Carbamide Plant spends 300 mln EUR of attracted loan

Baku. 23 October. REPORT.AZ/ Over 300 mln EUR out of 500 mln EUR loan attracted to the Carbamide Plant of the State Oil Company of Azerbaijan Republic (SOCAR), which is under construction in Sumgayit, has been used.

Report informs, the plant's director Khayal Jafarov said.

Notably, 500 million EUR loan allocated for the project financing. 251 mln EUR of the loan was allocated by Korean Eximbank (KEXIM), 249 mln EUR by UniCredit, Societe Generale, Deutsche Bank under the guarantee of KEXIM. At the initial stage, the project was funded at the expense of funds allocated from the state budget.

According to him, repayment of the attracted loan will begin by late 2019: "The plant is expected to be put into operation in the mid-2018. The attracted loan will be repaid 1.5 years after the commissioning. The loan repayment period is 10 years".

Jafarov noted that according to the current price of natural gas and carbamide, the plant will gain benefit 8-9 years after its commissioning.

According to him, by late October, pipes will be constructed to the plant for supply of raw materials - natural gas and water. 

"Daily production of 1.5 million cubic meters of gas is planned. No agreement on acquisition of natural gas has been signed yet. However, given the fact that the "Azəriqaz" Production Union is a structure of SOCAR, there will not be a problem with it. SOCAR's Marketing and Economic Operations Department and SOCAR Trading will deal with the sale of the product to be produced at the plant. 150,000-200,000 tons of produced carbamide is for internal market and the rest is intended for export. About 500,000 tons will be exported," Jafarov added.

Notably, agreement for projecting, procurement and construction aimed at building carbamide production enterprise was signed between SOCAR and Samsung Engineering Co.Ltd (South Korea) on March 13, 2013. According to contract, after completion of construction works, Samsung Engineering will carry out all necessary tests and will provide the enterprise to SOCAR completely ready for use. Haldor Topsoe (Denmark) and Stamicarbon B.V (Netherlands) are licensors of the plant for production of ammoniac and carbamide. Finnish company Neste Jacobs Oy will provide consulting and independent inspection services on the project management.