Two natural gas storage facilities to be built for Turkey's energy security

The government will support investments in two natural gas storage facilities with a total capacity of 4 billion cubic meters with a comprehensive stimulus package. The investment aims to make a major contribution to natural gas supply security and trade in Turkey as a part of endeavors to increase the natural gas storage capacity. The government is set to offer a stimulus package for two new natural gas storage facilities to be constructed in Mersin by Bendis Energy via Toren Natural Gas Storage and Mining Inc. and Gas Storage and Mining Inc. Bendis Energy will invest nearly $10.5 billion in the storage facilities that will have a total capacity of 4 billion cubic meters.

Toren Natural Gas Storage and Mining Inc. will invest nearly $7 billion in a 3-billion-cubic-meter storage facility. The company will import machines and equipment worth more than $695 million for the facility that will employ 48 people.

Gas Storage and Mining Inc. will make a fixed investment of nearly $3.5 billion in a storage facility where 1 billion cubic meters of natural gas will be stored. The company will import machines and equipment worth more than $360 million for the facility that will employ 24 people.

The natural gas storage facilities will be supported with investment incentives such as value-added tax returns, value-added tax exemptions, customs duty exemptions, a 90 percent tax deduction, investment support of 50 percent, seven years of support for an insurance premium employer deal, the allocation of investment placement and interest support.

The natural gas supply from Russia to Turkey was brought to the agenda right after a Russian Sukhoi-24 fighter jet violating Turkey's airspace in the southern province of Hatay was downed by Turkish F-16 fighters last month. The Russian government decided to implement some economic sanctions against Turkey including banning some Turkish goods from entering the country. Yet due to binding agreements, the Russian natural gas flow to Turkey continues uninterrupted; however, Turkey held talks with several natural gas suppliers since the incident to ensure energy security.