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Turkey in China talks for $10 billion power investment deal
- 10 years ago (2014-05-05)
- Junior Isles
Turkey and China are involved in talks on a $10-12 billion investment deal for the Afsin-Elbistan coalfield and power plant project in southern Turkey, according to Turkish Energy Minister Taner Yildiz.
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Turkey signed a deal with Abu Dhabi National Energy Co (TAQA) regarding the Afsin-Elbistan project over a year ago in January 2013, but TAQA subsequently revealed in August that it was delaying investment.
Turkey is keen to make the most of its coal resources in order to reduce imports of natural gas as the economy expands. It has now moved on from the dead TAQA deal and is in talks with Chinese companies to acquire the project.
"There will be an investment of $10-12 billion in the Afsin-Elbistan field. This will include use of the coalfields. We are in talks with China for a deal on this subject," Yildiz revealed recently, though he could not give details on when any deal with China might be signed.
The Afsin-Elbistan region is estimated to hold up to 45 per cent of Turkey's lignite (brown coal) reserves and the development project for the area includes the construction of a new 8000 MW coal-fired plant.
"This is a big project. We have to set up the Afsin-Elbistan field project correctly. We have a big store of information. We are working with China on this," Yildiz added.
In a separate statement, Yildiz also confirmed Turkey is not currently planning to be a partner in the Trans Adriatic Gas Pipeline Group (TAP) project which is set to transport gas from the Shah Deniz II field in Azerbaijan to Europe via a 870 km pipeline through Greece, Albania and Italy by the end of the decade.
The approximately 870 km-long TAP pipeline will connect with the Trans Anatolian Pipeline (TANAP) near the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before reaching southern Italy.
"TAP is not currently on our agenda. We will assess the subsequent developments," he said.