Turkey's STFA Seeks Growth in Energy Sector, Looks for IGDAS Privatization

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Researched by Industrial Info Resources (Sugar Land, Texas)--Turkish conglomerate STFA Group (Istanbul, Turkey) plans to expand its presence in the energy sector with merger and acquisitions, as well as privatizations. STFA is involved in construction and natural gas distribution.

According to an interview in economics weekly Para, STFA Chief Executive Officer Mehmet Ali Neyzi said the company is interested in energy sector expansion and the privatization of Istanbul natural gas distributor IGDAS (Istanbul).

Neyzi said the group made a bid to buy Ankara gas distributor Baskent Gaz, although it was not successful. The company will now seek to buy IGDAS, which it believes will be privatized under more favorable terms than previously announced.

Neyzi said the company will be looking at further opportunities. The company's energy projects range from distribution of natural gas to building wind and solar power stations.

"Currently, we're selling/distributing natural gas in 11 cities," Neyzi said. "Istanbul's IGDAS is a big project. If you acquire this company, you may become the biggest dominant factor in natural gas industry. After liberalization of [the] natural gas market, every company can import natural gas freely. We're looking for a place to build a LNG [liquefied natural gas] terminal.

"We can build, operate and import natural gas from the foreign companies. The natural gas market is monopolized right now; this must be changed. We're working on a 120-MW [megawatt], wind-powered energy power plant. We're not going to [go] fast in wind energy. We're more focused on solar energy."

"Also, we're trying to get a new contract to build a photovoltaic power plant in Konya," Neyzi said.

Recently, Turkey's Energy Minister Taner Yildiz said that a 3,000-MW photovoltaic power plant will be built in the region, including six sections, each with a 500-MW producing capacity.

"The investment cost for the project can be high as [$4 billion to $5 billion], we're talking with foreign investors to set up a fund for the project," Yildiz said.

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