 tons of liquid glass from the beginning of 2018, 14
tons of which were sold on the domestic market.

In order to import substitution, the plant also plans to launch the production of a chemical
coagulant, which is used in one of the most important stages of purification of drinking water. At
present, all works on the scientific analysis of the production of this product have been fully
completed and commissioning is underway. 37

Products production Capacity Product applicable in Raw material Construction

Facility (tons) /Reconstructi
on period
(year)
Phosphorous 225,000 agriculture sulfuric acid, n/a
Fertilizer production synthetic ammonia,
complex phosphorite flour
Sulfuric Acid 500,000 agriculture sulfur, obtained in 1985;
production complex the process of natural 2013-2016
which includes: gas purification
production shop
4 tanks for storage of 5,000 tons of finished sulfuric acid each
stock of raw materials calculated for 20,000 tons of sulfur
2 warehouses for storage of 3,000 tons of purified and unrefined liquid sulfur each
Environmentally 1,100 agriculture brown coal 2018
friendly Oxyhumate
production complex
Liquid Glass 100 construction, organic oils quartz sand 2018
production complex production, ores enrichment,
drilling wells
Concentrated 300,000 agriculture sulfur acid Tender
Phosphorous announced in
Fertilizer production May 2018
complex
Table1. Main Shops and Units of Turkmenabat Chemical Plant

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 4.1.3. Potash Fertilizers Plant (Garlyk Combine)

Figure11. Mining and Processing Plant in Garlyk, Lebap Province

A major center of the mining and processing industry was established on the right bank of the Amu
Derya River in Koytendag district, at the Garlyk potassium salt deposit. The first in Turkmenistan
and one of the largest in Asia, the Garlyk Mining and Processing Plant meant the birth of a new
branch of the national economy - mining. In April 2017, the SC “Turkmenhimiya” commissioned
the plant built by OJSC "Belgorkhimprom" (Belarus) for the production of potash fertilizers worth
more than 1 billion USD.38 The capacity of the plant is 1,400,000 tons of potassium chloride per
year which includes 600,000 tons of granular and 800,000 tons of fine-grained product. The
construction which started in 2009 was fully financed by the funds of government.

Opening of productive layers, located at a depth of 200 to 1000 meters is carried out by the mine
method, fully mechanized combine harvesting method of excavating productive layers. 39 To provide
the plant’s capacity, more than 7,000,000 tons of potash ore needs to be extracted annually.

Turkmenistan was interested in the construction of another mining and processing enterprise, 40
km from Garlyk plant by Belarus companies, however the defects found later in 2018 at the Garlyk
plant made the government to change its mind in favor to the local companies. 40 According to the
latest local news, the new mining and processing plant with a capacity of 3,500,000 tons of potash
ore and 700,000 tons of potassium chloride per year will be built in Tyubegatan field in Lebap
province.

Pg 17 of 28
 4.2. Iodine Production

The production of iodine along with mineral fertilizers is the most important branch of the domestic
chemical complex, which together with the fuel and energy complex forms the basis of the national
economy. In nature, iodine is in a diffuse state and its industrial reserves in the world are small.
Here the importance and demand for this product appears.

At present, the “Khazar” Chemical and “Balkanabat” and “Bereket” iodine plants specialize mainly
in the production of technical iodine, which is used in the production of photographic materials,
dyes, electronics, synthetic rubber, various chemicals, liquid crystal displays, etc.

In 2001, Ashgabat approved programs for the integrated development of iodine-bromine water
deposits, which consists of three stages. As a result of this program, Turkmenistan planned to
reach the third place in the world for the production of iodine - after Chile and Japan. Currently,
Turkmenistan ranks fifth in the world in its production. The country produces 540-570 tons of
valuable raw materials annually.41

According to the development program of Turkmenistan for 2018-2024, it is planned to increase

the capacity of the enterprises for the production of iodine, bromine and products from them on the
basis of processing of iodine-bromine waters in the territory of Balkan province. As a result, during
seven years period the production of technical iodine in the country will increase by 2.3 times, and
in 2024 the export volume of this product will exceed 1,000 tons.

In 2013, production of iodine increased by about 4% to 500 tons from 480 tons in 2012. In 2017,
its production reached to 543.8 tons. 42

4.2.1. “Khazar” Chemical Plant

One of the oldest enterprises of the chemical industry of Turkmenistan is the Khazar plant. The first
10 tons of technical iodine was shipped from its territory in 1932. In industrial volumes, it was
produced in 1938. The production of iodine is obtained by air desorption which allows to increase
the volumes of finished products and improve production conditions.

