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Promising route for Azerbaijan’s carbamide supply to Ukraine outlined

Business Materials 19 August 2018 16:22 (UTC +04:00)

Baku, Azerbaijan, Aug. 19

By Ilkin Shafiyev – Trend:

Azerbaijan’s state oil company SOCAR is considering the possibility of supplying carbamide to Ukraine with transshipment through the Odessa seaport, the local media reported.

The negotiations were held between head of the European Economic Chamber in Ukraine Ivan Buntov and deputy head of SOCAR’s marketing department Maksud Mahmudov.

Currently, SOCAR is considering the possibility of carbamide transshipment through the Odessa port, exploring potential sales markets, conditions of cargo registration and technical capabilities of the enterprise.

Chief dispatcher of the branch of the Administration of Seaports of Ukraine in Odessa Denis Karpov assured the Azerbaijani side of the readiness to consider any proposals regarding transshipment.

"The Odessa port has a sufficient reserve of berthing and storage capacities,” he said. “Two of Ukraine's biggest container terminals operate in its territory, which provide world-class service. In case of organizing regular shipments of big consignments, it is possible to dispatch a container train, which will run from the port to the required region of the country weekly."

“The port already has experience of cooperation with SOCAR in transshipment of oil products, which can serve as a point for development of new areas of joint work,” Karpov said.

The commissioning of SOCAR’s carbamide plant in Azerbaijan’s Sumgait city is scheduled for the end of this year.

The plant will produce 1,200 tons of ammonia and, subsequently, 2,000 tons of carbamide per day. It is planned to supply a quarter of production, that is, 150,000-200,000 tons of carbamide, to the Azerbaijani domestic market. The remaining part will be exported to Turkey, Georgia and the markets of the Black Sea and the Mediterranean Sea countries.

The cost of the project is 750-780 million euros.

South Korea’s Samsung Engineering won the tender for the construction of the carbamide plant. Samsung Engineering acts as a general contractor of the plant’s construction, but it has no license for production of carbamide and ammonia, which will be by-product in the carbamide production process.

Therefore, the corresponding licensing agreements were signed with Haldor Topsoe company (Denmark) for production of ammonia and Stamicarbon B.V. company (the Netherlands) for production of carbamide.

Production at the plant will be environmentally friendly.

The plant will have an autonomous electricity system. The plant will consume 25-26 MW of electricity per hour.

The carbamide plant will require 1.3 million cubic meters of gas per day or 435 million cubic meters of gas per year for operation at full capacity.

Follow the author on Twitter: @IlkinShafiyev

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