Front-End Engineering Design (FEED) work has officially begun under the Master Plan, the long-term investment project of Petkim Petrokimya Holding, SOCAR's petrochemical investment in Türkiye.
According to Report, citing the company, FEED licensing and engineering agreements have been signed with leading engineering firms. The Master Plan aims to increase ethylene and polypropylene production capacities while raising total polymer output to more than double its current level.
The company said that $70 million has been allocated for the FEED phase, which is scheduled for completion by the end of 2027.
Following the Memorandum of Understanding signed between SOCAR and Technip Energies in July, Petkim and Technip Energies have now signed agreements covering FEED services and licensing for MFSC (Mixed Feed Steam Cracker) technology.
During the FEED process, which follows the pre-FEED stage, the project's scope and technical, commercial, and economic parameters will be assessed in detail.
Petkim also signed a FEED agreement with Technip Energies, a licensing agreement with Univation Technologies, LLC for a polyethylene unit, a licensing and engineering agreement with Lummus Novolen Technology GmbH for a polypropylene unit, and a licensing agreement with Technip Energies for MFSC technology. These agreements mark an important milestone in the implementation of the Master Plan.
If a final investment decision is made after the completion of FEED activities, Petkim plans to increase its annual ethylene capacity from 588,000 tons to 1.2 million tons, while annual polypropylene capacity would rise from 145,000 tons to 550,000 tons.
The company also expects total polymer production to exceed twice its current level through the addition of new facilities and capacity expansions under the Master Plan.
Kenan Mirzayev, Head of Refining and Petrochemicals at SOCAR Türkiye, stated that following the Memorandum of Understanding signed with Technip Energies in July under the Master Plan project, the signing of the FEED agreement represents a concrete and significant step demonstrating that the project is progressing as planned.
"During the FEED stage, we will conduct the engineering work that will form the basis for the final investment decision by evaluating the project's technical and commercial parameters in greater detail. The signing of licensing and engineering agreements for polyethylene, polypropylene, and MFSC technologies also shows that significant progress has been achieved across different components of the project. We have allocated a total of $70 million to the FEED process and view this as an investment in Petkim's future," he said.
He noted that, if a final investment decision is reached after the FEED phase, the project is expected to significantly increase ethylene and polypropylene production capacities while more than doubling total polymer output.
Mirzayev described the Master Plan as a strategic transformation project that will meet the long-term needs of Türkiye's petrochemical sector while strengthening the company's competitiveness and sustainability.
He also pointed out that the project aims to support the long-term sustainability of Petkim's existing production infrastructure, enhance production capacity and technological capabilities, and deepen refining-petrochemical integration.
Founded on April 3, 1965, Petkim Petrokimya Holding is Türkiye's leading petrochemical complex. The company produces ethylene, polyethylene, polyvinyl chloride, polypropylene, and other petrochemical products used in the manufacture of plastics, textiles, consumer goods, and industrial products. To date, investments totaling $1.6 billion have been made to modernize Petkim, Türkiye's first and only integrated petrochemical complex.
SOCAR Türkiye holds the controlling stake in Petkim, whose shares are listed on the Borsa Istanbul stock exchange.