Turkish-Qatari partnership to reduce CAD
Turkey-based Metcap Energy Investments and Qatar-based Fusion Dynamics have signed a protocol for natural gas and petrochemical investments worth $5.2 billion. The bulk of the money - $4 billion - will be for the constuction of a natural gas-based chemical plant in the Trakya Basin with an annual production capacity of 2.6 million tonnes of methanol and one million tonnes of light olefins. It is expected reduce Turkey’s current account deficit by $1.4 billion per year.
The remaining $1.2 billion will be invested in Natural Gas Combined Cycle Power Plants, which are already under construction in Kirklareli and Karaman. The 1.55 MW capacity plants are expected to operate with a net efficiency of up to 63 percent and will meet about 5 percent of Turkey’s total electricity production needs. Metcap and Fusion will operate under three jointly-owned subsidiaries, Metcap Petrochemicals, Verbena Energy and Komet Energy Consortium.
Work on the projects will be commissioned in phases starting 2020 and all investments will be completed by 2023. The power plant projects, run by Verbena Energy and Komet Energy, will be fitted with the most advanced Technologies available, including General Electric’s 9HA.02 turbines and the world’s largest, most efficient and flexible system against possible disruptions. Both plants will be constructed and operated by General Electric.
An mportant f rst step
Speaking at the signing ceremony attended by Mohammed Al-Hajri, President of Fusion Dynamics in Ankara, Metcap Energy Investments President Celal Metin underlined that the plastic sector has been successful in Turkey despite the high import rate of input materials. “These investment will not only cut down imports but will also provide serious added-value,” he said, noting that this is not his first billion dollar project. “I am very excited about this facility. We are building crtitical infrastructure, and this will expand.”
Most important, Metin added, is the contribution the plant will make to the production of high value-added polyethylene and polypropylene. “Turkey annually im- ports 2.5 million tonnes each of polyethylene and polypropylene,” he said. “Despite being in the industry for many years, our competitor, Petkim, can only meet five percent of Turkey’s total needs. We are planning to produce 600,000 tonnes of polypropylene and 400,000 tonnes of polyethylene which will meet 35 percent of Turkey’s needs. This will make a significant contribution to Turkey’s economy.”
Mohammed Al-Hajri, President of Fusion Dynamics, added: “Natural gas will continue to be the key fuel for power plants for the foreseeable future. Given the dynamism of the energy market, high efficiency and flexible technologies are the main elements of competitive advantage.”