Azerbaijan, Baku, Oct. 20 / Trend , N.Ismayilova /
Azerbaijan's only methanol plant AzMeCo is planning to export about 90 percent of the methanol produced in the country, AzMeCo Chairman Nizami Piriyev told journalists.
"About 90 percent of the produced methanol will be exported. However, we plan to use methanol as a raw material in the future to build a number of small businesses with a view to increase the share of consumption in the domestic market and economy's non-oil sector," Piriyev said.
Today the European consulting companies conduct market analysis, which identify demand in AzMeCo production and possible sale markets.
The total project cost of building a methanol plant is $ 360 million. The funding of the project has been already completed. Taking into account bank interest, its cost exceeds $ 400 million.
"About 70 percent of these funds accounted for the bank loans. The main creditor of the company is the International Bank of Azerbaijan, which also assited to attract loans from the Export-Import Banks of other countries," Piriyev said.
Piriyev said AzMeCo learned a valuable experience of working with the European Bank for Reconstruction and Development (EBRD). Previously, the company did not use EBRD's funds in the amount of $ 120 million in the first phase of the project.
"This issue is put aside, but we intend to apply for financial support to the EBRD in the realization of the projects future," he said.
The methanol plant will be the only one in the South Caucasus and Central Asia and will be commissioned in 2012. Construction of the plant is expected to be completed later this year when startup work will begin taking from three to five months. Methanol production is scheduled to begin in April and the plant will reach its designed capacity of 560,000 tons in June 2012.
Methanol production in the country will be increased up to 720,000 tons per year.
AzMeCo was founded in November 2007. In addition to its portfolio of international hydrocarbon projects in the Caspian Sea basin, the company developed a master plan for investment in the Azerbaijani non-oil sector.