TWF to build petrochemical and refinery facility in USD 10 billion investmentDecember 3rd 2019
The Turkey Wealth Fund will build a refinery and petrochemical plant in the Ceyhan district of Adana in an investment of about USD 10 billion in order to reduce the foreign trade deficit in petrochemicals and refining.
The 2020-2022 New Economy Program prepared by the Ministry of Treasury and Finance envisaged that the TWF would play a role in fixed capital investments in the fields of petrochemistry, mining, and electricity generation from domestic resources, based on private or foreign capital collaboration. In this context, the TWF, which places strategic investments on its agenda in order to reduce the foreign trade deficit, will undertake its first investment in the field of refining and petrochemicals.
The construction of the refinery and petrochemical complex, which the Turkey Wealth Fund will establish in the Ceyhan district of Adana in an investment of about USD 10 billion, will begin in 2021 after the completion of the design and engineering work.
The project, which is expected to create approximately 10,000 jobs during the construction period and employ 5,000 people during its period of activity, is expected to be one of the investments held up as an example in the world in terms of advanced technology and innovative production methods.
The refinery and petrochemical complex in question will support Ceyhan's goal of becoming an international energy hub. The project will enable the production of the raw materials needed to develop a petrochemical base and chemicals cluster in the region as well as the implementation of the necessary infrastructure investments.
Turkey's imports of refined products amounted to 21 million tonnes last year. More than 80 per cent of Turkey’s requirement for petrochemical products is imported, with the sector recording a foreign trade deficit of USD13 billion in 2018. The Turkey Wealth Fund aims to contribute to the permanent reduction of foreign trade deficit in this area through investments in refineries and petrochemicals. The investment is expected to contribute USD 1.5 billion a year to the foreign trade balance.