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AzMeCo determines methanol sell markets

Business Materials 12 March 2010 13:17 (UTC +04:00)

UK, London, March 12 / Trend N.Ismayilova /  

The Azerbaijani company AzMeCo attracted more investors to realize the first phase of the project to build a methanol plant. Presently, the company searches for investors for the second phase, involving the production of fertilizers, AzMeCo CEO Nasib Piriyev said in a speech at the trade and investment forum" The UK in Azerbaijan "in London March 8. The forum was organized with the support of the Middle East Association and the International Bank of Azerbaijan.

The project consists of three phases. In the first phase, the production capacity of the methanol plant will be 720,000 tons per year. The construction of the plant is expected to be completed in late 2010 and its commissioning - in 2011.

The total cost of the project's first phase is $324 million, of which $85 million provided through the company's own funds and $120 million - EBRD.

The International Bank of Azerbaijan also plays a key role in financing the project from the very beginning of its implementation. Today the project is funded by the Black Sea Bank for Reconstruction and Development and the EDC of Canada," Piriyev said." In addition, the German, Austrian and Dutch development banks have also expressed interest in funding the first phase of the project. "

According to him, the major buyers of finished products (methanol) will be a multinational company Vitol and Mitsubishi Corporation.

The second phase of the project envisages construction of fertilizer plant AzerGubre - complex for production of ammonia, urea and formaldehyde. Plant's capacity will be 1,100 tons of ammonia, 2,150 tons of urea and 115 tons of formaldehyde per day. The total value of the second phase of the project is $ 700 million investment capital will be repaid within five years.

"EBRD has expressed desire to participate in this project, but we are still looking for additional investors," he said.

According to him, the third phase of the project involves the production of derivatives of methanol and urea. AzMeCo plans to begin production of acetic acid, DME and melamine. The total cost of the third phase is $300 million.

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