Foundation of new Turkish refinery laid in autumn
Azerbaijan, Baku, June 7 / Trend E.Ismayilov /
A foundation for the new oil refinery will be laid out in Turkey this autumn to meet the needs of the Petkim petrochemical complex, in which the State Oil Company of the Azerbaijan Republic (SOCAR) has equity, member of the SOCAR-Turcas Board Kenan Yavuz said.
"The volume of investments needed to build refineries will reach $4.5-$5 billion," Yavuz said.
As the plant's total capacity will be 10 million tons, production will be directed to meet the needs of Petkim and Turkey's domestic market.
The total volume of investments required for the 2015 deadline to construct refineries and develop the energy sector and port logistics center will amount to $6 billion, of which $5.7 billion will be invested by SOCAR-Turcas.
Yavuz said that $50 million will be invested for the development of the port logistics center. As part of the second phase of the petrochemical complex development program, plans are to increase the production capacity after 2015 from the current 3 million tons to 6 million tons.
Sale levels are aimed to reach $15 billion by 2015 and $20 billion by 2020.
"Commission of the Baku-Tbilisi-Kars railway will also ensure strengthening the two countries' relations in the oil and chemistry sector, and promote increased investment in energy," Yavuz said.
He said that Petkim continues to provide technical assistance to SOCAR's Azerkimya through an exchange of necessary raw materials and products.
In 2008 the alliance between SOCAR and Turcas Petrol / Injaz Projects won a tender to buy a 51 percent stake of the chemical section, offering $2.04 billion. Now Turkey imports 70-75 percent of its chemical products demand. Investments in the development of Petkim will reduce imports by 30 percent.
The Petkim Petrokimya Holding manufactures plastic packaging, fabric, PVC and detergents. It is the only Turkish producer of such products, with a quarter of total production designated for export.