Baku, Azerbaijan, Dec.26
By Emil Ismayilov - Trend:
The State Oil Company of Azerbaijan (SOCAR) has appealed to the Central Bank of Azerbaijan (CBA) to attract a loan for construction of a new gas processing plant and an enterprise for production of gas and chemical products, SOCAR Vice President for economic issues Suleyman Gasimov said.
He made the remarks at a press conference on Dec.25.
Gasimov said 30 percent (around $2.1 billion) of the total cost of the project should be covered with the funds of SOCAR.
"SOCAR intends to seek funds for the construction of these two enterprises in stages and part of these funds can be provided with the CBA loans," he said without specifying the exact amount of the loan.
The gas processing plant is being constructed as part of the new oil and gas processing and petrochemical complex (OGPC) and will be commissioned in early 2020. The raw material for the gas processing plant will be the gas produced from Azeri-Chirag-Guneshli, Umid and other fields that are developed by SOCAR.
OGPC will be located in 60 kilometers from Baku and consist of three processing enterprises and a thermal power plant.
The implementation of the OGPC project will allow to improve the quality of products, strengthen the country's export potential and contribute to the environmental protection in the capital.
The total cost of the project's first phase is estimated at $7 billion (including the interest on loans - $8.45 billion).
The payback period of the project will cover 4-5 years. Some 30 percent of the project will be implemented with the state funds (the funds will be allocated in parts during five years) and 70 percent - with the borrowed funds.
Touching upon the liquidation of Azneftyag oil refinery and its merger with Baku Oil Refinery named after Heydar Aliyev, SOCAR Vice President for refining David Mammadov said that this will not affect the quality and the volume of production of petroleum products at the refinery.
The operation of Azneftyag refinery can be suspended in 2018-2019 after ensuring the necessary production at the Baku oil refinery named after Heydar Aliyev.
Currently, petroleum products are produced at two Baku refineries with a total capacity of 16 million metric tons of oil per year. Moreover, SOCAR owns Azerkimya production association (producer of chemical product) and a gas processing plant.
Edited by SI
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