Expiry terms of proposals for financing SOCAR project in Turkey
Baku, Azerbaijan, March 17
By Emin Aliyev, Emil Ismayilov - Trend:
The process of agreeing the issue of funding the construction of the SOCAR (State Oil Company of Azerbaijan) refinery project in Turkey is at the completion stage, Vice-President for Economic Affairs Suleyman Gasimov told Trend on March 17.
"All the banks and interested parties have already submitted their final proposals to participate in the financing of this project which is valid until March 31," he said.
Currently, work is being conducted to complete the whole process of negotiation before the deadline, according to Gasimov. Though he said in the case of necessity, these periods may be extended.
Since 2008, SOCAR Turkey Enerji A.Ş., has acquired a 62 percent share in the Turkish petrochemical complex Petkim which comprises factories for production of high and low density polyethylene, polypropylene , polyvinyl chloride, acrylonitrile, ethylene glycol, purified acids, aromatic hydrocarbons, ethylene - propylene, hypochlorite, vinyl chloride monomer , phthalic anhydride , terephthalic acid and other products. The holding has a leading position in Turkey's petrochemical products market. SOCAR takes sequential steps in order to develop its petrochemical assets.
The construction of a new refinery STAR with an annual capacity of 10 million tons is aimed at optimising the demand for raw materials and to reduce the amount of fuel imported to Turkey. It is planned to commission the refinery in 2017.
In May 2013, SOCAR signed an EPC contract (Engineering, Procurement and Construction) with a consortium of companies to build the STAR oil refinery. The winner of the tender for the construction was an alliance of companies Tecnicas Reunidas S.A., Saipem S.p.A, GS Engineering & Construction Corp and Itochu.
It is planned to carry out the processing of such types of crude oil as Azeri Light, Kirkuk and the Urals at the refinery.
At the STAR plant, the annual production of naphtha which is used as a primary raw material by Petkim, will be 1.66 million tons. Currently, more than 80 per cent of Petkim's needs in naphtha are met through imports, but with the introduction of a new oil refinery, dependence on imports will be reduced to zero.
Along with naphtha, the new refinery will produce diesel fuel with ultra-low sulphur to the amount of 5.95 million tons, as well as 500,000 tons of aviation kerosene, 500,000 tons of reformates, 630,000 tons of petroleum coke, 240,000 tons of liquefied gas, 415,000 tons of mixed xylol, 75,000 tons of olefin liquefied gas and 145,000 tons of sulphur. The refinery will not produce gasoline and fuel oil.
Translated by S.I.
Edited by S.M.