BAKU, Azerbaijan, September 4. On August 30,
2026, Japanese Foreign Minister Toshimitsu Motegi visited
Turkmenistan, where he held talks with President Serdar
Berdimuhamedov and Foreign Minister Rashid Meredov. The sides
discussed the development of bilateral relations, with particular
attention to trade and economic cooperation, advanced technologies,
and artificial intelligence.
A key economic outcome was Japan’s expressed interest in
participating in projects aimed at further diversifying
Turkmenistan’s economy. The sides also highlighted the experience
already accumulated by Japanese companies in gas chemistry, power
generation, and industry. The talks resulted in the signing of a
Cooperation Program between the foreign ministries of the two
countries for 2027-2029.
Tokyo’s stated interest in supporting the diversification of
Turkmenistan’s economy is backed by an already established
foundation of cooperation. According to the Turkmen side, 44
investment projects involving Japanese companies have been
implemented or are underway in the country, with a total value of
more than $11 billion. The most active Japanese partners include
Itochu Corporation, Kawasaki Heavy Industries, Mitsubishi
Corporation, Sojitz, Toyo Engineering, Mitsui and Sumitomo
Corporation.
For many years, the core of this presence has been projects
focused on natural gas processing and the production of higher
value-added products. One of the earliest major examples was the
ammonia and urea plant in Mary, built by Kawasaki Heavy Industries
and Sojitz and commissioned in 2014. Japanese companies
subsequently participated in the development of other major
chemical industry facilities. Mitsubishi Corporation and Mitsubishi
Heavy Industries were involved in the construction of the
Garabogazkarbamid plant, while Toyo Engineering participated in the
Kiyanly gas chemical complex, which produces polyethylene and
polypropylene.
This specialization became even more pronounced with the Ahal
GTG project. Kawasaki Heavy Industries served as a key technology
and engineering partner in the construction of the natural
gas-to-gasoline plant, which was commissioned in 2019. The facility
has a production capacity of up to 600,000 tons of gasoline per
year. Japanese involvement has therefore gradually covered
different stages of hydrocarbon processing, ranging from
fertilizers and polymers to synthetic fuel.
At the same time, Japan’s presence has not been limited to the
construction of such facilities. After major projects are
completed, Japanese companies continue to work with the
infrastructure they helped create, providing technical maintenance,
spare parts and equipment modernization. Kawasaki, for example,
continues to provide technical support for Ahal GTG, Mitsubishi
Heavy Industries provides services for equipment at the
Garabogazkarbamid plant, while Toyo Engineering returned to the
Kiyanly complex as part of its restoration and modernization
efforts. This creates a long-term presence for Japanese businesses
that extends well beyond the initial EPC contract.
Japanese companies have also expanded their involvement in the
power sector. One of the largest projects was a 432-MW gas-fired
power plant in Lebap Velayat, implemented with the participation of
Sumitomo Corporation and Mitsubishi Hitachi Power Systems. The
Japanese side supplied key equipment and engineering solutions,
while the project received support from Japanese export financing.
Here too, cooperation did not end with the commissioning of the
plant: Sumitomo continues to participate in its technical
maintenance and is considering further development of the
facility.
Beyond heavy industry, Japanese companies have established a
broader commercial presence. Itochu has supplied Komatsu
construction and road-building machinery to Turkmenistan for many
years, while Sumitomo has developed its automotive business,
including the supply of Toyota vehicles. These activities differ in
nature from major gas chemical complexes, but demonstrate that
Japanese businesses have established themselves in the country not
only as contractors for state industrial projects, but also as
long-term suppliers of technologies, equipment and products.
This traditional model is now gradually expanding. In addition
to energy and industry, artificial intelligence, digital
technologies, data centers, space and satellite solutions, and more
efficient resource-use technologies are emerging on the
Japanese-Turkmen agenda. Some of these initiatives remain at the
memorandum or project-preparation stage, but the shift in focus
itself is significant: Japanese companies are seeking to apply
their accumulated industrial experience to new segments of
Turkmenistan’s economy.
Overall, Japan’s presence in Turkmenistan can no longer be
reduced to the construction of major gas chemical facilities. Based
on the activities of Japanese companies in the country, it is
possible to identify a three-stage model. The first stage focused
on establishing an industrial base through fertilizer plants,
polymer production, synthetic fuel and power generation facilities.
The second stage has been characterized by the continued
involvement of Japanese businesses through servicing, modernization
and equipment supplies. A third stage is now emerging, in which
traditional energy and industrial projects are being complemented
by AI, digital technologies, space solutions and other areas. This
sequence makes it possible to view Japan’s current proposal to
support the diversification of Turkmenistan’s economy as a
potential expansion of an already established model of
engagement.
The interest of Japanese businesses in further cooperation with
Turkmenistan is also reflected in statements made by the companies
themselves in interviews with Trend. Their responses
show that this interest is gradually extending from traditional
areas into a broader range of activities related to industrial
development, technology and infrastructure.
Mitsubishi Heavy Industries specifically highlighted the
prospects of Turkmenistan’s chemical and petrochemical sectors,
linking them to the country’s resource base and its efforts to
increase value-added processing.
"We recognize the potential of Turkmenistan's chemical and
petrochemical sectors, particularly in light of its natural gas
resources and initiatives to enhance value-added processing", the
company said in an interview with Trend.
