Consortium including Tekfen signs 2.4 bln-euro deals for gas storage facility in southern Turkey

Consortium including Tekfen signs 2.4 bln-euro deals for gas storage facility in southern Turkey

ISTANBUL
Consortium including Tekfen signs 2.4 bln-euro deals for gas storage facility in southern Turkey

A consortium that includes Turkey’s Tekfen has signed two contracts worth 2.4 billion euros to construct an underground natural gas storage facility in the southern province of Mersin, the company said in a written statement Sept. 30. 

The group said three of its subsidiaries, Tekfen Construction, Tesisat A.Ş. and HMB, created a consortium along with France’s Entrepose Contraction. 

The consortium signed two contracts to conduct the engineering, procurement and construction (EPC) works of an underground natural gas storage facility with a capacity of 4 billion cubic meters (bcm) in two separate, yet proximate fields in the Tarsus district of Mersin, according to the statement, which was sent to the Public Disclosure Platform (KAP). 

Tekfen’s share from the 2.4 billion-euro contracts – including those derived through subsidiaries – amounts to 723 million euros, the statement said. 

Construction, which is expected to take five years, will commence as soon as project financing is secured by the main contractors.

Tekfen’s stocks rose 4 percent after the announcement.  

Turkey’s energy regulator awarded gas storage licenses to two companies, Gaz Depo and Toren Gas Storage and Mining, to develop underground gas storage projects in Tarsus in 2014. The companies will be the main contractors in the project, according to the company announcement.