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Turkish wealth fund to invest USD10 B in petrochemical refinery

December 09/2019

MOSCOW (MRC) -- The Turkish wealth fund will invest around USD10 billion for the construction of a petrochemical refinery in southern Turkey, the state-run Anadolu news agency said, in a move it said was aimed at alleviating the countrys trade deficit, as per Hydrocarbonprocessing.

Data on Monday showed Turkeys trade deficit had more than tripled from a year ago to stand at USD2.15 billion in November, according to a special trade system. Both exports and imports rose year-on-year, the data showed.

The Turkish Wealth Fund (TVF), worth $50 billion, was set up in 2016 by the government to develop and increase the value of Turkeys strategic assets and provide resources for investment. Last year, President Tayyip Erdogan appointed himself chairman of the fund and completely changed its board.

Anadolu, citing information obtained from the TVF, said the fund would to invest around USD10 billion for the construction of a refinery and petrochemical complex in the southern province of Adana. It said that construction will begin in 2021.

The project will create 10,000 jobs during the construction period and another 5,000 jobs when the complex is operational, Anadolu said. It added that the project would contribute around USD1.5 billion annually to Turkeys trade deficit.

The TVF later confirmed to Reuters that it was planning a greenfield investment in the area, but did not provide further details.

The government has previously transferred to the TVF stakes worth billions of dollars of state assets, including stakes in flag carrier Turkish Airlines, major banks and fixed-line operator Turk Telekom.

In October, the funds general manager was quoted as saying the TVF wants to buy the 10% stake of the European Bank for Reconstruction and Developments (EBRD) in the Istanbul bourse. EBRD is set to sell its stake after the appointment of a former Halkbank executive who was jailed in the United States as CEO of the stock exchange. (Reporting by Tuvan Gumrukcu and Can Sezer Editing by Ece Toksabay).

As it was written earlier, Turkey and Ukraine are emerging as possible transit routes for Russian gas to eastern Europe from 1 January 2020. But with less than a month until new transit arrangements are expected to come in place, it is still uncertain whether the gas will flow north to south, or whether it will be shipped from Turkey to northern off-takers.
Author:Anna Larionova
Tags:natural gas, petroleum products, crude oil, gas processing.
Category:General News
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