SOCAR to fully modernize Azerbaijan's chemical industry

/By AzerNews/

By Aynur Karimova

Azerbaijan's state energy giant SOCAR will completely upgrade the country’s chemical industry, including Azerkimya production association by 2020.

This was stated by SOCAR Head Rovnag Abdullayev during an event dedicated to the 70th anniversary of Azerbaijan’s chemical industry on October 30.

“We plan to carry out full modernization of the chemical production by late 2019,” he said. “We should carry out big work; implement new projects by using funds from the state budget. One of our main tasks is to provide the new plants to be constructed as part of SOCAR Polymer’s project with raw materials.”

Abdullayev also noted that liquidation of old enterprises became the first step in the implementation of the modernization program.

SOCAR Polymer’s project is being implemented at the Sumgayit Chemical Industrial Park. The project will allow producing 180,000 tons of polypropylene and 120,000 tons of polyethylene a year.

It is expected to start the production of polypropylene in 2016, and the production of polyethylene in 2017. The main part of the products will be exported to the markets in Turkey and Western Europe.

SOCAR to determine investors for OGPC in H1 2016

Abdullayev further noted that SOCAR will determine investors for the project on establishing a new gas processing and petrochemical complex in the first half of 2016 while works on the initial design of the complex are currently underway.

"The stage of basic modeling, development of the project and assessment of costs is being completed. We are in talks with Japanese companies, the government and Eximbank. We want to implement this project in cooperation with Japanese companies, and those companies which will make the best offers will be chosen," the SOCAR head said.

The OGPC project has multiple interfaces not only between process units, utilities, and offsite facilities, but also between the new gas processing and petrochemical facilities. The project costs about $17.1 billion plus interest for the loans to be received during construction.

The OGPC will be constructed roughly 60 kilometers from Baku. It will consist of three processing plants and a thermal power plant. The project will be completed in late 2022 - early 2023.

The OGPC construction project will improve product quality, enhance the export potential of the country, and help protect the environment of the capital.

The annual capacity of the OGPC refinery will be 8.5-9 million metric tons, the gas processing plant will be 12 billion cubic meters, and petrochemical production will exceed 1 million metric tons.

Transporting Russian gas to Iran via Azerbaijan is possible

Commenting on reports on the gas supply by Russian Gazprom Company to Iran, he told journalists that SOCAR does not rule out the possibility of transportation of Russian gas to Iran through Azerbaijan.

"Azerbaijani gas pipelines can well be involved in these operations," he added. "We have not received such a proposal and if the route is advantageous, it should not be ruled out."