The joint venture between Turkey's Metcap Energy Investments and Qatar's Fusion Dynamics will see the merging of energy and chemistry in a deal that aims to supply 35 percent of Turkey's petrochemical needs.
Metcap Energy Investments aims to produce 2.6 million tons of methanol and 1 million tons of light olefins for conversion to 400,000 tons of polyethylene and 600,000 tons of polypropylene per year, the company Chairman Celal Metin said late Monday.
Metin spoke to Anadolu Agency after the signing ceremony of the $5.2 billion energy investment agreement for a 50-50 joint venture in Turkey's energy sector on April 9 in Ankara.
He explained that as energy and chemistry are two sister areas, it makes sense to combine these two in the $4 billion fully-integrated petrochemicals complex that will be built in the Thrace Basin of Turkey.
Despite the high volumes of imports, Turkey's plastic sector is very successful and is set to further expand, he said.
"I believe that this success will increase and there will be other investments. These investments won't just decrease imports but will also create real economic growth," Metin explained.
Metin, a chemical engineer who has worked in the energy sector for 49 years, hailed the project as one of the most important in his career.
"I'm very excited about this project that is the pivotal point of my career. This is one big step but there will be more," he asserted.
Both companies in the joint venture have combined their efforts to have one vision of becoming a prominent energy player which takes into account sustainability and environmental preservation, with emphasis on efficient water usage, Metin said.
Turkey has an annual consumption of 2.2 million tons of polypropylene out of which the majority 2.1 million tons are imported.
The country also has an annual consumption of 2.14 million tons of polyethylene from which 1.8 million tons are imported.
In addition to the $4 billion petrochemicals investment, two gas-fired power plants worth $1.2 billion will be built in Turkish cities - Karaman and Kirklareli.
The total net output from the plants is set to be 1,550 megawatts based on 63 percent net efficiency.
The power plants will energize the petrochemical complex generating 5 percent of Turkey's total electricity generation, or the equivalent energy use of around 4 million households.
By Murat Temizer