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    AIIB To Lend to Turkish Gas Project

Summary

Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) has approved a $600mn loan to Turkey to enhance capacity of the Tuz Golu underground gas storage facility.

by: Shardul Sharma

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AIIB To Lend to Turkish Gas Project

Beijing-based Asian Infrastructure Investment Bank (AIIB) has approved a $600mn loan to Turkey to enhance capacity of the Tuz Golu underground gas storage facility, it said June 27.

The loan will be used to boost capacity at the Tuz Golu underground gas storage facility from 1.2bn m3 to 5.4bn m3. The project, co-financed with the World Bank, is AIIB’s first project financing in Turkey. 

"Development of gas storage capacity is an integral component of Turkey’s energy strategy," said AIIB vice president and chief investment officer D.J. Pandian. "Our investment in this project will bring great benefits to gas consumers across Turkey and will help AIIB establish long-term cooperation with the government and other important entities in the country." 

In May, the World Bank had approved a similar $600mn loan for expansion of the Tuz Golu underground gas storage facility.

"This project improves gas supply reliability which is vital to Turkey’s economy, as the country depends heavily on gas imports," said AIIB director general of investment operations Yee Ean Pang. ”The project promotes energy security and reduces the carbon intensity of energy supply which are key components of AIIB’s energy strategy." The Lake Tuz facility, in south central Anatolia, was inaugurated in February 2017.