Azeri state-owned oil firm SOCAR said it has acquired Turkish operations of Germany’s EWE and will supply natural gas to the cities of Kayseri and Bursa.
EWE’s operations in Turkey include Bursagaz and Kayserigaz, the gas distribution networks and the EWE Enerji and Enervis businesses, which are involved in energy trade and service. It also owns a telecom company there called Millenicom.
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, said SOCAR, which cites itself as Turkey's largest foreign investor.
“The purchase of this natural gas distribution business will complete our investment chain in Turkey, creating additional value for Azerbaijan and Turkey,'' said Rovnag Abdullayev, president of SOCAR.
SOCAR has been supplying natural gas to the Turkish market for the last 12 years and began expanding its operations this year through the Trans Anatolian Natural Gas Pipeline (TANAP), a major joint project between Turkey and Azerbaijan.
Abdullayev said: “Since 2013, SOCAR, the global brand of Azerbaijan, has been supplying 1.2 billion cubic meters of natural gas a year wholesale in the Turkish market. TANAP pipeline, which was commissioned last year, created more favourable conditions for the export of natural gas from Azerbaijan. The synergies created by purchasing EWE's assets in Turkey will bring significant benefits to the economies of Azerbaijan and Turkey.
SOCAR's entry into the natural gas distribution business in Turkey 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. ''
The acquisition of EWE Turkey Holding will be finalised after the necessary permissions are acquired, SOCAR also said.