The priority production of the plant is technical iodine of two grades "A" and "Ч", differing in
consistency and degree of purification, as well as iodine derivatives - iodine potassium and
potassium iodate. On the basis of the existing line of potassium iodide, the release of iodine-acid
potassium, used in animal husbandry put in place. It was also developed and introduced a
43
technology for the production of potassium iodate of the brand "ЧДA" which main consumer is
“Guwlyduz” combine, where special processing lines for salt iodization operate. In addition to
iodine production, the plant includes a technical oxygen plant and a carbon black plant.

The plant operates on local raw materials - underground iodine-containing natural and associated
waters extracted from oil and gas production.44

Pg 18 of 28
Along with other iodine production enterprises, the “Khazar” plant intends to increase its production
capacities. Recently, it announced a tender for building a plant with annual capacity of 300 tons of
iodine and 4,500 tons of bromine and bromine-containing products. 45

4.2.2. “Balkanabat”, “Bereket” Iodine Plants

Located in Vyshka settlement, 26 km southwest from Balkanabat city the plant was put in operation
in 1969. It has two bases on Boyadag (not far from Gumdag city) and Nebitdag-Monzhukly fields
(Uzboy village).

According to the tender announced in May 2018, the new plants with a designed annual capacity
of 240 tons of iodine and 2,400 tons of bromine and bromine containing products in Boyadag
deposit, 200 tons of technical iodine and 2,000 tons of bromine and bromine containing products in
Nebitdag-Monzhukly deposit of “Balkanabat” iodine plant will come into operation during the seven
years development period of the country. In this connection the production capacities of
“Balkanabat” iodine plant will significantly increase. 45

In addition to the oil iodine plant located near the settlement of Danatar of Bereket district of Balkan
province the new iodine producing enterprise with a capacity of up to 150 tons of crystals per year
will be introduced. Iodine at the plant will be extracted from underground natural waters, which will
be lifted along the drilled wells at a depth of 500 meters. The new industrial facility will produce up
to 150 tons of products. Taken samples showed high iodine content of 200 milligrams per liter. 46

In 2014, in Bereket city, a working pharmaceutical company has been established to produce
250,000,000 iodine sticks, 50,000,000 iodine pencils and 500,000 dental tampons a year.

Specialists of chemical company "Himiya - Senagat" are completing the construction of another
plant in in Ekerem - to extract iodine from the associated waters of oil fields. Here, Iranian
equipment for processing industrial waters has already been installed, which will make it possible
to produce up to 60 tons of crystals per year at the initial stage. For the treatment of industrial
waters containing a reactive non-metal, belonging to the group of halogens, an air-desorption
method is chosen which, compared to others, is simple and less time-consuming. 47

4.3. Salt production plants

4.3.1. Combine "Guwlyduz"

The combine was formed in 1965 by the shores of lake Guwly. 48 A large-scale reconstruction was
carried out in 2012.49 The enterprise produces edible salt, extracted from the self-healing salt lake
Guwly. The complex is located in the Guwly-Mayak settlement in Turkmenbashi district of Balkan
province. The complex was established in 1965 on the basis of a mine which in operation since
1895.

Pg 19 of 28
The state concern "Turkmenhimiya" and the local firm "Dana gurlushyk" signed a contract for the
construction of a workshop that would be able to issue 40,000 tons of iodized edible salt and 2,500
tons of technical salt per year in 2016 which increased the combine’s capacity in 2017.

At present, the “Guwlyduz” combine is the only functioning enterprise for the production of table
salt in Turkmenistan. Since September 1996, with the technical assistance of UNICEF and the
Academy of Sciences of Turkmenistan, the plant has started universal iodization of edible salt.
Annually, the "Guwlyduz" combine produces about 30,000 tons for free supply of the entire
population of Turkmenistan with iodized salt.48

4.3.2. PA “Garabogazsulfat”

Legally, from April 15, 1929, the trust began to function, which then became known as the combine
and finally the production association "Garabogazsulfat". These names change only in connection
with the growth of the capacity of the enterprise. Since 1930, the extraction of sodium sulphate
passes to a higher technological level - the basin method. The association used the buried
50
intercrystalline brines of the Garabogaz bay as raw material.

The main products of the PA are bischofite, epsomite, sodium sulfate, medical glauber's salt, sea
salt.

According to the National Socio-Economic Plan of Turkmenistan for 2018-2024 years the plant to
produce Sodium Sulfate on “Garabogazsulfat” PA will be constructed. The capacity of the plant will
be 60,000 tons yearly and will be valued around 214,285 USD.

4.4. PA “Turkmenmineral”

The PA “Turkmenmineral” is located in the city of Magdanly (former Gaurdak) in Lebap province.
The enterprise was established in 1934.

