SOCAR and UNIPER create JV to generate power and steam

SOCAR and German UNIPER (former E.o.N) will create SOCAR-UNIPER joint venture (JV).

On May 25, 2016 the sides signed the documents to create JV at the 3^rd session of the Coordination Committee of SOCAR and UNIPER.

SOCAR will have 51% share in JV, while UNIPER – 49%.

The new JV will generate power and steam.

The sides have also signed the agreement on initial design of a new steam turbine generator on the Ethylene-polyethylene plant.

“Construction of the installation will increase energy efficiency of the steam generator complex on the Ethylene – Polyethylene plant and will help generate additional power,” said SOCAR’s specialists.

SOCAR President Rovnag Abdullayev told journalists that construction of a new steam turbine generator will cost 26 million Euro. “Of this amount 2 million Euro will be SOCAR’s equipment and 4 million Euro will be invested by UNIPER as an initial capital of JV SOCAR-UNIPER. The remaining 20 million EURO will be allotted by one of the Bavarian banks for the period of 15 years with the annual interest rate of 1%,” he added.

He said construction of the installation will take two years and steam generation will start in 2018.

“After construction of the new installation, efficiency of the steam generator will be 80%. Launching of the installation will allow reducing cost price of steam generation to 0.19 AZN per 1 cub.m., which is much lower, than in the republic,” said SOCAR President.—0—