MOSCOW (MRC) -- The State Oil Company of Azerbaijan (SOCAR) is selecting the general contractor for the construction of a high-density polyethylene plant for SOCAR Polymer and invites German companies to take part in relevant tender procedures, said Fineko.abc.
At the Azerbaijani-German Business Forum in Baku SOCAR representative informed that the EPC contract (engineering, procurement & construction) on the SOCAR Polymer polypropylene plant is being fulfilled by Maire Tecnimont (Italy). As for the second plant, designed for production of high-density polyethylene, the EPC contract has not been awarded yet and the selection of candidates is underway.
The construction of the high density polyethylene plant is scheduled to start in 2016 and be completed by mid-2018.
Speech is of the enterprise with annual capacity of 120,000 tons of high density polyethylene.
SOCAR chemical sub-company Azerkimya’s representative Fazil Yusif has stated that construction of both plants within the framework of SOCAR Polymer will enable to increase the export potential of Azerbaijan.
SOCAR raised a loan from Russia’s Gazprombank in the amount of USD489 million for financing the construction of SOCAR Polymer plants for production of polypropylene and high density polyethylene.
The loan financing is given for 10 years and will cover 60% of the total project cost, and the remaining 40% will be financed by the SOCAR Polymer shareholders. The commissioning of the polypropylene plant with an annual capacity of 180,000 tons is scheduled for the end of 2017.
The polypropylene plant will be put into operation in 2018. Out of the total production of these enterprises, 30-40% will be directed to the domestic market (full coverage of needs), the rest will be exported.
As MRC informed earlier, SOCAR subsidiary Azerikimya Production Union (PU) has entered two units into operation at its ethylene and polyethylene (PE) plant in Sumgait, north of Baku. The company commissioned a 87,600-tonne/year (tpy) unit for the desulfurization of liquefied gas and a 120,000-tpy installation for the hydrogenation of butylene-butadiene fractions.
SOCAR Polymer was established by the State Oil Company of Azerbaijan, the equity capital of which is $100 million. Since late 2013 SOCAR has owned 51% shares of this company, while 49% are owned by Pasha Holding, Gilan Holding and Azersun Holding.
MRC