Limak Dogalgaz

Transaction Description

InfraMed owns 25% of the combined cycle natural gas turbine power producer Hamitabat, operated and 75% controlled by InfraMed’s partner Limak Yatırım. The plant stands 180 km north-west of Istanbul in Lüleburgaz, Kırklareli. Originally built in 1985 as the first natural gas power plant in Turkey, Hamitabat was purchased by Limak in 2013 with the intention of conducting a state-of-the-art modernisation. Upon completion of the $683m programme in 2017, the plant will utilise two Siemens H-class turbines increasing capacity to 1,200MW while improving efficiency to 60%, making it the most efficient gas-fired power producer in Turkey.

Investment Rationale

The Turkish power sector has evolved into Europe’s fastest growing energy market with an average electricity consumption growth of 7.7% per annum between 1990 and 2013. With low reserve capacity margins caused by limited domestic fossil resources and insufficient hydro production, the Turkish electricity market is projected to face a production shortfall of more than 150TWh by 2018. Hamitabat will help meeting Turkey’s energy demand through its highly efficient and flexible operating capacity, providing energy security to its rapidly growing market.