The country possesses the world's fourth largest reserves of
natural gas and substantial oil resources. Turkmenistan has taken a cautious approach to economic reform, hoping to use gas and cotton sales to sustain its economy. In 2019, the unemployment rate was estimated to be 4.27%. coupled with continued low hydrocarbon prices and reduced Chinese purchases of natural gas. One reflection of economic stress is the black-market exchange rate for the Turkmen manat, which though officially set at 3.5 manats to the US dollar, reportedly was trading in November 2022 at 18.5 manats to the dollar. President Niyazov spent much of the country's revenue on extensively renovating cities, Ashgabat in particular. Corruption watchdogs voiced particular concern over the management of Turkmenistan's currency reserves, most of which are held in off-budget funds such as the Foreign Exchange Reserve Fund in the
Deutsche Bank in
Frankfurt, according to a report released in April 2006 by London-based non-governmental organization
Global Witness. According to a decree of the Peoples' Council of 14 August 2003,
electricity,
natural gas,
water and
salt were to have been subsidized for citizens until 2030. Under implementing regulations, every citizen was entitled to 35 kilowatt hours of electricity and 50 cubic meters of natural gas each month. The state also provided 250 liters (66 gallons) of water per day. As of 1 January 2019, however, all such subsidies were abolished, and payment for utilities was implemented. On 1 January 2026, President
Serdar Berdimuhamedov signed a bill which regulates
virtual assets and makes a liscensing scheme for
cryptocurrency exchanges under the country's national bank.
Natural gas and export routes , the
Galkynysh Gas Field was estimated to possess the second-largest volume of gas in the world, after the
South Pars field in the Persian Gulf. Reserves at the
Galkynysh Gas Field are estimated at 21.2 trillion cubic metres. The Turkmenistan Natural Gas Company (
Türkmengaz) controls gas extraction in the country. Gas production is the most dynamic and promising sector of the national economy. In 2009 the government of Turkmenistan began a policy of diversifying export routes for its raw materials. Prior to 1958, gas production was limited to
associated gas from oil wells in western Turkmenistan. In 1958, the first gas wells were drilled at
Serhetabat (then Kushky) and at Derweze. Russia's
Gazprom announced resumption of purchases in April 2019, but reported volumes remained low compared to previous delivery levels. In 1997, the
Korpeje-Gurtguy natural gas pipeline was built to
Iran. It is 140 kilometers in length and was the first gas pipeline to a foreign customer constructed after independence. In December 2009, the first line, Line A, of the
Trans-Asia pipeline to China opened, creating a second major market for Turkmen natural gas. By 2015 Turkmenistan was delivering up to 35 billion cubic meters per annum (bcma) to China. China is the largest buyer of gas from Turkmenistan, via three pipelines linking the two countries through Uzbekistan and Kazakhstan. In 2019, China bought over 30bcm of gas from Turkmenistan, making China Turkmenistan's main external source of revenue. In 2023, the Turkmenistan Ministry of Foreign Affairs stated that Turkmenistan's quota on this pipeline system was 40 bcma. The
East–West pipeline was completed in December 2015, with the intent of delivering up to 30 bcm of natural gas to the Caspian shore for eventual export through a yet-to-be-built
Trans-Caspian natural gas pipeline connecting the Belek-1 compressor station in Turkmenistan to Azerbaijan. The Turkmenistan government continues to pursue construction of the
Turkmenistan–Afghanistan–Pakistan–India Pipeline, or TAPI. The anticipated cost of the TAPI pipeline is currently estimated at $25 billion. Turkmenistan's section of the pipeline was started in 2015 and was completed in 2019, though the Afghanistan and Pakistan sections remain under construction. In 2025 most of the worlds largest
leaks of methane, a
greenhouse gas which causes
climate change, were from the country. Turkmen settlers in the 19th century extracted oil near the surface and shipped it to
Astrakhan by ship and to Iran by camel caravan. Commercial oil drilling began in the 1890s. The oil extraction industry grew with the exploitation of the fields in Cheleken in 1909 (by
Branobel) and in Balkanabat in the 1930s. Production leaped ahead with the discovery of the Gumdag field in 1948 and the Goturdepe field in 1959. By 1940 production had reached two million tons per year, by 1960 over four million tons, and by 1970 over 14 million tons. Oil production in 2019 was 9.8 million tons. Oil wells are mainly found in the western lowlands. This area also produces associated natural gas. The main oil fields are Cheleken, Gonurdepe, Nebitdag, Gumdag, Barsagelmez, Guyujyk, Gyzylgum, Ordekli, Gogerendag, Gamyshlyja, Ekerem, Chekishler, Keymir, Ekizek, and Bugdayly. Oil is also produced from offshore wells in the Caspian Sea. Foreign firms involved in offshore oil extraction include
Eni S.p.A. of Italy,
Dragon Oil of the United Arab Emirates, and
Petronas of Malaysia. On 21 January 2021, the governments of
Azerbaijan and Turkmenistan signed a memorandum of understanding to jointly develop an oil field in the
Caspian Sea that straddles the nations' border. Known previously as Kyapaz in
Azeri and Serdar in Turkmen, the oil field, now called Dostluk ("friendship" in both languages), potentially has reserves of up to 60 million tons of oil as well as associated natural gas.
