(Zaman)- The Energy Market Regulatory Authority (EPDK) has received applications equaling $10 billion to establish a refinery to transfer crude oil to Turkey.
Kazakhstan's national oil and gas company, KazMunaiGaz, is reportedly conducting feasibility studies for the same purpose, reports Trend.
If KazMunaiGaz does not establish a refinery, the company still plans to approve a partnership with Russias Lukoil, which officially applied to the EPDK to establish a refinery in the Black Sea costal city of Zonguldak.
A considerable portion of Turkeys deficit in petrochemicals will be met with the new refineries and petrochemical plants, energy experts say.
Turkey is currently importing a high amount of petrochemicals to meet its energy needs.
Turkeys capacity deficit in refineries reached 20 percent in 2005, and imports about six million tons of products annually to cover the shortfall.
Authorities say the production of Euro-4 low sulfur fuel will be compulsory by 2007, and the rapid development of the Turkish oil market will greatly increase the need for new refineries.
The new plants are expected to reduce Turkeys 60 percent import dependency, experts say.
Following the collapse of the Soviet Union, Kazakhstan doubled its oil production; increasing production to over a million barrels per day.
The country has become one of the worlds top 20 oil exporters.
The Central Asian nation is expected to triple its production over the next 20 years.
Nearly 85 percent of the oil production in Kazakhstan is currently realized by foreign companies, with 15 percent by KazMuniaGaz.
Wanting to transfer oil to the Caucasus and Mediterranean, Kazakhstan signed an agreement to transport its oil via the Baku-Tbilisi-Ceyhan Crude Oil Pipeline on 16 June 2006.
However, a long involved procedure must be completed before a refinery license can be issued.
The EPDK will examine investment evaluations, tariffs, and advice for marketing projections, partners and the distribution of shares.
The authority also requests documents such as an opening permit and the completion of an environment report that proves the necessary precautions have been taken to protect the environment.