Industry Trend Analysis - Domestic Gas Consumption Set To Decline - DEC 2017
BMI View : Domestic g as consumption in Turkmenistan will decline following the reduction of welfare subsidies. The country's natural gas exports will be constrained by the limited export opportunities .
The end to generous subsidies in Turkmenistan is part of the government's strategy to promote the more sustainable use of natural resources and progress economic diversification. Although the transition process towards a market economy has been long and so far has failed to substantially reduce the country's reliance on the natural gas sector, the decision to curb state subsidies will have a direct impact on domestic gas consumption.
Turkmens have enjoyed free access to natural gas, water and electricity leading to inefficient consumption. The decision to gradually reduce welfare subsidies, is expected to generate savings that would be used to finance a USD69bn seven-year investment programme which includes the revitalisation of the energy sector.
|Natural Gas Consumption Driven By The Industrial Sector|
|Natural Gas Consumption, bcm|