SOCAR's new refinery in Turkey to reduce its current account deficit
Azerbaijan, Baku, Aug. 16 / Trend A.Badalova /
Kenan Yavuz, a board member at Turkey's leading petrochemical producer Petkim and CEO of SOCAR-Turcas Petrol, said on Monday that upon the completion of İzmir's Aliaga oil refinery field, Turkey's dependence on oil and oil products will be reduced by billions of dollars per year, Today's Zaman reported.
"When we complete the construction of the $5 billion Petkim Aliağa refinery, which will happen by 2015, its total oil extraction capacity will be 10 million tons a year. [At Aliaga] we will produce naphtha, fuels for jetliners, low-sulfur diesel fuel, liquid petroleum gas and other petrochemicals of which Turkey is presently a net importer, which should reduce Turkey's current account deficit (CAD) by billions of dollars," Yavuz said.
"The Aliaga refinery will be Turkey's biggest repair project. We will export many of the chemicals produced here, resulting in a positive effect on our foreign trade deficit," Yavuz noted.
It is planned to start construction of a new oil refinery in Aliaga Industrial Zone in the Turkish city of Izmir in October 2011. This plant is needed to meet the Turkish Petkim Petrochemical Complex's needs in raw materials, in which SOCAR has a share.
The alliance between SOCAR and Turcas Petrol /Injaz Projects won a tender in 2008 to buy a 51percent stake in chemical projects, offering$2.04 billion.Now Turkey imports 70-75 percent of its demanded chemical products. Investments in the development of Petkim will reduce imports by 30 percent.
In 2010, Petkim's production reached a record level-3.24 million tons of oil and exports amounted to $531 million. Petkim also has the ability to produce 226 megawatts of electricity through steam and gas turbines.