Japan’s Sumitomo constructing power plant in Turkmenistan
By Nigar Abbasova
Japan’s Sumitomo Corporation, a leading integrated trading company, is constructing a gas turbine power plant in the Turkmen Lebap province, the northeast of the country, bordering Afghanistan.
The gas turbine power plant, which is planned to be commissioned in 2018, will cover an area of more than four hectares.
Spokesman for Sumitomo Corporation Shiro Nishioka, told Neutral Turkmenistan newspaper that the contract became the first contract of the company on the construction of a large-scale power plant in Turkmenistan.
Sumitomo Corporation took a role of a prime contractor, being responsible for all aspects, including procurement of the main equipment, while Turkish Rönesans Construction Company and Japanese Mitsubishi Corporation, which will supply three gas turbine power units, became subcontractors of the project.
Sumitomo Corporation signed an EPC contract (Engineering Procurement Construction) worth approximately $300 million with Turkmen State Power Corporation “Turkmenenergo” in October 2015.
Being the sixth in the world for the volume of natural gas reserves, Turkmensitan has been promoting downstream energy projects to facilitate the diverse use of its tremendous gas resources expanding cooperation with neighboring countries through the development of infrastructures, including railways, pipelines and electricity.
The country signed a power purchase agreement (PPA) with the Afghan government to export low-cost gas-powered electricity to the country starting from 2018. The power plant will be the main source of the electric power to be exported to Afghanistan under the PPA, while the main objective is to support the reconstruction of Afghanistan.
Turkmenistan produces about 70-80 billion cubic meters of gas a year, while most of its proven gas reserves are located in the Amu Darya basin in the south-east and in the Murgab South Caspian basins in the western part of the country.
Oil and gas sphere is considered to be one of the key and strategic spheres of the country. The Central Asian country has also been lately engaged in gas talks with China and India. Moreover, the former Soviet republic is also considering Europe as one of the most promising markets for the supply of energy resources and continuously studies opportunities for entering it.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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