Linklaters has advised Ceyhan Polipropilen Üretim A.Ş., a joint venture between Rönesans Holding and SONATRACH, on the structuring, development and financing of an integrated propane dehydrogenation and polypropylene (PDHPP) facility in Türkiye, which is set to be the world’s most sustainable PDHPP plant to date through its use of renewable power and market leading technologies.
Located in Adana, the plant will enable Türkiye to domestically manufacture polypropylene and will create several hundred permanent new jobs in the Southern Turkish region. The project will bring significant investment and regeneration to a region which was heavily impacted by earthquakes in 2023, and by replacing polypropylene imports with new domestic production.
Financing for the PDHPP facility was obtained from the U.S. International Development Finance Corporation (DFC) and a consortium of international commercial banks such as ING (general coordinator & documentation bank), BBVA, DenizBank AG – Austria, DZ BANK and The Arab Energy Fund – TAEF (formerly Apicorp) covered by Compañía Española de Seguros de Crédito a la Exportación (CESCE), the Spanish export credit agency.
The project represents the latest in a string of transactions in low-carbon and sustainable downstream sector developments that the Linklaters team have advised on, including the €3.5bn financing of INEOS’s Project One in Belgium, the $11bn Amiral petrochemical complex in Saudi Arabia and the $7bn BAPCO refinery upgrading project in Bahrain. Ranked Band 1 by Chambers 2024 for Global Projects & Energy, Linklaters is at the forefront of the market, regularly advising on the development and innovative financing of complex, large-scale projects, highly structured transactions and mergers and acquisitions in the energy and infrastructure sectors across the globe.
Linklaters’ team was led by Global Head of Energy & Infrastructure, Daniel Tyrer and Energy & Infrastructure Partner Andrew Penfold, alongside counsel Jack Allen-Fitt, managing associate Isabella Peplinski and associate Justine Hung, and supported by a team including managing associate Charlie Bown, associates Scott Geelan, Luke Wilson and Megan Tomlinson.