Besides the sulfur ground of four types, the specialists of the enterprise conduct inert materials
production, supply gypsum-anhydrite additives to the “Turkmencement” enterprise, caustic
dolomite to the “Maryazot” required for the production of ammonium nitrate. In addition, the
production of various non-metallic building materials, chlorinated and building lime and calcium
carbide used in welding operations is imposed here.51

5. List of Products and Main Production Facilities

Products

Below is the list of main products of chemical industry of Turkmenistan. From the beginning till
25th of June this year (2018) only nine items were the subject of trade (according to the State
Commodity and Raw Materials Exchange of Turkmenistan) which in total makes 825,100 tons of
products for trade the given period (table 1).
Pg 20 of 28
 Products for trade
State
during
Product Types Produced at Standar
01.01.18-25.06.18
d Code
(tons)
1 CARBON BLACK K-354 “Khazar” Chemical Plant 7885 2,500.00

(P.A.) / “Khazar” Chemical Plant

2 POTASSIUM IODIDE, КI 4232-74
(P.)
“Khazar” Chemical Plant
3 BROMINE IRON

“Khazar” Chemical Plant

4 IODOFORM

“Khazar” Chemical Plant

5 TERCHNICAL CARBON

“Khazar” Chemical Plant

6 BLEACHING AGENT

“Khazar” Chemical Plant,

7 TECHNCIAL IODINE, I2 A “Balkanabat”, “Bereket” 545-76 100.00
Iodine Plants
High /
8 TABLE SALT(Iodized), NaCl Combine "Guwlyduz" 630-2003 46,000.00
First
High /
SODIUM CHLORIDE (salt)
9 First / Combine "Guwlyduz" 280,000.00
for Industrial Use, NaCl
Second
7759-73
MAGNESIUM CHLORIDE (ISO
10 PA "Garabogazsulfat" 17,500.00
(BISHOFIT), MgCl2*6H2O 9001-
2002)
MAGNESIUM SULFATE
11 PA "Garabogazsulfat"
(EPSOMITE)

12 SODIUM SULFATE B PA "Garabogazsulfat" 44,000.00

13 GLAUBER SALT (MIRABILITE) PA "Garabogazsulfat"

Turkmenabat Chemical
14 TECHNICAL SULFUR ACID 320,000.00
Plant
Turkmenabat Chemical
15 AMMONIUM SUPERPHOSPHATE
Plant
Turkmenabat Chemical
16 AZOPHOSPHATE
Plant
ENVIRONMENT FRIENDLY Turkmenabat Chemical
17
OXYHUMATE Plant
Turkmenabat Chemical
18 LIQUID GLASS
Plant
"Marykarbamide"
A (High /
19 CARBAMIDE, H2N-CO-NH2 Plant /"Tedjenkarbamide"
First)
Plant
B (High, "Marykarbamide"
20 CARBAMIDE, H2N-CO-NH2 First, Plant /"Tedjenkarbamide" 100,000.00
Second) Plant
"Marykarbamide"
21 AMMONIA Plant /"Tedjenkarbamide
" Plant

Pg 21 of 28
 22 AMMONIUM NITRATE PA "Maryazot"

23 NITRIC ACID PA "Maryazot"

Fine-
FINE-GRAINED POTASSIUM
24 grained Combine "Garlyk" 4568-95 15,000.00
CHLORIDE
(First)
9990 /
9992 /
25 SULFUR GROUND PA "Turkmen Mineral"
9995 /
9998

26 MEDICAL GYPSUM PA "Turkmen Mineral"

27 CONSTRUCTION GYPSUM PA "Turkmen Mineral"

28 CAUSTIC DOLOMITE PA "Turkmen Mineral"

29 CELESTITE CONCENTRATE PA "Turkmen Mineral"

30 CALCIUM CARBIDE PA "Turkmen Mineral"

Table1. List of Main Chemical Products

List of the main operating production facilities of chemical products in Turkmenistan.

Project
End product Construction
Facility name Location Executed by: price
(tons) (year)
(approx.)

“Gap Inshaat
Plant 350,000 Tedzhen town, 07/2001- 240 mln
1 Yatirim ve Dis
“Tedjenkarbamid” carbamide Akhal Province 3/2006 USD
Ticaret AS”

In 1984 the 70%

of PA's
450,000 S.Turkmenbashi
equipment was
2 PA “Maryazot” ammonium village, n/a
provided by
nitrate Mary province
Russian company
"Uralkhimmash"
2x ammonia
aggregates AM-600;
aggregate of weak
nitric acid AK-72;
aggregate of
ammonium nitrate
АС-72.
“Kawasaki Plant
400,000 Systems” and
Plant ammonia Mary city, “Sojitz 1.3 billion
3 2011-2014
“Marykarbamid” 640,000 Mary province Corporation” / USD
carbamide “Ronesans
Endustri Tesisleri”

