Turkish Gas Storage Facility Continues to Expand Through a New World Bank Loan

Stocks and Financial Services Press Releases Wednesday May 23, 2018 09:14
WASHINGTON--23 May--World Bank

WASHINGTON, May 22, 2018—The World Bank's Board of Executive Directors today approved a US$600 million loan for the Gas Storage Expansion Project in Turkey. The project's aim is to increase the reliability and security of gas supply in Turkey by expanding the underground gas storage facility near Tuz Goelue. In November 2005, the Bank approved a US$325 million loan for a first gas storage project at Tuz Goelue, and in July 2014 it approved an additional financing of US$400 million for that initial project, which will provide storage for about one billion cubic meters of gas. The Gas Storage Expansion project will support government efforts to quintuple the size of the storage facility at the same location.

The Gas Storage Expansion Project will be implemented by Turkey's national gas company, BOTAS, and will consist of three components:

Component 1: Tuz Goelue Gas Storage Expansion Plant. This involves building an underground gas storage facility within a salt formation close to Tuz Goelue, a salt lake in central Turkey. Upon completion, the plant will raise the capacity of working natural gas storage at Tuz Goelue by about four billion cubic meters.

Component 2: Construction Supervision Monitoring.
Component 3: Environmental and Social Impact Assessment (ESIA) and the Resettlement Action Plans (RAP) Monitoring.

On the occasion of the loan approval Johannes Zutt, Country Director for Turkey stated: "The gas storage facility at Tuz Goelue is the first of its kind in Turkey and one of few such projects globally. The facility will play a key role in improving Turkey's energy security and in enabling flexibility in meeting the growing demand for natural gas among households and businesses." Zutt continued: "In particular, the facility will help to ensure that enough natural gas is available to consumers at all times, especially when global supplies are tight or when demand escalates suddenly due to winter cold".

The Project contributes to the Turkey Country Partnership Framework (CPF) for FY18-21 by supporting the aim to improve the reliability of energy supply. The project is expected to help Turkey lower its greenhouse gas emissions by reducing dependence on coal, especially in the winter months. Increased flexibility in the natural gas supply will also support greater integration of renewables as they become a larger part of Turkey's energy mix.

Financing the proposed Gas Storage Expansion Project is an integral component of the World Bank's program of policy, technical and financial assistance in Turkey to support energy reform in general and gas sector reform specifically. With this project, the World Bank is also helping Turkey raise financing from other sources, including commercial finance through due diligence on BOTAS's technical, procurement, and environment and social safeguards work on the project. The Asian Infrastructure Investment Bank (AIIB) is a co-financier of the project.

The lending instrument for the Gas Storage Expansion Project is an IBRD Flexible Loan with 22.5-years maturity, including a seven-year grace period.

Latest Press Release

Siam Commercial Bank Partners with Chaixi Bameekiao and Visa To facilitate QR payment for noodle franchise

- Ms. Pimjai Tongmee, SCB's Payment Product Sales and Delivery Division Executive Vice President - Mr. Panrob Kamla, President of Chaixi Bameekiao Co. Ltd - Mr. Suripong Tantiyanon, Country Manager for Visa Thailand "Siam Commercial Bank" (SCB)...

Isotropic Systems Raises $14 Million in Series A Funding Led by Boeing HorizonX Ventures to Advance Space-Based Connectivity

- Isotropic's approach to next-generation integrated terminal creates profound change in terminal economics and performance to unlock the satellite industry's full potential Isotropic Systems Ltd., the next-generation integrated satellite terminal...

Global economic growth expected to slow in 2019

The global economy as a whole is expected to slow in 2019 as G7 countries return to long-run average growth rates, according to new projections from PwC in its latest Global Economy Watch. PwC expects that the pick up in growth of most major economies...

QNB Group: Financial Results for the Year Ended 31 December 2018

QNB, the largest financial institution in the Middle East and Africa (MEA) region, announced its results for the year ended 31 December 2018. (Photo: https://mma.prnewswire.com/media/808498/QNB_Group_Head_Office.jpg ) Net Profit for the year ended 31...

CIMB THAI announces 2018 financial results with increased in operating income due to loan growth and lower gross NPL ratio. To fully move forward with Fast Forward program.

- Net interest income increased THB 544.3 million YoY mainly from loan expansion and higher interest income on investments. - Profit before tax of THB 271.2 million. - NPL ratio of 4.3% compared to 4.8% YoY due to more efficient risk management policies...

Related Topics