Socar Buys EWE's Turkish Gas Business
Azerbaijan’s state-run Socar has acquired German EWE’s gas distribution business in Turkey, it said January 30 without giving any financial details.
The acquisition of EWE Turkey will enhance the value of the natural gas distribution sector and create favourable conditions for Socar to access directly the end customer market in Turkey, it said. The closing of the transaction is expected during the first half of 2019 and is subject to the approval of the Turkish competition board and the Turkish regulator for energy and information technologies.
“The purchase of this natural gas distribution business will complete our investment chain in Turkey, creating additional value for Azerbaijan and Turkey,'' said Rovnag Abdullaev, president of Socar.
Since 2013, Socar has been supplying 1.2bn m3/yr of natural gas in the Turkish market, Abdullaev said, referring to Socar's share of exports from the Shah Deniz field.
“The synergies created by purchasing EWE's assets in Turkey will bring significant benefits to the economies of Azerbaijan and Turkey. Thus, Socar's entry into the natural gas distribution business in Turkey is a commercially expedient strategic step that completes the links of the production-transportation-distribution chain. Therefore, after the integration of EWE assets into our company, we will continue to evaluate other opportunities in the market,'' he said.
EWE Turkey has been operating in the Turkish market since 2007 and has been involved in the energy, natural gas distribution and telecommunications sectors. EWE holds controlling 80% stakes in Kayserigaz and Bursagaz, which hold monopoly gas distribution rights to the Turkish cities of Kayseri and Bursa respectively, as well as gas and power trader EWE Enerji which holds a wholesale gas portfolio of around 2.5bn m3/yr and energy consultancy and solutions provider Enervis.
The remaining 20% stakes in the two distributors are split 50-50 between Turkey's Calik Enerji (10%) and the respective municipalities (10%).