Turkey, Korean firms to build natural gas plant

Turkish and South Korean companies signed a deal yesterday for construction of a natural gas cycle power plant with 141 megawatt (mW) installed capacity worth $175 million that is planned to generate power in the Aegean province of Aydin. Turkey's Doganlar Investment Holding's D-Energy Group and South Korea's KOSEP and SK E&C concluded a deal for the construction of the plant in the Buyukefe district of Aydin. The plant will come into operation in 2016. "We are at the beginning of the long-term investments in Turkey as this deal is a good example," Turkish Minister of Transportation, Maritime and Communication Binali Yildirim during the signing ceremony. Doganlar's Chairman Davut Dogan said they invested $175 million, which made the first phase of the "three-company group's energy investments worth an estimated $1.5 billion. D-Energy will start new wind power plant projects that will have 245 mW in the western provinces of Canakkale and Denizli with a partner from the United States, the company said in a statement. However, Yildirim recalled that the Free Trade Agreement (FTA) between Turkey and South Korea, which entered into force on May 1, was a new page for two countries. The parties will gradually taper the customs to zero in 90 percent of all the tariff lines over 10 years. Korea will zero 80 percent of its customs, while Turkey will zero 65 percent of its own in terms of the total tariff lines, according to the FTA.