SOCAR negotiating to acquire large gas-fired power plant in Türkiye

The State Oil Company of Azerbaijan (SOCAR) is conducting negotiations regarding the acquisition of a natural gas-fired power plant in Türkiye, Report informs via Bloomberg HT TV.

It was noted that SOCAR has presented an offer of $225 million to $250 million for the acquisition of the 870-megawatt Central Anatolia Gas Thermal Power Plant owned by Türkiye's Gama Enerji A.Ş. The parties have agreed to continue negotiations based on this offer.

Azerbaijan is Türkiye's second-largest gas supplier after Russia and also exports gas to Europe through Türkiye. The acquisition of the mentioned power plant will create alternative opportunities for SOCAR to strengthen its position in Türkiye's growing electricity market and convert its existing gas supply surplus into revenue.

For Gama Enerji, which also owns hydroelectric and wind power plants, this sale could provide an opportunity to exit this sector against the backdrop of decreasing profitability of gas-powered production facilities due to regulated tariffs.

According to sources, SOCAR has not yet submitted a legally binding offer, and a possible agreement could come into force after approval by the boards of both companies.