SOCAR’s new processing complex to be ready in 2021

The internal standard of profitability of the complex on oil and gas processing and petrochemical industry production will amount to 13 percent. The commissioning of this complex is planned for 2021, according to the interview of Vice-President of SOCAR (State Oil Company of Azerbaijan) Suleyman Gasimov, posted in SOCAR Plus newspaper.

According to him, the payback period of the complex will be 7-8 years. "These figures correspond to the figures of similar projects implemented in the whole world," Gasimov noted.

The cost of the project, determined within technical and economic justification, amounts to $17.1 billion (including accrued interest on loans, which were attracted in the period of construction).

According to Gasimov, the financing of approximately 30 percent of the project cost is planned to carry out at the expenses of charter capital (nearly $5 billion), and 70 percent - at the expenses of loan capital (nearly $12 billion).

"Around 90 percent of charter capital falls to the state and will be financed by Azerbaijan's State Oil Fund (nearly $4.6 billion), and the remaining 10 percent -by SOCAR (nearly $0.5 billion). It is expected that, the loan capital will be financed by foreign banks and if necessary - by State Oil Fund of Azerbaijan," Gasimov stressed.

The planned new complex will be constituted of gas processing, oil processing and petrochemical plants. Meanwhile, in accordance to the international practice, with the aim of providing the autonomous work of the plants, it is planned to construct an autonomous power block. The construction and the commissioning of the oil processing plant with the capacity of 10 million tons per year, will meet the country's demand for strategic oil product of the oil processing plant for next 20 years.

It is planned to produce around 3 million tons of petrol and nearly 3.6 million tons of diesel fuel per year. The product will correspond to the Euro-5 standard. In addition, it is planned to produce A-1 jet engine fuel (about 1.7 million tons) which meets the most modern Western standards, and other oil products. Moreover, in order to create additional value, it is planned to produce nearly 1.7 million tons of export-oriented petrochemical product.

"It is planned that, around 85-90 percent of the total volume of polyethylene (about 880,000 tons per year), polypropylene (around 780,000 tons per year) and butadiene (about 80,000 tons per year) which are produced in the petrochemical plant, will be exported to Turkish, as well as to European and Asian markets," Gasimov noted.

According to him, the population demand and the demand of production facilities for the purified natural gas will be provided in full volume and in accordance to the most advanced standards envisaged within the project of the gas processing plant with the capacity of 10-12 billion cubic meters per year.

It is planned to use the most modern technologies in new oil processing and petrochemical complex. Thus, it is expected to use technological processes using over 27 special licenses. In total, over 40 modern installations will be commissioned in the complex. When coming to the effectiveness of the processing, the depth of oil processing will be increased to 95 percent, and the output of light oil products - to 85 percent.


/Trend/