OMV To Divest Turkish CCGT

Austria's OMV said May 30 it had agreed to sell an 890 MW gas-fired power plant (CCGT) in northern Turkey to a local subsidiary of Ankara-based power producer Bilgin Enerji for an undisclosed price.

The asset to be sold is Samsun Elektrik Uretim, which owns and operates the CCGT at Terme in Samsun province; the plant started up in 2013. The sale is subject to approval by Turkish regulators and is expected to conclude in 4Q2018 at the latest. OMV said it will remain in Turkey with its energy sales and trading business.

OMV downstream chief Manfred Leitner said the divestment marked the final step in the company's strategic target of reducing the exposure of its non-integrated power business. Bilgin Enerji CEO Tolga Bilgin said the asset is "one of the most efficient and flexible gas-powered plants in Turkey" and will help balance Bilgin's renewable energy portfolio, taking its total installed capacity to 1,760 MW.

Bilgin's existing operational 874 MW generation capacity generated the equivalent of just over 1% of  Turkey’s electricity consumption; its plants include hydro and wind units.

The CCGT at Terme is close to the landfall of the Gazprom/Eni-operated Blue Stream pipeline that since 2003 has flowed Russian gas directly to northern Turkey.