Mechanical works in SOCAR Carbamide plant to complete in December

Baku. 27 April. REPORT.AZ/ Mechanical works at SOCAR's Carbamide plant in Sumgait will be completed in December.

Report informs, Director of Carbamide plant Khayal Jafarov has said during  SOCAR 2nd International Caspian and Central Asia Downstream Forum - Trading, Logistics, Refining, Petrochemicals.

According to him, the plant will be commissioned to SOCAR in the II quarter 2017.

Providing information on works done so far, Kh. Jafarov said that the project was implemented by 95%: "Engineering and procurement works have been completed. The acquisition was completed in January 2017. 95% of equipment is in the country. 82% of construction works completed. Construction of communication lines for electricity will be completed in June”.

According to him, currently 2500-3000 people employed for construction works, but this figure in process of operation will be 300-350 people. Kh. Jafarov noted that during the plant's construction, a total of 10 mln man/hour security works have been implemented and this figure will reach 15 mln man/hour in 2018.

Speaking on plant's financing, he noted that 251 mln EUR loan allocated by Korea Eximbank (KEXIM), 249 mln EUR by UniCredit, Societe Generale and DeutsceBank under KEXIM guarantee: “At initial phase, the project was financed from state budget”.

He said the company will produce 650,000-660,000 tons carbamide a year. 150,000-200,000 tons will be kept for domestic market, remaining part will be exported: “Turkey will be the main export route in exports. This country imports 1.5 mln tons carbamide each year. Georgia and other Black Sea and the Mediterranean countries may also be the export routes."

Carbamide plant is the only project that is being implemented by state program. It gives a special importance to the project", Kh.Jafarov said.

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"The plant is being built within the framework of the State Program approved by President Ilham Aliyev “On reliable provision of food products for the population of Azerbaijan” (2008-2015) and the “State Program for the Development of Industry in the Republic of Azerbaijan” (2015-2020). In order to implement the project, on March 13, 2013, SOCAR and South Korea's Samsung Engineering Co. Ltd. have signed a contract on engineering, supply and construction works for construction of a carbamide plant. As part of the contract, after the completion of construction and carrying out all the necessary works the plant will be commissioned to SOCAR. Haldor Topsoe (Denmark) and Stamicarbon BV (the Netherlands) are respectively officially licensed producers of ammonia and carbamide. Finnish "Neste Jacobs Oy” company provides consulting and independent audit services for the project”, he added.

Notably, the plant, which will consist of compartments for production of ammonia, liquid and granulated carbamide, will produce 2,000 tons carbamide and 1,200 tons ammonia per day.