Beginning of construction of socar"s new petrochemical complex postponed till end of 2013

Beginning of construction of a new SOCAR's complex for oil and gas refining and production of petrochemical products (OGPC) has been postponed again.

SOCAR President Rovnag Abdullayev told journalists yesterday that construction of the complex is planned to begin at the end of 2013.

During discussion of Azerbaijan's state budget for fiscal year 2013 it was stated that construction of OGPC is planned to begin in mid-2013. Early this year the term was changed and it was planned to begin construction in September 2013.

The budget of the State Oil Fund of Azerbaijan (SOFAZ) for fiscal year 2013 approved by President includes the item of expenses intended for funding of SOCAR's share in OGPC to the amount of 211,950,000 AZN.

The new commission was created in April 2013 to prepare for this project. According to unofficial information, the Azerbaijani government has instructed SOCAR to consider possibility of optimization of expenses of this capital-intensive project. At first cost of the project was over $14 billion (including the bank credit rates), but last June it increased up to $17 billion.

The new complex will include petrochemical enterprise with the capacity of 1.7 million tons of products, oil refinery with the capacity of primary oil refining of 10 million tons a year and gas refinery with the capacity of 10 billion cub.m. a year. The depth of oil refining at the enterprise will constitute about 95% and production of light oil products - 85%.

In the future it is planned to expand capacity of the gas refinery up to 15 million cub.m. a year. The new complex will be also comprised of a thermal power station with the capacity of 250 MWT.

The complex will be located 60 km south of Baku, close to the Sangachal terminal. The entire OGPC complex must be put into operation in December 2020.-0-