Investment decision on SOCAR's new petrochemical complex in Turkey to be adopted in first quarter of next year - UPDATED

First news published at 14:29

Baku. 29 May. REPORT.AZ/  "Investment decision on the project of the new petrochemical complex of the State Oil Company of Azerbaijan (SOCAR), which is planned to be implemented in Izmir (Turkey), is expected in the first quarter of next year." Report informs, "SOCAR Turkey Enerji A.Ş" Director General Zaur Gahramanov told reporters.

According to him, the engineering works of the new project are underway: “The works expected to be completed by the end of this year. We are going to adopt a final investment decision in the first quarter of the next year. Necessary licenses have been obtained from BP and Axens companies. It is planned to produce of additional 1 ton of Pure Terephthalic Acid (PTA) and Polypropylene Production".

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Regarding the cost of the new petrochemical complex, the general manager noted that the construction of the project was initially estimated at $ 1.6-2.2 billion. “At present, the negotiations with companies are underway. It is early to speak about the cost of the project.  However the construction of new petrochemical complex was initially estimated at $ 1.6-2.2 billion".

According to him, financing of the project can be carried out by the revenues from Petkim at the expense of internal resources of SOCAR Turkey Energy and foreign funds.

Director General noted that big petrochemical companies are interested in the project and negotiations are underway: "Turkey is an interesting market. Big companies are applying to be a partner in the new project and negotiations are underway. But if there are not other companies, we will implement this project. We are determined to implement this project. "

Nevertheless, he said that if the project has partners, both financial risks can be shared and volume of the project can be increased.

According to the Director General, it is planned that the construction of the complex will start in mid-2019, completion of construction by the end of 2022, and exploitation in early 2023.

At present, Petkim petrochemical complex meets 17% of Turkey's demand for petrochemical products. "It is not physically possible to produce more. So one year ago, we introduced this project to increase the volume. $ 11.5 billion shortage was recorded related to oil and chemical products in the Turkish trade balance last year. We will meet 40% of this shortage with new petrochemical complex project. So, the Turkish state supports us greatly”, Zahid Gahramanov said.

According to him, negotiations are currently underway on the creation of the Special Industrial Zone in Aliagha Peninsula.