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Japan's Mitsubishi Corporation has started building a large urea production facility in western Turkmenistan, valued at more than USD 1.3 billion. The plant, located at Kiyanly on the Caspian Sea coast, will have the capacity to produce 3,500 tons of urea and 2,000 tons of ammonia per day. Turkey's Gap ?n?aat has been awarded the construction contract. Turkmenistan, which holds the world�s fourth-largest natural gas reserves, is looking to reduce its reliance on gas exports and boost value-added chemical production.
Japan's Mitsubishi Corporation has begun construction on a new urea manufacturing plant in Turkmenistan, according to a source in the country's chemical industry. The facility is being developed at Kiyanly, situated on the Caspian Sea coast in Turkmenistan's far west. The project, estimated to cost more than USD 1.3 billion, is planned to be completed between 2028 and 2029. Once operational, the plant is expected to produce around 3,500 tons of urea and 2,000 tons of ammonia each day. The construction contract has been awarded to Turkey-based Gap ?n?aat. Mitsubishi has not yet issued an official statement regarding the development. Advertisement
Turkmenistan has long been known for its substantial natural gas resources, ranked as the fourth largest globally, and it remains a major supplier to China. However, in recent years, the government has been taking steps to diversify its economy by investing in the chemical and fertiliser industries. The new urea facility is seen as part of this strategy to create value-added products from its vast gas reserves instead of exporting raw natural gas.
This will not be Mitsubishi's first major project in Turkmenistan. In 2018, a Japanese-Turkish consortium that included Mitsubishi and Gap ?n?aat developed a similar fertiliser plant worth over USD 1.3 billion in Garabogaz, located near the Caspian coast. That facility was designed to produce comparable volumes of urea and ammonia, marking an important milestone in the country's industrial diversification.
According to local reports, Turkmenhimiya-the state-owned chemical concern-has been authorised to oversee the new project. It includes not only the main production unit but also supporting infrastructure and landscaping of the surrounding area. The project is expected to generate employment opportunities during construction and operation, and is likely to strengthen Turkmenistan's export potential in the regional fertiliser market once completed.
Source Reuters
5th Jun, 2025
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