SOCAR plans to start export of high density polyethylene to Russia this month

The State Oil Company of Azerbaijan (SOCAR) is planning to start export of high density polyethylene to Russia this month.

Report informs citing Russian ‘rupec’ that 1,500 tonnes are planned to be delivered to the Russian market by the end of this month. The product will be supplied by SOCAR's subsidiary - SOCAR Rus.

For transportation of the product to Russia, a new route was also chosen. The product will be transported from Hovsan port to Astrakhan port. A few months ago, transportation of polypropylene was tested too.

Head of SOCAR Rus Farid Jafarov said that expansion of the logistics chain is planned to reduce the base price of the product: "We hope to offer more competitive prices and, generally, increase the attractivess of prices of the polymer products in the Russian market. SOCAR Polymer's project has been closely linked with Russia since 2013. It was implemented thanks to Gazprombank’s financing. Another Russian company – Kriogenmash OJSC has prepared a nitrogen production plan and a unique system to store the liquid nitrogen in seismic-resistant vertical reservoirs."

Export of polypropylene to Russia started in February and more than 8,000 tonnes of polypropylene have been transported so far. 

Notably, SOCAR Polymer project incorporates the Polypropylene Plant with the annual producing capacity of 184,000 tonnes and a High-Density Polyethylene Plant with the annual producing capacity of 120,000 tonnes. The Polypropylene Plant was inaugurated on July 18, 2018, with participation of President of Azerbaijan Ilham Aliyev and President of Italy Sergio Mattarella. SOCAR Polymer's high-density polyethylene plant was inaugurated with participation of President Ilham Aliyev on February 18. 60% of SOCAR Polymer's investment value was covered from the funds raised from Gazprombank.