Turkish-South Korean joint venture to build largest private gas-fired power plants in Iran

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Turkish-South Korean joint venture to build largest private gas-fired power plants in Iran

SK Engineering & Construction has partnered with Unit International S.A. for a multi trillion-won project to build and operate five new gas-fired power plants in Iran.

SK E&C signed a deal with the Turkish firm in Istanbul in which the South Korean firm agreed to join Unit International’s ongoing project to build and operate the new power plants in Iran. Following the agreement, SK E&C acquired a 30% stake in Unit International S.A.

The new deal is said to cost roughly KRW 4.2 trillion ($3.7 billion). The project will involve Iran’s large privately developed power plants as it is anticipated to have a combined generation capacity of 5,000 megawatts. SK E&C will most likely be in charge of the building process of the new plants.

The joint operation is currently slated to build and operate gas-fired power plants across five locations in Iran including Saveh, Zahedan, Sufian, Qasr-e Shirin and Ahvaz.

SK E&C said it plans to begin construction of 1,200-MW and 880-MW power plants in Saveh and Zahedan next January. The plants are expected to start operation in the latter half of 2020.

The total investment volume for these power plants was announced 3.4 billion euros. The recently announced strategic partnership between the two groups will be around 1 billion euros, read the statement. 

In a ceremony to ink the deal for the construction of power plants along with Iranian officials in 2016, Aysal said the power plants would meet around 10 percent of Iran’s energy needs when completed.

UNIT International S.A. owns and develops power generation assets in Turkey, Eastern Europe, and the Middle East. It engages in engineering, procurement, and construction projects for hydroelectric, natural gas, wind, and biomass-fired/gas-fired power plants; offers business and project development services for power plant investments; provides electricity generation services; trades electricity, gas, and commodity products; offers property investment services; operates a biotechnology company for the production of fruit puree concentrates and tomato pastes; and operates hotels and a park.

The company was founded in 1974 and is based in Brussels, Belgium with hotels in Istanbul and Antalya, Turkey.

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