Petrochemicals in Azerbaijan Can Oust Oil and Gas

The petrochemical complex in Azerbaijan is developing extensive plane, and the world community has no clear idea on what range of buyers will be calculated this production.

   According to the scale, the ambition of the country is enviable, writes Laura Wood of Dublin Center financial and market research portal Yahoo.com (http://finance.yahoo.com/news/research-markets-azerbaijan-petrochemicals-report-115700425.html). In the medium term (to end 2018), the expansion of the sector will be associated with the manufacturer of methanol Methanol Company (AzMeCo), which plans to export about 90% of production at the end of construction of the plant for $ 360 million,

   Recall, the average stock exchange price of the products in the light of the world deficit rose to a record high - $ 650 per ton, and the contract price (prepaid) to $ 442.

  The company of 560 thousand tons per year of methanol production will increase to 720 tons. Other share of production will come from private companies, designed to support the domestic market is not the oil industry. This includes the production of 165 thousand tons of acetic acid (at the exchange of $ 300 per ton of food acid, and about $160 - for synthetic), 18 tons of formaldehyde ($ 850 a ton) and 15 tons of melamine ($ 4,670 a ton).

   By the way, AzMeCo plans fertilizer in Garadagh, with production capacity of 255 thousand tons of ammonia ($ 700 per tonne) and 500,000 tons of urea ($ 300) a year. Given the fact that the world market petrochemical products is stable due to strong demand in the West, as well as the continuous growth of customers in the South Asian region, the Azerbaijani leadership idea, at first glance, not bad - the newspaper writes.

   The State Oil Company of Azerbaijan did not stay on the sidelines, the planned construction of two plants to produce 700 thousand tons of urea (a total of 1.4 million tons). One of them will be built in Azerbaijan, the other - in Georgia. The construction should begin in mid-2013 and be completed by the end of 2016. According to a statement by Rovnag Abdullayev, the aim is to raise the level of fertilizer exports to reach 1 million tons per year.

   According to analysts, the level of cleanliness and attractiveness of the investment climate in Azerbaijan is not in the best account and on respect for private property it is at the last place in Europe. Therefore, given the orientation of the economy referred to the oil and gas projects up until full implementation in the eyes of global consumers are not taken seriously and to influence market conditions.

   However, there are advantages. In comparison with the results of the 2nd fiscal quarter Azerbaijan Petrochemicals by reducing risks scored 2 points, and collected 34.7 points in the European rankings. This is only 4.6 points less than the nearest competitor - Bulgaria. Assessment of the capacity of the country in general and the company Azerkimya, in particular, can grow if the integration plans petrochemical complex in the economy will be successful, but it is hardly feasible until 2018.

   The report also devoted attention to the missed opportunities. In the authors’ view, Azerbaijan, which has a considerable oil and gas potential, could come up with the current draft of the petrochemical industry earlier. However, largely because of the poor business environment, there were no foreign investors. Implementation of these projects is made possible now, when money appeared at the local government. Fortunately, there are signs that things are changing for the better, as the government has made concerted efforts to restructure the industry, according to the newspaper. -17D-