Kawasaki Heavy Industries, for its part, said in an interview
with Trend that "Our primary
focus is on industrial modernization. However, we aim to leverage
our solutions to expand into other sectors as well".
Sumitomo Corporation also directly linked its continued
involvement to the long-term nature of relations between the two
countries. In an interview with Trend, the company
stressed that it has extensive experience in Turkmenistan and
remains interested in further deepening economic ties.
"Sumitomo Corporation has conducted several businesses in
Turkmenistan over the years and highly values its longstanding
relationship with the country", the corporation said.
Sumitomo also noted that the expansion of cooperation is taking
place not only at the level of individual companies, but also
within broader intergovernmental efforts.
"We recognize that various efforts to promote economic
cooperation between Japan and Turkmenistan are being pursued at
both governmental and private-sector levels, and we hope that such
cooperation will continue to grow and deepen in the years ahead",
the company emphasized.
For Toyo Engineering, which has extensive experience in
Turkmenistan’s industrial sector, its priorities also remain linked
to the development of natural gas-based production. In an exclusive
interview with Trend, the company reaffirmed its interest in
continuing to contribute to the country’s industrial
development.
"TOYO remains interested in contributing to Turkmenistan’s
industrial development, particularly in the gas-chemical and
fertilizer sectors, while evaluating each future opportunity on its
technical and commercial merits", the company said in an exclusive
interview with Trend.
A more specialized approach is demonstrated by Tohkemy
Corporation. In an interview with Trend, a company
representative said that it is looking to develop water
desalination projects in Turkmenistan, primarily small- and
medium-scale projects targeting rural areas.
"We are aiming medium and small size of desalination for rural
area. As for large one we will cooperate with Japanese large
company with our close relationship," the Tohkemy Corporation
representative said.
Meanwhile, the experience of Japanese businesses in other
countries shows that their international activities traditionally
extend beyond equipment sales or direct investment in individual
enterprises. Japanese companies, particularly in industry,
generally seek to become part of a longer value chain, covering
everything from project design and technology supply to production,
operation, maintenance and subsequent modernization.
This model is particularly evident in Asia. Since the 1980s,
Japanese manufacturers have actively relocated production capacity
to ASEAN countries, creating regional production networks. Today,
around 11,000 overseas establishments of Japanese manufacturing
companies operate in Asia. At the same time, Japanese expansion is
gradually moving beyond simple production localization, with
companies focusing on developing local supply chains, serving local
markets, promoting technological cooperation and improving
production efficiency.
Vietnam provides a telling example. Japanese businesses there
are involved not only in trade, but also in manufacturing,
information technology, research and development, consulting and
other fields. According to the Japan External Trade Organization
(JETRO), of 5,257 approved Japanese investment projects in Vietnam
between 1988 and 2023, 1,952, or 37.1%, were in manufacturing. At
the same time, 14.4% were in information technology, while 15.4%
were in consulting, including architecture, engineering and
research and development.
Thus, the Japanese model increasingly combines industrial
production with technology, engineering expertise and services.
This does not necessarily mean the most high-tech industries in the
narrow sense. More important is whether a project enables the
production of more sophisticated goods, improves productivity,
establishes a local industrial base and moves the country higher up
the value chain.
This approach has also become increasingly explicit in Japan’s
government policy in recent years. Japan’s Ministry of Economy,
Trade and Industry (METI), in its 2025 strategy for international
trade and the economy, directly points to the need to use overseas
markets and investment to maximize the added value of the Japanese
economy. At the same time, the Japanese government seeks to support
high-value-added activities by Japanese companies overseas, promote
cooperation with countries of the Global South and diversify supply
chains.
The 2026 strategy further develops this approach. Among the
opportunities for Japanese businesses in developing countries, METI
highlights strengthening energy value chains based on Japan’s
technological capabilities, developing industrial and urban
infrastructure, and introducing new technologies, including
artificial intelligence solutions. At the same time, increasing the
global added value of the Japanese economy remains a strategic
objective.
Another feature of the Japanese model is the close connection
between business and government financial and development
institutions. Japan’s revised Development Cooperation Charter of
2023 established the concept of "co-creation". Under this approach,
governments, the private sector and public financial institutions
combine technologies, knowledge, expertise and financial resources.
Japan explicitly envisages a model in which public assistance can
be used to create basic infrastructure, while the private sector
takes responsibility for investment, operation and maintenance.
This distinguishes the Japanese approach from a model in which a
foreign company enters a market primarily to build an individual
facility or supply equipment. It is in this context that Japan’s
presence in Turkmenistan should be viewed. Historically, the
largest Japanese projects in the country have focused on gas
chemistry, fertilizer production, natural gas processing and power
generation. In other words, Japan has already participated in
creating industries that turn Turkmenistan’s natural resources into
more sophisticated products, including polyethylene, polypropylene,
urea, ammonia and gasoline.
In other words, the Japanese approach to diversifying
Turkmenistan’s economy can broadly be described as creating added
value through technology, engineering expertise and long-term
project support. This is why the experience of Japanese companies
in Turkmenistan is important not only in terms of the scale of
projects already implemented, but also as a potential foundation
for the country’s next stage of industrial diversification.
