• 4 minutes Get First Access To The Oilprice App!
  • 7 minutes Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 3 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 2 hours Is Natural Gas Renewable? I say yes it is.
  • 10 hours Oceans "Under Fire" Of Plastic Trash
  • 4 hours Making Fun of EV Owners: ICE-ing Trend?
  • 3 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 2 hours Renewables in US Set for Fast Growth
  • 13 hours Algorithms Taking Over Oil Fields
  • 15 hours Europe Slipping into Recession?
  • 2 hours Socialists want to exorcise the O&G demon by 2030
  • 2 hours Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 20 hours Nuclear Power Can Be Green – But At A Price
  • 10 hours Orphan Wells
  • 17 hours UK, Stay in EU, Says Tusk
Are Energy Hedge Funds Going Extinct?

Are Energy Hedge Funds Going Extinct?

2017 was a difficult year…

Oil Rises After Choppy Start To The Week

Oil Rises After Choppy Start To The Week

Oil prices rose by roughly…

Abu Dhabi withdraw from $12 Billion Turkish Energy Project

Turkey’s currency recently fell to record lows after an emerging market sell-off, and the country’s economy looks unlikely to grow, not the best environment to begin a multibillion dollar project, and likely the reason why Abu Dhabi National Energy Co. (TAQA) has postponed an investment decision, with the possibility of cancelling the project in the future.

In January TAQA agreed to work with the Turkish state-owned Electricity Generation Co. to develop a $12 billion energy project that would see the development of several power plants which would burn lignite coal, mined from the Afsin-Elbistan region in Turkey.

The Afsin-Elbistan region holds an estimated 4.4 billion tonnes of lignite coal, about 40% of the country’s entire reserves, and enough to supply 8,000MW capacity of power plants.

Related article: The Hidden Opportunity in Asian Coal

The Afsin-Elbistan mine
The Afsin-Elbistan mine (EnerjiEnstitusu)

Investment in emerging markets such as Turkey has been hit hard, as companies fear a reduction in available cheap cash on the market as the US Federal Reserve plans to reduce its monthly bond-buying program. An industry source told Reuters that “what we have been picking up from them recently is that they are looking at an eventual pull out. This was such a large-scale project, whose future was very much dependent on market conditions.”

Another source explained that “it was never realistic to see this project as something that one company alone could carry out ...Now with the changing climate towards emerging markets and Turkey, investors question the return.”

Related article: Coal Gasification: Turning the Commercial Corner

As a result of the poor economic conditions in Turkey, TAQA announced that it would defer its decision on the Afsin-Elbistan investment until next year.

Another possibility is that TAQA has decided to withdraw from the project for political reasons. Tayyip Erdogan, the Turkish Prime Minister, managed to annoy several Gulf Arab States after criticising the ousting of Egypt’s President Mohammed Morsi. Being 75% owned by the Abu Dhabi government, TAQA may be sending a political message of disapproval to Erdogan, although a company spokesman refused to state if the decisions had any political motives.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News