Why Has Turkiye’s Karadeniz Holding “Karpowership” Removed References To Cuba Where Company Has Been Providing Electricity Since 2019? Political Decision, Financial Decision?
/Why Has Turkiye’s Karadeniz Holding “Karpowership” Removed References To Cuba Where Company Has Been Providing Electricity Since 2019?
Could The Decision Be Political? Not Wanting To Draw Attention To Company Presence In A Country On The United States Government List Of State Sponsors Of Terrorism?
Could The Decision Be Financial? The Government Of The Republic Of Cuba Owes Karadeniz Holding Money So The Company Does Not Want To Promote The Republic Of Cuba As A Customer?
Could Decision Be At The Request Of The Government Of The Republic Of Cuba- Embarrassed By Its Dependence Upon A Turkiye-Based Company For Potentially More Than 25% Of The Island’s Electricity?
Government Of Turkiye Has Promoted Its Presence In The Republic Of Cuba, So The Removal Of The Republic Of Cuba By Karadeniz Holding From Its List Of Customers Is Surprising.
LINK: Turkiye’s Karadeniz Holdings Now Eight “Karpowerships” In Cuba Providing Approximately 25% Of Island’s Electricity. Company Has 22.2% Of Its 36-Vessel Fleet In Cuba. Already Payment Issues. 2 February 2023
“In October 2018, Karpowership signed a contract with Unión Eléctrica de Cuba (UNE), the state electricity company of Cuba, to deploy three Powerships of 110 MW in total for a period of 51 months. Karadeniz Powership Barış Bey and Karadeniz Powership Esra Sultan started operation in Port de Mariel in July 2019 and Karadeniz Powership Ela Sultan started operations in November 2019. In November 2019, the contract capacity was increased to 184 MW. In November 2021, a new Addendum Agreement was signed to increase the capacity to 300 MW and extend the contract term 18 years. Karpowership currently has 6 Powerships with an installed capacity of 420 MW in the country. Cuba is Karpowership’s first project in Western Hemisphere.”
There is speculation that all or a portion of payments from the government of the Republic of Cuba to Istanbul, Turkiye-based Karadeniz Holding [2023 revenue estimated US$560 million] may be guaranteed by the government of the Bolivarian Republic of Venezuela and/or government of the Russian Federation. And, that the government of the Republic of Turkiye may be providing a guarantee to Karadeniz Holding or requesting the company be patient with accounts receivable.
From the Internet site of Istanbul, Turkiye-based Karadeniz Holding on 4 March 2024:
https://www.karadenizholding.com/
https://www.karadenizholding.com/group-companies-powership
“POWERSHIP
Karpowership, one of the subsidiaries of Karadeniz Holding, which owns the world's only floating power plant fleet, is the pioneer of short, medium and long term energy solutions. Its goal is not only to be an electric generator, but also be the solution partner of all its customers in the energy sector. Karpowership is the designer and builder of the world's first floating power plants, Powerships. Powership is a floating power plant on a barge or a ship, capable of operating with LNG, natural gas and heavy fuel oil. Operations in 15 Regions. 36 Completed Powership. 6.000 MW Installed Capacity.
Since 2010, 36 Powerships have been completed reaching 6,000 MW installed capacity. 6,000 MW are in the pipeline to be added to the Karpowership fleet in the next few years. Powerships have been supplying 60% of Gambia, 23% of Ghana, 100% of Guinea Bissau, 10% of Guinea, 25% of Lebanon, 23% of Mozambique, 15% of Senegal, 7,5% of Ivory Coast, 80% of Sierra Leone, 30% of Northern Sulawesi, Indonesia, 55% of East Nusa Tenggra, Indonesia, 80% of Ambon, Indonesia, and 10% of Medan, Indonesia's total electricity generation. By 2018, it has met 15% of Iraq’s and 16% of Zambia’s energy needs.”
Courtesy of Jorge R. Piñon, Senior Research Fellow, The University of Texas at Austin Energy Institute Flawn Academic Center (FAC); https://energy.utexas.edu/
“Best effort audit of the KPS Power ships in Cuba using Google Earth, Vessel Tracking Services and third party independent observations in Cuba. Even though we do not have reports on the terms and conditions of the contractual agreement most likely it is a “take or pay” contract, where the supplier gets paid for the product amount whether the purchaser takes possession of it or not. The estimated total installed capacity (MW) of the power ships (730 MW) do not necessarily represent the contracted amount of electricity (Gwh) to be delivered. KPS has kept an amount of spare generating capacity in the case of maintenance or other downtime to be able to keep their contractual commitments. Also remember that there must be an additional penalty as Cuba has not been able to deliver fuel to the power ships, which was stipulated in the contract. Unknown is if KPS received a payment guaranteed from the Turkish government in case Cuba was not able to pay.
KPS Baris Bey (40 MW) and KPS Ela Sultan (65 MW) both in Mariel. KPS Belgin Sultan (15 MW) Melones, Havana. KPS Suheyla Sultan (240 MW) Melones, Havana. KPS Erol Bey (est. 240 MW) in Regla, Havana. KPS Erin Sultan (130 MW) in Santiago de Cuba."
Havana Times (23 August 2023): “Despite the risk of toxicity, the authorities- who rent five of the same type from the company Karpowership for an estimated annual price of 31 million dollars- have installed the patanas in the ports of their two most populated cities, Santiago de Cuba and Havana, and in the Mariel Special Development Zone.”
LINK TO COMPLETE ANALYSIS WITH IMAGES IN PDF FORMAT
LINKS To Related Analyses
President of Cuba Visiting President Of Turkiye. Number One Agenda Item: Paying Istanbul's Karpowership For Providing Nearing 20% Of Cuba's Electricity. What Will He Trade Away? November 22, 2022
Turkey's Karpowership Delivering Fifth Electric Generation Vessel; More Than 15% Of Cuba's Current Electricity Usage. Company Won't Comment. Contracts Profitable. April 03, 2022
Turkey's Karpowership Adds Fourth Thermal Power Barge In Cuba. Company Generating More Than 10% Of Cuba's Electricity. Good For Turkish Companies. Reinforces Cuba's Energy Production Issues. November 25, 2021
Karpowership From Turkey Extends And Expands Floating Electricity Generation In Cuba; Joining Turkey's Global Ports Holding Which Manages Cruise Ship Terminal In Havana. November 19, 2021
Turkey's Karadeniz Holding May Add To “Karpowership” Fleet In Cuba. December 02, 2020
Karadeniz Holding Of Turkey Update On "Karpowership" Operations In Cuba. March 09, 2020
Karadeniz Of Turkey Delivering Floating Power Plant To Cuba For 51-Month Contract. April 23, 2019
Turkey's Karadeniz Holding Reports Electricity Contract With Cuba In October 2018; But, No Contract Signed Five Months Later. April 01, 2019
