Situation with LNG in Azerbaijan's domestic market changes

Economy Materials 15 November 2019 10:16 (UTC +04:00)
Situation with LNG in Azerbaijan's domestic market changes

BAKU, Azerbaijan, Nov. 15

By Anastasiya Savchenko – Trend:

The situation related to the liquefied natural gas (LNG) has changed in the domestic market of Azerbaijan from the second half of 2019, head of the Azerbaijani Center for Petroleum Research Ilham Shaban told Trend.

"Previously liquefied gas was mainly consumed by the transport sector and only a certain part was used by the population, the industry was not involved in this sector," the expert said.

Shaban stressed that since then, for objective reasons, the structure of consumption has changed.

“A polypropylene plant, built as part of the SOCAR Polymer project, opened in 2018,” head of the center said. “Another plant for the production of high-density polyethylene was commissioned in February 2019 as part of the project.”

“They were designed to provide the plant with raw materials through the Heydar Aliyev Baku Oil Refinery which is being modernized,” Shaban added. “However, for certain reasons, the modernization of the Heydar Aliyev Baku Oil Refinery will be delayed until 2023.”

The head of the center also stressed that presently, the Heydar Aliyev Baku Oil Refinery is unable to provide the project with raw materials.

“A decision was made for these plants (built within the SOCAR Polymer) to work by using the imported raw materials,” Shaban said. “But it is difficult to produce competitive products by using the imported raw materials. Therefore, a decision was made to supply LNG to the Azerikimya production union. After processing liquefied gas, Azerikimya production union receives the corresponding raw materials supplying it for the production of polypropylene."

“Presently, besides the industrial sector, LNG is also used for the needs of the population in remote settlements,” head of the center said.

"LNG from Azerbaijan is transported to such countries as Afghanistan, Pakistan, etc.," Shaban added.

LNG is natural gas (mainly methane) artificially liquefied by cooling to minus 160° C for easy storage and transportation. It is again converted into gas at special regasification terminals for using in households.


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