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Azerbaijan plans to build synthetic motor oils plant

Business Materials 8 June 2016 20:45 (UTC +04:00)

Baku, Azerbaijan, June 8

By Maksim Tsurkov - Trend:

Azerbaijan is studying the possibility to build a plant for production of synthetic motor oils using the natural gas liquefaction technology at the Sumgait Chemical Industrial Park (SCIP), according to the 2016 catalogue of Azerbaijan's investment projects published by the Azerbaijan Export and Investment Promotion Foundation (AZPROMO).

"Major car manufacturers recommend the use of synthetic motor oils," says the catalogue. "Considering that there is no such production in Azerbaijan, import volumes are high and continue to rise."

Synthetic motor oils can be produced using the gas-to-liquids (GTL) technology [natural gas liquefaction], according to the catalogue.

"Considering the large reserves of the Shah Deniz gas field, Azerbaijan has good opportunities to develop this technology," says the catalogue. "Construction of the plant will be a driver of the chemical production's development, and liquefied gas can be used as a raw material for production of other chemical products."

The project's cost is estimated at $350 million. Its implementation period is two years and investments are planned to be repaid in eight years.

Azerbaijan's President Ilham Aliyev signed a decree to create the Sumgait Chemical Industrial Park in December 2011.

The Sumgait Chemical Industrial Park includes the following residents: Azertexnolayn, SOCAR Polymer, Azerfloat, Azerbaijan Fibro Cement, SIKA company, Baku Non-Ferrous Metals & Ferroalloys Company and MST Engineering.

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Follow the author on Twitter: @MaksimTsurkov

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