Baku, Azerbaijan, Nov. 28
Maksim Tsurkov - Trend:
The Joint venture (JV) of the Azerbaijani SOCAR and German UNIPER (SOCAR-UNIPER) in early January 2018 will begin construction of a steam turbine-generator plant on the territory of the Ethylene-Polyethylene plant in Sumgayit, plant director Ogtay Niftaliyev said Nov.30.
He said the steam generator complex on the territory of the plant was built in 2000 on basis of the Japanese technology.
"The complex provided all the Sumgayit chemical production, but after the factories were closed, we had a surplus of steam.To use it expediently, SOCAR signed a contract with UNIPER, and this JV will build a new turbine here.The foundation has already been laid, the contracts have been signed, the land has been leased to SOCAR- UNIPER It is expected that construction works will start from early January 2018, "Niftaliyev said.
The corresponding agreement on the creation of SOCAR-UNIPER for the production of a turbogenerator plant was signed in May 2016 in Baku by the head of SOCAR Rovnag Abdullayev and the president of UNIPER Klaus Schaefer. 51 percent in the joint venture belongs to SOCAR, 49 percent - UNIPER.
The cost of the SOCAR-UNIPER joint venture is estimated at 26 million euros.
This project is aimed at increasing economic efficiency of the steam-generating complex at the Ethylene-Polyethylene plant, and it will ensure production of additional volumes of electricity.
Roughly 20 million euros for the project will be drawn from a Bavarian bank for a period of 15 years at an annual rate of one percent.
The initial capital of the joint venture will amount to four million euros, and the funds will be invested by UNIPER. SOCAR will provide equipment worth two million euros.
"The unit will begin production of steam in 2018," head of SOCAR said. "The commissioning of the unit will reduce the prime cost of steam production to 0,019 manats per cubic meter, which is a very low figure for Azerbaijan."