World Bank, AIIB Allocate $1.2B Loan to Turkey for Natural Gas Storage Facility
Turkey's ever-growing energy industry continues to draw investments from international institutions. The World Bank and Asian Infrastructure Investment Bank (AIIB) have provided a $1.2 billion loan for the capacity expansion project of Lake Tuz underground natural gas storage facility, the Energy and Natural Resources Minister Berat Albayrak announced yesterday at a ceremony in Ankara. The storage facility is expected to reach 5.4 billion cubic meters of storage capacity at the end of the capacity-increasing project.
The second phase of the project will be operational in 2019 or 2020 and the third phase is planned to start service before 2023, raising the gas storage capacity of the facility to 5.4 billion cubic meters (bcm).
Minister Albayrak stressed that the capacity expansion work in other gas storage facilities in Turkey continues. He explained that the construction of the gas storage capacity of the Northern Marmara Gas Storage Facility in Silivri continues after a deal was inked last year in April.
The Silivri Natural Gas Storage Facility, which can supply 25 million bcm of gas per day to the system with its current natural gas storage capacity, will be increased to 75 million bcm per day by 2020.
The annual storage capacity of the Silivri Natural Gas Storage Facility will be increased from 2.3 bcm to 5 bcm in 2020.
With additional capacity expansions in two facilities, Turkey's gas storage capacity will exceed 11 billion cubic meters before 2023, making it the country with the highest storage capacity in the region.
"Turkey is taking profoundly crucial steps to become a regional gas trading hub with multinational natural gas pipeline projects such as TurkStream and Trans-Anatolian Natural Gas Pipeline (TANAP), floating storage and regasification units in Aliağa and Hatay and more storage facilities," Albayrak said.
The minister particularly highlighted that both the World Bank and AIIB decided to provide loans for Turkey before the election results were announced. The World Bank, he recalled, approved the loan in May and the AIIB endorsed it on June 24, the day Turkey's presidential and parliamentary elections were held.
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