MOSCOW (MRC) -- The ethylene-polyethylene plant, which is part of Azerkimya, a chemical sub-company of the State Oil Company of Azerbaijan (SOCAR), will construct a new turbine-generator installation, said Abc.
The relevant draft agreement has been signed today in Sumgait by SOCAR president Rovnag Abdullayev and president of Germany’s UNIPER (one of the structures of E.On, after the modernization of this German company) Klaus Schaeffer.
The installation is designed for production of additional electricity at the plant, and its construction is estimated at EUR26 million.
Abdullayev says that the initial investment of the German company will amount to EUR4 million.
The Bavarian Bank (BayernLB, the Bavarian State Bank) will also give a loan of EUR20 million for 15 years under 1% per annum. This is a very effective project. The ROI is 15%," the SOCAR president considers.
The plant has its own steam gas unit, meeting its energy demand.
As MRC informed earlier, SOCAR’s Polymer investment project, which is first of its nature and scale implemented for the last 40 years in Azerbaijan’s downstream oil and gas industry, will make USD10-11 billion of revenues during the plant’s lifetime. Some 30 percent of this sum will be the net profit of the company. In the meantime, cooperate taxes and property taxes worth USD800 million and value added tax worth USD700 million will be paid to the government.
SOCAR is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in domestic and international markets, as well as, supplying natural gas to industry and the public in Azerbaijan. Three production divisions, one oil refinery and one gas processing plant, a deep water platform fabrication yard, two trusts, one institution, and 23 subdivisions are operating as corporate entities under SOCAR.
MRC