MORE GE TURBINES TURNING IN TURKMENISTAN

UNCLAS ASHGABAT 000224 SENSITIVE SIPDIS STATE FOR SCA/CEN; EEB ENERGY FOR EKIMOFF/BURPOE/COHEN COMMERCE FOR EHOUSE/DSTARKS E.O. 12958: N/A TAGS: EPET PGOV EINV TX SUBJECT: MORE GE TURBINES TURNING IN TURKMENISTAN REF: A) ASHGABAT 15; B) 09 ASHGABAT 1591 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: On February 14, the Turkmen Government commissioned a new power station named "Ahal," located about six miles northeast of Ashgabat. The power station operates with two General Electric gas-turbine units with a combined generating capacity of 254.2 MWs. Lotus Energy, a Turkish company, constructed the power station. It is the ninth power station in the country and will supply electricity to Ashgabat and surrounding areas. END SUMMARY ¶3. (SBU) Government-owned Turkmenenergo Corporation, which will operate the power plant, signed a 120 million euro contract for construction of the power station with Lotus Energy in January 2008, and construction started in March ¶2008. Lotus Energy is registered in Turkey and conducts business only in Turkmenistan (Ref A). It is an engineering, procurement and construction company that specializes in energy sector projects. Since 2002, GE has been the exclusive provider of gas turbines for power generation in Turkmenistan, partnering with companies such as Lotus (Ref B). ¶4. (SBU) The commissioning of the Ahal power station has brought Turkmenistan's electricity generation capacity to approximately 3,595 MWs. The new power plant is supposed to significantly improve power supplies to the capital, as well as to surrounding towns and villages. The station is also linked to the country's unified electricity grid. The Ahal power plant can utilize diesel as a reserve fuel in case of a disruption of its gas supply. State-controlled "Neutralniy Turkmenistan" newspaper published an article about the new power station, in which it praised its GE turbines and technology. ¶5. (SBU) Two other power stations, in Awaza and Balkanabat, are currently under construction and should be completed this year. Lotus Energy is constructing the Awaza power station. Chalyk Energy, a competing Turkish company, is close to completing the power station in Balkanabat. Both power stations will utilize GE-produced gas-turbine units and will have the same capacity as the Ahal power plant. ¶6. (SBU) In addition to its installation of state-of-the-art power generation equipment, the Turkmen Government has also announced a massive project to upgrade the Ashgabat power grid. There are also plans to modernize the Soviet-era, steam-driven turbines at all thermal power stations in the country. ¶7. (SBU) COMMENT: The Turkmen Government is increasing the country's power generating capacity much faster than the growth of local consumption and export demand. Due to an ample supply of electricity, the modernization of the thermal power stations might be the last large-scale project in the power generation sector for a while. It will provide another opportunity for GE to sell its equipment and technology to Turkmenistan. END COMMENT CURRAN