TURKEY: Oil majors plan LNG terminals

06 September 1996

Large projects for liquefied natural gas (LNG) terminals with associated power plants are being proposed to the Energy & Natural Resources Ministry. The projects aim to take advantage of soaring demand for natural gas, and also assist in meeting looming electricity shortfalls.

A venture of the Royal Dutch/Shell Group with Japan's Mitsubishi Corporation and the US' The MW Kellogg Company has proposed a project estimated to cost $2,400 million which has been submitted to the ministry for consideration. A Shell statement on 24 August said representatives from Shell International Gas in London, Shell companies in Turkey and the other venture partners, met Energy Minister Recai Kutan recently.

Ankara-based Mobil Power, a subsidiary of the US major, also plans to build two LNG terminals with associated power production on a similar scale to the Shell proposal, according to a company spokesman, who declined to give further details.

The Shell venture has asked the ministry for permission to carry out feasibility studies for an LNG terminal and a power plant on a coastal site, according to the Shell statement.

With a first stage of 650-700 MW, the associated power plant will have an eventual capacity of 2,000 MW.

Construction could start as soon as the government approves the plan, according to industry sources. They add that the government wants completion within two years of the first of the three-stage implementation of the combined-cycle power station, in order to meet the electricity shortfalls.

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