SOCAR’s carbamide plant to start talks with buyers in 2017

Oil&Gas Materials 26 May 2016 15:08 (UTC +04:00)

Baku, Azerbaijan, May 26

By Azad Hasanli - Trend:

The carbamide plant of the State Oil Company of Azerbaijan (SOCAR) will start the talks with potential buyers in the first quarter of 2017, the plant's director Khayal Jafarov told reporters in Baku.

He noted that to date, over 70 percent of the work at the plant has been completed.

Jafarov added that 99 percent of the engineering work, almost 20 percent of the construction work at the plant has been completed and 90 percent of the needed equipment has been delivered to the country.

The plant's construction will be completed in September-October 2017 and the production of nitrogen fertilizers at the plant will start in early 2018, Jafarov added.

Saying that the carbamide plant is of great importance for the country's economy, he noted that the plant is expected to produce 650,000-660,000 tons of carbamide per year.

Azerbaijan's demand for carbamide is around 150,000-200,000 tons, he said, adding that two-thirds of the product will be exported.

"Turkey, as well as South European countries are the main markets for us," Jafarov said.

Further, Jafarov said that South Korea's Export-Import Bank (Eximbank) has allocated a credit line worth 100 million euros for the plant's construction, while 50 million euros has been received from Germany's Deutsche Bank.

The total cost of the project will be 900-920 million euros, including taxes, he added.