Baku, Azerbaijan, May 30
By Maksim Tsurkov, Azad Hasanli - Trend:
The investment decision on the new petrochemical complex of SOCAR in Turkey will be made at the end of 1Q2019, Director of SOCAR Turkey Enerji Company Zaur Gahramanov told reporters.
He noted that, currently Petkim complex is the only petrochemical enterprise in Turkey.
"Its products cover the needs of the Turkish market by only 17 percent, and the complex is not physically able to produce more than these volumes. For this reason, a year ago, we made a decision about the project of the complex, which will increase the volume of petrochemical products. Engineering work on the new project continues and will be completed by the end of this year. We are preparing to make an investment decision at the end of 1Q or April next year," Gahramanov said.
He noted that negotiations on all licenses were held with BP and Axens companies, and the necessary licenses were purchased.
"In addition, the complex will produce approximately one million tons of purified terephthalic acid (PTA) and polypropylene. Last year, $11.5 billion deficit in Turkey's trade balance fell to the share of petrochemical products. The new complex will allow for closing this deficit by 40 percent. For this reason, the Turkish government is providing great support in this matter. We are negotiating the creation of a private industrial zone on the Aliaga Peninsula. Both Petkim complex together with STAR refinery, and a new complex will be covered by this project, and a new industrial zone will be created. It may be opened by the end of this year," Gahramanov said.
He said that it is too early to talk about the volume of investments, and the negotiations with companies are underway.
"According to initial estimates, investments in the range of $1.6 – $2.2 billion will be required. Many large petrochemical companies are interested in partnership regarding this project because Turkey is a very interesting market. However, even in the absence of partners, we are determined to implement the project. Our investment decision does not depend on the availability of a partner. Of course, if there is one, we will share the investment risks, and the costs will decrease. SOCAR Turkey's internal resources and revenues from Petkim's activities allow for not referring to the parent company. This is a project that can be invested in, we do not see any problems," Gahramanov said.
He added that the construction is planned to start soon after the adoption of the investment decision, possibly in the middle of next year.
"All engineering works will be completed by that time. It is planned that by the end of 2022 the complex will be built, and in 2023 it will be put into operation, which corresponds to the investment program of SOCAR until 2023, and will be launched by the centenary of the Republic of Turkey. This is a wave-like market, and we believe that by that time we will be able to catch a wave," Gahramanov said.
It is expected that in 2018, SOCAR Turkey Enerji's consolidated turnover will reach $ 15 billion and the company will become the second largest industrial company in Turkey with 5,000 employees and $3 billion dollars of export potential. It aims to become the largest Turkish industrial company by 2023. The company also owns a controlling stake (51 percent) in the petrochemical complex Petkim on the Aliaga Peninsula.
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