VZCZCXRO0329
PP RUEHIK
DE RUEHAH #1579/01 3421059
ZNR UUUUU ZZH
P 081059Z DEC 09
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 3862
INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
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RUEHBJ/AMEMBASSY BEIJING 3662
RUEHKO/AMEMBASSY TOKYO 3521
RUEHIT/AMCONSUL ISTANBUL 4210
RUCNDT/USMISSION USUN NEW YORK 1297
RHMCSUU/CDR USCENTCOM MACDILL AFB FL
RUEHVEN/USMISSION USOSCE 4153
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC

UNCLAS SECTION 01 OF 02 ASHGABAT 001579 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR SCA/CEN; EEB; NEA/IR 
ENERGY FOR EKIMOFF/BURPOE/COHEN 
COMMERCE FOR EHOUSE 
 
E.O. 12958: N/A 
TAGS: EPET PGOV EINV TX
SUBJECT: TURKMENISTAN'S HIGH DOMESTIC NATURAL GAS CONSUMPTION 
 
ASHGABAT 00001579  001.2 OF 002 
 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY: Turkmenistan has one of the highest per 
capita natural gas consumption rates in the world, which is 
quite unusual for a country with a population between five and 
six million and a generally undeveloped industrial sector. 
The main reasons for the high consumption rate are reportedly 
inefficient use of energy by industries and households, 
deteriorating local gas distribution networks, the general 
presumption of endless gas reserves, and the government's 
"free gas" policy.  Although the inefficient use of natural 
gas raises concerns among industry experts, the GOTX has yet 
to develop a program to encourage energy efficiency.  Public 
opinion on gas consumption is that the people of Turkmenistan 
have an inalienable right to use the natural resources of the 
country as they please.  END SUMMARY. 
 
¶3.  (SBU) Turkmenistan's natural gas consumption has almost 
doubled over the last decade and is now about 20 billion cubic 
meters (bcm) per year, which brings the per capita consumption 
to approximately 4,000 cubic meters per person annually.  The 
sharp increase in natural gas consumption can be explained by 
the increased number of electric power stations that utilize 
natural gas to produce electricity.  The Turkmen Government 
has built four new power stations since the mid 90s with a 
total capacity of 880 megawatt-hours.  Although the new power 
stations reportedly have good energy efficiency features, 
the GOTX chooses to light not only minor streets, but also the 
exteriors of all new public and residential buildings, which 
remain illuminated all night long, giving Ashgabat a Las 
Vegas-esque quality. 
 
¶4.  (SBU) Moreover, according to a former employee of the 
Ministry of Energy, the Mary power station, which is the 
largest such facility in the country and the largest consumer 
of natural gas, produces electricity at a very low efficiency 
rate, due to the poor condition of the station's equipment. 
Of the station's eight power-generating units, only one unit 
was renovated in 2006, and the other seven consume more gas 
than they would consume if they were properly maintained. 
 
¶5.  (SBU) Turkmen citizens have been getting natural gas for 
their households free-of-charge since 1993, which has resulted 
in increased and inefficient consumption at the household 
level as well.  Moreover, people residing in rural areas have 
taken advantage of free natural gas to develop greenhouse 
agriculture production.  They build greenhouses at their plots 
of land and use natural gas, which they receive free-of-charge 
for their household, to heat their greenhouses by directly 
burning natural gas in greenhouses instead of installing steam 
heating systems that are more energy-efficient, but are 
expensive. 
 
¶6.  (SBU) In general, people believe that they do not get much 
benefit from natural gas exports, which are the main source of 
revenue for the Turkmen government.  As a result, they feel 
entitled to use as much free gas as they want.  Also, many 
Turkmen assume that natural gas reserves are an endless 
resource.  The GOTX regularly fuels this assumption stating 
that natural gas reserves will last for hundreds of years. 
Nevertheless, during severe winters, some rural areas have 
reported shortages of natural gas caused by high export 
demands and leaks from distribution networks. 
 
¶7.  (SBU) Deteriorating local gas distribution networks, which 
service more than 90 percent of the population, also 
contribute to increased gas consumption.  Most of the gas 
distribution networks servicing rural areas were built in the 
late 80s and early 90s and have seen very little of 
 
ASHGABAT 00001579  002.2 OF 002 
 
 
maintenance since that time.  As a result, gas leaks are 
reportedly common throughout the local distribution system and 
can lead to significant losses.  The GOTX has contributed 
little toward upgrading local distribution networks, 
reportedly because they are not crucial for revenue-generating 
exports. 
 
¶8.  (SBU) COMMENT: Turkmenistan's domestic natural gas 
consumption is set to grow in the short and mid-term. 
Consumption growth will be driven by the GOTX's plans to 
increase electricity production through the construction of 
new power plants and upgrading existing ones.  At the same 
time, the inefficient use of natural gas by the public has 
been exacerbated by the notion that, for many people, free gas 
in their homes is the only tangible benefit they see in a 
country that has abundant natural gas.  END COMMENT. 
 
ECKSTROM