A waste of energy

Turkmenistan has the potential to become an important energy source at the crossroads between Europe and Asia due to the drastic energy shift in European, Eurasian and Asian energy landscapes. Recent developments indicate Turkmenistan could change future energy flows due to the war in Ukraine, which could also help its over-reliance on China.

The ups and downs of the global hydrocarbons market strongly affect Turkmenistan, for its economy and exports are heavily dependent on natural gas. The COVID-19 pandemic battered the country, reduced energy demand and worsened domestic woes, such as reported food shortages, emigration and inflation. The economy appears to have struggled to recover from the 2014-15 drop in global energy prices, with IMF data indicating negative growth in 2016, 2019 and 2020. In seeking to recover, Ashgabat appears to be focusing on increasing its dependence on China by enlarging pipeline capacity.