Turkmenistan-Korea make further accomplishments

Back in 2008, Korea and Turkmenistan have signed a memorandum of understanding in order to make further advancement into infrastructural areas such as construction, transportation and port facilities and have pledged economic cooperation between the two countries.

LG International Corp. (LGI) and Hyundai Engineering Co. (HEC) Consortium has contributed greatly in drawing an officially full-scale bilateral cooperation between the two countries.

The first project order won by LGI-HEC consortium in December of 2009 — the construction of the “Galkynysh Gas Treatment Plant” — is the biggest project ever in Turkmenistan history with $8.5 billion worth of funds have been invested. State Gas Corporation Turkmengas had initially ordered the project breaking it down into four parts, and one of them which amounts to 1.3 billion project has been won by the LGI-HEC consortium.

Having predicted the growing potential of Turkmenistan as an emerging market, LGI established a branch in the capital of Turkmenistan, Ashgabat at the end of 2007 and made continuous efforts to create business opportunities since then.

The Galkynysh Gas Treatment Plant Project Order won by LGI-HEC consortium drew great attention from the industry as an unprecedented accomplishment in the untapped market for a Korean company. This has a significant meaning in that it has established a foothold for Korean companies to takeoff advancing into additional plant businesses and resource development fields in Turkmenistan and Central Asia.

The Galkynish Gas Treatment Plant, completed back in September of 2013, is producing 10 billion cubic meters of natural gas annually through desulfurization process in which the sulfur included in the natural gas is removed.

Based on this experience as a stepping stone, both companies have successfully won a series of project orders in Turkmenistan. In May of 2012, they have won the “Modernization of Turkmenbashi Oil Processing Complex” project which worth $460 million ordered by Turkmenbashi Oil Processing Complex, a State Oil Corporation.

In succession, in July of 2013, they have also won “Gas Treatment Plant on shore gas terminal” project in Kiyanly that worth $240 million ordered by local subsidiary of Malaysian State Oil Corporation, Petronas Carigaly located in Turkmenistan.