Azerbaijan to begin new oil and gas processing complex construction in 2013

Oil&Gas Materials 5 December 2012 20:28 (UTC +04:00)

Azerbaijan, Baku, Dec. 5 / Trend, E.Ismayilov /

SOCAR plans to begin constructing a gas processing plant in the third quarter of 2013 within establishing a new complex on oil and gas processing and production of petrochemical products (OGPC) in Azerbaijan, SOCAR head Rovnag Abdullayev told media today.

He said that the construction work will be conducted in the following way: gas processing plant, oil refinery. In parallel, the operations will be conducted to create the capacity for the petrochemical production.

Currently, the project work, as well as detailed engineering, are underway within establishing a processing complex. They will allow estimating the project exactly.

Regarding the amount of possible investments in the project next year, Abdullayev said that the issue will be solved by late 2012. "We expect the expenditure worth $ 300 million," SOCAR head said.

The new complex worth $17 billion (taken into account interest on bank loans) envisages the construction of a petrochemical company, an oil refinery with a capacity of ten million tons per year, as well as a gas processing plant with capacity of 10 billion cubic meters per year. Depth of processing at the plant will be about 95 percent, while the yield of light oil products - 85 percent.

In the long term capacity of the gas processing plant is planned to increase to 15 billion cubic meters a year. As part of the new complex it is planned to create heat and energy center with capacity of 250 megawatts.

The complex will be located 60 kilometers from Baku. The entire OGPC complex is scheduled to open by the end of 2020.