A 50-50 joint venture between Turkey’s MetCap Energy Investments and Qatar’s Fusion Dynamics has been formed to develop a $5.2bn petrochemical facility and associated natural gas power stations in Turkey.
The newly inked investment deal will see the construction of a 1 mmty (million metric tonne per year) polyethylene and polypropylene plant at Enez on Turkey’s European Aegean coast. It will use natural gas supplied both from the Turkey-Greece gas pipeline 60 km to the north as well as LNG, propylene and ethylene imported through a new import terminal to be constructed as part of the project.
The planned $4bn petrochemical plant will be commissioned in phases starting from 2020 and all investments will be completed in 2023.
It will have an annual production capacity 2.6 bcm per year of methanol, which in turn will be converted to 1 mmty of light olefins, to be converted into 400,000 mt of polyethylene and 590,000 mt of polypropylene.
The project is set to reduce Turkey’s total imports by $1.4bn. The facility will be constructed on land belonging to the Turkish treasury and has already been granted investment incentives by the ministry for economy.