Star refinery’s construction in Turkey completed by over 75%
Izmir, Turkey, Sept. 9
By Maksim Tsurkov – Trend:
Construction of the Star oil refinery in Turkey has been completed by over 75 percent, Director General of the refinery Ibrahim Palaz told reporters in Izmir, Turkey.
He noted that some 99 percent of the design work has been completed.
“Already 90 percent of all equipment has been delivered to the plant and processed,” Palaz said. “Before late September, this figure will rise to 95 percent. The mechanical work will be fully completed in September 2017, and after that the plant will start its work in test mode. The start of production at the refinery is scheduled for April 2018 and the plant is expected to reach its full capacity during three-six months.”
He said that the project’s cost is $5.7 billion.
"The share of SOCAR in the financing of the plant is $2.4 billion, and the remaining $3.3 billion are provided at the expense of 23 banks’ funds,” said Palaz. “At the moment, SOCAR has already allocated $2.2 billion from its share. The banks have no problems with financing, payments are made in a systematic manner.”
He said that the refinery will enable Turkey to reduce imports of oil products by 50 percent.
“In addition, Turkey will cover a budget deficit of $2.5 billion by the construction of Star refinery,” said Palaz. “At present, 12,000 people are engaged in the construction of the plant, in October at the peak time, this figure will reach 15,000 people, and number of permanent employees will be 850 after the launch of the refinery.”
The annual naphtha production volume, used by Petkim as the main raw material, will amount to 1.66 million tons at the STAR refinery.
Along with naphtha, the new oil refinery will produce diesel fuel with ultra-low sulfur to the amount of 5.95 million tons, aviation kerosene - 500,000 tons, reformate - 500,000 tons, petroleum coke - 630,000 tons, liquefied gas - 240,000 tons, mixed xylene - 415,000 tons, olefin LPG - 75,000 tons and 145,000 tons of sulfur. The refinery will not produce petrol and fuel oil.
It is planned to refine Azeri Light, Kerkuk and URALS oil at the plant.
At present, the share distribution in the project is as follows: 60 percent is owned by Rafineri Holding A.Ş. (100 percent owned by SOCAR Turkey Enerji A.Ş.), which had previously acquired all the remaining 18.5 percent share of Turcas Petrol in the project, and 40 percent belongs to SOCAR.
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