Unocal Forms Gas Partnership in Turkey

Unocal Corp. has signed a letter of intent with an Istanbul company to create Turkey’s first private natural gas distributor and marketer. The El Segundo-based oil company said the new company will buy, sell and transport natural gas to customers in Turkey. It will also evaluate whether to build a pipeline to accommodate the privatization of Turkey’s energy industry. Unocal’s partner is Koc Holdings A.S., which owns interests in a wide range of industries including energy, automotive and finance. Turkey, which produces 2.8% of its natural gas consumption, expects natural gas demand to triple by 2010. The country plans to expand its import and domestic pipeline network to accommodate the increase. The Unocal-Koc partnership is aimed at reducing existing and future energy shortages while providing a choice for natural gas customers in Turkey, who now must buy from a state firm, Unocal said. Unocal declined to say how much it will invest in the pact. Unocal’s shares rose $0.25 to $41.