Turkmenabat during USSR

4 Lebap Province
Chemical Plant period

Phosphorous 225,000
Turkmenabat
Fertilizer production phosphorous n/a
Chemical Plant
complex fertilizer
Pg 22 of 28
 “Mitsui
Sulfuric Acid Engineering &
500,000 sulfur Turkmenabat 1985; 200 mln
production complex Shipbuilding Co.,
acid Chemical Plant 2013-2016 USD
which includes: Ltd” / “Ronesans
Endustri Tesisleri”
1100
environmentally Turkmenabat
production complex 2018
friendly Chemical Plant
oxyhumate
Turkmenabat
production complex 100 liquid glass 2018
Chemical Plant
Garlyk field,
“Garlyk” Mining 1,400,000 JSC
Koytendag 06/2009- 1 billion
5 and Processing potassium "Belgorkhimprom
district, Lebap 04/2017 USD
plant chloride "
province
sulfur gorund,
caustic
dolomite,
PA celestite Magdanly city,
6 1934
“Turkmenmineral” consentarte, Lebap Province
calcium
carbide,
gypsium
iodine,
potassium
iodide,
potassium
“Khazar” Chemical Cheleken field,
7 iodate, bromine 1932
Plant Balkan Province
iron, iodoform,
carbon black,
bleaching
agent
Vyshka
settlement in
Balkan province
“Balkanabat”
8 iodine (bases in 1969
Iodine Plant
Boyadag field,
Nebitdag-
Monzhukly field)

“Bereket” Iodine during USSR

9 iodine
Plant period

sodium In 2012 the

chloride, Guwlymayak combine was
Combine
10 (around) 40 settlement, 1965 reconstructed by
“Guwlyduz”
table salt Balkan province local company
iodized "Dana Gurlushyk"
Sodium
sulphate, Garabogaz
PA
11 bischofite, (Bekdash) town, 1929
“Garabogazsulfate”
epsomite, Balkan province
mirobilite
Table2. Main operating production facilities of chemical products

Pg 23 of 28
 6. Future projects

Projects Constru
End product Constructed Project price
(ongoing / Location ction
(tons) by: (approx.)
future) (year)
"Mitsubishi
Garabogaz 660,000 Ammonia Garabogaz 08/2014 Corporation"/
5,495,333,000
1 Carbamide 1,155,000 town, Balkan - "Gap Inshaat
TMT
plant Carbamide province 06/2018 Yatirim ve Dis
Ticaret AS"
300 iodine and
iodine containing Cheleken field,
Iodine, Bromine n/a (Tender
products “Khazar” 2018-
2 production announced in n/a
4,500 bromine and Chemical 2021
plant May 2018)
bromine containing Plant
products

240 iodine
Iodine, Bromine Boyadag field, n/a (Tender
2,400 bromine and 2018-
3 production “Balkanabat” announced in n/a
bromine containing 2021
plant Iodine Plant May 2018)
products

Nebitdag-
200 iodine
Iodine, Bromine Monzhukly n/a (Tender
2,000 bromine and 2018- 280,974,000
4 production field, announced in
bromine containing 2021 TMT
plant “Balkanabat” May 2018)
products
Iodine Plant

Concentrated
300,000
Phosphorous Turkmenabat n/a (Tender
concentrated 2018- 1,925,000,000
5 Fertilizer Chemical announced in
phosphorous 2021 TMT
production Plant May 2018)
fertilizer
complex

Caustic Soda, 15,000 caustic

Uzboy field,
Chlorine soda, 2019- 342,000,000
6 Balkan n/a
production 13,500 chlorine and 2022 TMT
province
plant chlorine products

Sodium PA
60,000 sodium 2022- 750,000,000
7 Sulphate "Garabogazsul n/a
sulphate 2024 TMT
producing Plant fat"
300,000 ammonium
nitrate
460,000 carbamide 4,200,000,000
n/a (General
Plant to 20,000 UF-85-60 TMT (value for
Tender
produce carbamide Mary city, 2022- ammonium
8 announced in
nitrogen formaldehyde Mary province 2026 nitrate and
September carbamide plant
fertilizers concentrate
2016) only)
20,000 methanol
400,000 ammonia
235,000 nitric acid
Carbamide
20,000 carbamide n/a (Tender
Formaldehyde “Marykarbamid
9 formaldehyde n/a announced in n/a
Concentrate ” plant
concentrate June 2018)
Unit
Table3. Future chemical facilities projects

(Note: prices indicated in the table 3 are taken from the National Socio-Economic Program of Turkmenistan
for the period of 2018-2024 years.)

Pg 24 of 28
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