SOCAR in talks to buy gas-fired power plant in Turkey

Azerbaijan’s state oil company SOCAR is in talks to acquire a gas-fired power plant in Turkey, Turkish media reported on Monday.

According to Ekonomim, SOCAR has submitted a non-binding offer of $225–250 million to Turkish firm Gama Enerji A.Ş. for an 870-megawatt combined-cycle power plant located in Central Anatolia.

Azerbaijan is Turkey’s second-largest gas supplier after Russia, and the potential acquisition would allow SOCAR to strengthen its position in Turkey’s expanding electricity market.

Gama Enerji also owns wind and hydroelectric power assets in Turkey, which generate higher returns, as state-regulated gas prices have eroded profits for gas-fired plant operators.

N.Tebrizli