Energy Turkmenistan's first electrical power plant was built in 1909 and went into full operation in 1913. As of 2019 it was still in operation. The original triple-turbine Hindukush hydroelectric plant, built by the Austro-Hungarian company
Ganz Works on the Murghab River, was designed to produce 1.2 megawatts at 16.5 kilovolts. Until 1957, however, most electrical power in Turkmenistan was produced locally by small diesel generators and diesel-electric locomotives. Power output in 2011 was 18.27 billion kWh, of which 2.5 billion kWh was exported. which has a rated capacity of 350 megawatts, and the Mary Thermoelectric Power Station, which has a rated capacity of 1,370 megawatts. In 2018, electrical power production totaled more than 21 billion kilowatt-hours. Since 2013, additional power plants have been constructed in
Mary and
Ahal province, and
Çärjew District of
Lebap province. The Mary-3 combined cycle power plant, built by
Çalık Holding with
GE turbines, commissioned in 2018, produces 1.574 gigawatts of electrical power and is specifically intended to support expanded exports of electricity to Afghanistan and Pakistan. The Zerger power plant built by
Sumitomo,
Mitsubishi,
Hitachi, and
Rönesans Holding in
Çärjew District has a design capacity of 432 megawatts from three 144-megawatt gas turbines and was commissioned in September 2021. It is also primarily intended for export of electricity. The Ahal power plant, with capacity of 650 megawatts, was constructed to power the city of Ashgabat and in particular the Olympic Village. Turkmenistan is a net exporter of electrical power to Central Asian republics and southern neighbors. In 2019, total electrical energy generation in Turkmenistan reportedly totaled 22,521.6 million kilowatt-hours (22.52 terawatt-hours).
Agriculture Following independence in 1991, Soviet-era
collective- and
state farms were converted to "farmers associations" (). Turkmenistan started producing cotton in the Murghab Valley following conquest of
Merv by the
Russian Empire in 1884. According to human rights organizations, public sector workers, such as teachers and doctors, are required by the government to pick cotton under the threat of losing their jobs if they refuse. During the 2020 season, Turkmenistan reportedly produced roughly 1.5 million tons of raw cotton. In 2012, around 7,000 tractors, 5,000 cotton cultivators, 2,200 sewing machines and other machinery, mainly procured from Belarus and the United States, were used. Prior to imposition of a ban on export of raw cotton in October 2018, Turkmenistan exported raw cotton to Russia, Iran, South Korea, United Kingdom, China, Indonesia, Turkey, Ukraine, Singapore and the
Baltic states. Beginning in 2019, the Turkmenistan government shifted focus to export of cotton yarn and finished textiles and garments.
Tourism Turkmenistan reported arrival of 14,438 foreign tourists in 2019. Every traveler must obtain a visa before entering Turkmenistan (see
Visa policy of Turkmenistan). To obtain a tourist visa, citizens of most countries need visa support from a local travel agency. For tourists visiting Turkmenistan, organized tours exist providing visits to historical sites in and near
Daşoguz,
Konye-Urgench,
Nisa, Ancient
Merv, and
Mary, as well as beach tours to Avaza and medical tours and holidays in the sanatoria in Mollagara, Bayramaly, Ýylysuw and
Archman. In January 2022 President Gurbanguly Berdimuhamedow ordered that the fire at the
Darvaza gas crater, known informally as the country's "Gateway to Hell", and one of Turkmenistan's most popular tourist attractions, should be extinguished for environmental and health reasons, as well as part of efforts to increase gas exports. A possible explanation for the fire is that a Soviet drilling operation in 1971 caused it; however, in 2013 Canadian explorer George Kourounis examined the crater and believed that no one actually knew how it started. == Transportation ==