Baku, Azerbaijan, Nov.5
By Aygun Badalova - Trend:
Implementation of the project to build a new complex on oil and gas processing and petrochemical production (OGPC) in Azerbaijan will greatly satisfy domestic needs of the country and will become an opportunity for the further development of the sphere, as well as investment.
The managing director of financing energy projects of the Societe Generale French bank Laura Monroe-Singer made the remarks Nov.5 at the second OGPC forum.
Azerbaijani authorities provide strong support to the project she said.
The project will have a tremendously positive impact on Azerbaijan both from an economic and social (job creation, payment of taxes) point of view, head of the PricewaterhouseCoopers International Panel on Sustainable Development and Climate Change Malcolm Preston said in his speech at the forum.
Preston noted that his company is exploring various options of the project, in particular its impact on the economy and the environment, and one of its positive aspects is to reduce emissions of pollutants.
The total cost of the first phase of the project is estimated at $7 billion (given a loan interest - $8.45 billion). The payback period will be 4-5 years. Around 30 percent of the project will be implemented through state funds (the amount will be partially allocated during five years), while 70 percent - through the borrowed funds.
OGPC will be located 60 kilometers from Baku and will consist of three processing enterprises and a thermal power plant (TPP).
The OGPC construction project implementation will improve the product quality, enhance the export potential of the country and help protect the environment of the capital.
Oil products are produced at two Baku oil refineries with a total capacity of 16 million metric tons of oil per year. Both oil refineries belong to SOCAR, which annually processes approximately seven million metric tons of oil, extracted from onshore and offshore fields with SOCAR's own funds.