OMV Austria in Samsun for 870 MWe CCPP
Dear Colleagues, Dear Energy Professional,
We have been informed through various wires that Austria-based power company OMV will invest EUR 600 million in a natural gas-powered combined cycle power plant in the city of Samsun, on Black Sea coast of Turkey. OMV acquired the stakes of Met Group and Lehman Brothers in local electricity generation company Borasco Elektrik, which will undertake the power plant investment. CEO of OMV, Wolfgang Ruttenstorfer details that construction works for the power plant with an installed capacity of 870 MW will start this month and the plant will become operational in 2012.
Borasco Elektrik, with headquarter in Istanbul, Turkey, was founded in October, 2007 as a joint venture / project company of OMV, MET-CAP and Lehman Brothers with the purpose of constructing a gas-fired power plant in Samsun Province, Terme County. In 2008 OMV Power International GmbH (OMV Gas & Power GmbH) acquired 60 % of the shares, taking over the rest % 100 shares in 2009.
In April 2008 Borasco was granted a 49 years generation license from the Turkish Energy Market Regulatory Authority to produce and trade energy in Turkey.
The respective Power Plant in Samsun is planned with a capacity of 870 MW electricity, investment will be around EUR 600 million and the life-time of the thermal power plant is expected for 30 years. Borasco aims to fulfill demand in the highly growing but still undersupplied Turkish energy market.
Due to its strategic location next to the Blue Stream Pipeline the power plant will be able to enhance the security of supply for electrical power for the Turkish energy market.
Borasco, a subsidiary of Austrian power giant OMV, and Greek energy firm Metka announced plans to build a power plant in Samsun, on Turkey's Black Sea coast. The agreement includes construction work as well as supplying most of the equipment for the 870-megawatt power plant.
Metka quotes some 199.9 million euros and an option of US$172.3 million in the project, while its subsidiary in Turkey, Power Projects, quotes 142.4 million Euros with an option for US$10.8 million. Metka and Power Projects, the project contractors, aim to have the power plant up and running by the summer of 2012.
The contract covers the supply of the majority of equipment and construction work for an 870-megawatt natural-gas-fueled power plant, consisting of two single shaft GE-Frame-FB units with vertical gas pass HRSG and STs provided by General Electric.
The news follows Metka's announcement in October 2009 of another power plant in Turkey. Along with German power giant RWE and Turcas, the Greek firm agreed to construct a similar thermal power plant near Denizli, in southwest Turkey. The budget for the project stands at 450 million Euros and an option of 40 million Euros.
We only get pleased to read investment, and sincerely feel that energy investors deserve all our support to complete those power plant investments. On the other hand, there is great risk in project finance of such investments due to public response. Those companies, who are ignorant of local workforce employment expectations, and neglecting local engineering contribution, neglecting world class environmental limitations, will surely deserve the highest level of local resistance in legal platforms. They may have too much of a headache during project execution; therefore, the project finance institutions should make their risk assessments carefully. We all expect that these energy investments will bring prosperity, employment and peace to the site, as well as to the nearby community. Maximized local manpower, as well as maximized local engineering/ fabrication/ site installation capabilities should be employed.
May God bless them with wisdom for all those who need. May God save you and forgive you for making any mistakes in your risk assessment. God bless you all.
Haluk Direskeneli, Ankara based Energy Analyst