BAKU, Azerbaijan, Feb.7
By Leman Zeynalova – Trend:
Naturelgaz, a 95.5 percent subsidiary of Global Investment Holdings and Turkey’s & Europe’s leading CNG (Compressed Natural Gas) supplier and distributor in terms of mother station infrastructure and bulk sales volume, has signed an SPA (Share Purchase Agreement) to purchase 100% of SOCAR Turkey LNG, Trend reports citing Global Investment Holdings.
Such transaction is subject to regulatory approvals as well as completion of the pre-conditions. After the share transfer, Naturelgaz and SOCAR Turkey LNG are planned to merge under Naturelgaz.
Such acquisition will further strengthen the position of Naturelgaz in LNG, bulk CNG, and auto-CNG businesses; increasing volume and geographical coverage while diversifying the product portfolio. This acquisition is a perfect fit to Naturelgaz’ strategies to enter into the LNG business, grow in bulk CNG, and establish an auto-CNG station network on critical routes of heavy duty vehicle transportation in Turkey.
Currently, the infrastructure of Naturelgaz roughly consists of 10 bulk CNG plants, 3 auto-CNG stations, 296 CNG road tankers and 47 industrial scale compressors; while post-acquisition the infrastructure will enlarge to 12 bulk CNG plants, 11 auto-CNG stations, 345 CNG road tankers and 67 CNG compressors, expansion coming from new regions. In addition to CNG infrastructure, the acquisition will also bring 44 LNG tanks and equipment along with 6 LNG road tankers.
In 2019, Naturelgaz distributed overall 167.0 mn Sm3 of CNG, while SOCAR Turkey LNG distributed 35.4 mn Sm3 of CNG & LNG.
Hasan Tahsin Turan, CEO of Naturelgaz stated that “We are very excited to have taken a solid step towards our growth strategy. Thanks to this acquisition, we will be reaching out to new regions in bulk CNG in Turkey, entering into the LNG business with a ready-to-use infrastructure and customer portfolio. Moreover, we believe in the future of auto-CNG business and its environmental and economic benefits. With this transaction, we will be increasing our auto-CNG station network considerably, to be able to capitalize on the future potential of this business.”
SOCAR Turkey LNG is operating with 2 industrial CNG and 8 auto-CNG stations as a subsidiary of SOCAR Turkey, since 2013. The company has LNG and CNG sales license from the Energy Market Regulatory Authority (EMRA). SOCAR Turkey LNG, which offers LNG and CNG for industrial usage also CNG as an alternative fuel to vehicle fleets of institutions operating in sectors such as industry, tourism, construction, transportation, currently serves in with 10 stations.
Naturelgaz, a 95.5 percent subsidiary of GIH, is Europe’s and Turkey’s leading CNG (Compressed Natural Gas) distributor in terms of station infrastructure and bulk sales volume. The company focuses on the sales and distribution of bulk CNG to industrial and commercial customers – such as factories, power generators, hotels, asphalt plants – in addition to cities (households) not connected to a natural gas pipeline due to economic or geographic constraints.
Naturelgaz CNG infrastructure consists of 10 bulk CNG plants, 3 auto-CNG stations, 296 CNG road tankers and 47 industrial scale compressors. All facilities and equipment established and used by the company conform to international standards and regulations.
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