South Korean Firms Sign $4.8 Billion in Business Deals with Turkey
kpride, April 13, 2015, 11:21 a.m.
A South Korean consortium signed deals with Turkmenistan worth US$4.8 billion as their leaders held their second summit in more than a year. The consortium led by Hyundai Engineering Co. and LG International Co. inked a $940 million deal with Turkmenistan to modernize the Central Asian country's oil refinery infrastructure.
The deal is designed to construct facilities that remove sulfur from gasoline and diesel produced by plants located 500 kilometers northwest of its capital Ashgabat. The consortium also signed a heads of agreement with Turkmenistan for another facility. The $3.89 billion plant will produce naphtha by processing natural gas near the capital city.
South Korean President Park Geun-hye and her Turkmen counterpart Gurbanguly Berdimuhamedow observed the signing of the two deals after their summit talks at the presidential office in Seoul. It is Berdimuhamedov's second visit to South Korea following his first in November 2008. It is also the second summit meeting between Park and Berdimuhamedov following their first during Park's state visit to Turkmenistan in June 2014.
South Korea has been pushing to secure lucrative projects in Turkmenistan, which holds the world's fourth-largest natural gas reserves. Trade volume between the two countries stood at US$193 million last year, up from $141 million in 2013.