Baku, Azerbaijan, March 20
By Rufiz Hafizoglu - Trend:
Turkish Petroleum Corporation (TPAO) will build an oil refinery in the southwestern province of Hatay, which borders with Syria, Haber7 TV channel reported referring to the member of the executive board of directors Besim Sisman.
"A new refinery is expected to be built until 2023," he said. "The cost of the project has not been announced."
According to TPAO, Turkey has four refineries, namely, one of them (Orta Anadolu) is located in the central province of Kırıkkale, the second one (Atas) - in the province of Mersin, the third one (İpras) - in the province of Izmit, the fourth one (Batman) - in the province of Batman.
SOCAR's fifth refinery will be commissioned in the province of Izmir in late 2017. It was earlier reported that the plant would be put into operation in Q1 of 2018. The total cost of the project is $5.7 billion and some $3.29 billion of this amount will be ensured through the loans, according to the statement.
Moreover, SOCAR signed loan agreements with around 23 financial institutions in the Turkish city of Istanbul on June 6, as part of constructing a new Star refinery in Turkey. The loan package consists of the funds of export-import banks (Spain, Italy, Japan, US and the Republic of Korea), some 16 foreign trade and investment banks, as well as one local bank.
Under the decree of Azerbaijani President Ilham Aliyev on additional measures to support the participation of the Azerbaijani side in the construction of the Star refinery in Turkey, SOCAR Turkey Yatirim joint-stock company was established with an authorized capital of $1.9 billion (with 40 percent share of the state).
The State Oil Fund of Azerbaijan will finance the government's share (40 percent or $760 million) of the joint-stock company, according to the decree.
The annual naphtha production volume, used by Petkim as the main raw material, will hit 1.66 million metric tons at the Star refinery. Along with naphtha, the new oil refinery will produce diesel fuel with ultra-low sulfur to the amount of 5.95 million metric tons, aviation kerosene - 500,000 metric tons, reformate - 500,000 metric tons, petroleum coke - 630,000 metric tons, liquefied gas - 240,000 metric tons, mixed xylene - 415,000 metric tons, olefin LPG - 75,000 metric tons and 145,000 metric tons of sulfur. The refinery will not produce petrol and fuel oil.
It is planned to refine Azeri Light, Kerkuk and Urals oil at the plant.
Edited by CN
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