Metcap Energy Investments of Turkey and Fusion Dynamics of Qatar announced a $5.2 billion investment in a 50-50 joint venture in Turkey's energy sector on Monday.
A $4 billion fully-integrated petrochemicals complex will be built in the Thrace Basin of Turkey. It will have an annual production capacity of 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.
The signing ceremony for the investments was held in the Turkish capital Ankara on Monday.
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 will 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.
"We are honored to be a part of the Turkish economy by investing in the energy and petrochemical sectors with these showcase investments together with Metcap," Mohammed Al-Hajri, chairman of Fusion Dynamics said.
"We are very pleased to be a partner with Fusion Dynamics to realize these showcase investments to make us proud for the years to come. This is my 50-year dream as a chemical engineer," said Dr. Celal Metin, chairman of Metcap Energy Investments and Metcap Petrochemicals.
The chemical plant and power plants will be operational in phases starting from 2020 through 2023.
By Murat Temizer