Baku, Azerbaijan, Apr. 10
By Maksim Tsurkov - Trend:
Most part of production of a new oil and gas processing and petrochemical complex (OGPC), which is under construction in Azerbaijan, will be directed to domestic consumption, the Head of Marketing and Logistics Division of SOCAR OGPC Ruslan Latifov said Apr. 9 at the 8th Caspian Oil and Gas Trading and Transportation Conference, held in Baku.
He said that the commissioning of a new refinery within the framework of OGPC project will satisfy the needs of the domestic market of Azerbaijan for 20 years.
"At the same time, the preliminary major export destinations of OGPC production are Turkey, Georgia and the EU," he said. "These directions were identified as a result of basic market research. A detailed study will be carried out in the future, which will allow to determine the directions more specifically."
Latifov went on to add that the cost-effectiveness of the project in the period of activity of the complex will be $225 billion.
The total cost of the first phase of the OGPC project is estimated at $7 billion (including interest on loans - $8.45 billion). It is planned to implement some 30 percent of the project with the equity, and the remaining part of the work will be carried out using borrowed capital. The payback period of the project will last four to five years.
The OGPC will be located 60 kilometers from Baku and will consist of three processing enterprises and a thermal power plant (TPP).
The OGPC construction project implementation will improve the product quality, enhance the export potential of the country and help protect the environment of the capital.
The annual capacity of the refinery as part of OGPC will be 8.5-9 million metric tons; the gas processing plant will be 12 billion cubic meters, petrochemical production will exceed 1 million metric tons (the power of the plant for the production of polyethylene will be 800,000 metric tons, rigs for polypropylene production - 300,000 metric tons).
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