Azerbaijan to decide on long-term development strategy for OGPC

Oil&Gas Materials 2 December 2015 14:15 (UTC +04:00)

Baku, Azerbaijan, Dec.2

By Maksim Tsurkov - Trend:

The State Oil Company of Azerbaijan (SOCAR) will decide on the long-term development strategy for the Oil and Gas Processing and Petrochemical Complex (OGPC) in 2016, Emil Alkhasli, deputy director general for OGPC project said.

He made the remarks during the 19th annual CIS Downstream Week on refining, petrochemicals, petrochemical refining and petrochemical industry in Baku Dec.2.

Work on the project continues, said Alkhasli, adding that currently, negotiations are underway with potential investors led by the Japanese Mitsui.

"We will also decide on the financial strategy of the complex and will complete the work on the long-term development strategy in 2016," he added.

"Marketing research has been conducted, location plan of the gas processing plant and petrochemical complex is ready and their environmental impact assessment has been worked out," said Alkhasli.

The cost of construction of the OGPC is $17.1 billion (including interest on loans received during the construction period). Some 30 percent of the project's cost is planned to be financed with the authorized capital (nearly $5 billion), while 70 percent of the projects - with the borrowed capital (about $12 billion).

The total cost of the first phase of the OGPC project is estimated at $7 billion (including interest on loans - $8.45 billion). The payback period of the project will last four to five years.

The OGPC will be located 60 kilometers from Baku and will consist of three processing enterprises and a thermal power plant.

The project's implementation will improve the product quality, enhance the export potential of the country and help protect the environment of the capital.

The annual capacity of the refinery within OGPC will be 8.5-9 million tons, the gas processing plant - 12 billion cubic meters, petrochemical production - over 1 million tons (the capacity of the plant for producing polyethylene will be 800,000 tons, polypropylene production unit - 300,000 tons).

Edited by SI


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