03 March 2011 10:41 [Source: ICIS news]
(Recasts, making clear that construction work began in December 2009 in third paragraph)
MOSCOW (ICIS)--AzMeCo plans to build a new methanol production facility by the end of 2011, the ?xml:namespace>
The 560,000 tonne/year plant will be built in the Garadag district of capital city Baku, AzMeCo added.
The project will cost $320m (€230m) and production is due to start in early 2012, the company said. The plant was previously expected on stream by the end of 2010 after construction work began in December 2009.
The plant's capacity could eventually be expanded up to 720,000 tonnes/year, company CEO Nizami Piriyev said.
AzMeCo plans to export up to 90% of its methanol, he added.
AzMeCo eventually plans to build a new 300,000 tonne/year urea production facility at an estimated cost of $300m, said Piriyev.
In December 2009, AzMeCo and the European Bank for Reconstruction and Development (EBRD) signed a loan agreement for the methanol facility.
The $120m financing would come in two tranches - a $90m senior loan for up to nine years and $30m senior performance-linked financing to be fully repaid in the 10th year, according to the EBRD.
($1 = €0.72)
For more on methanol and urea visit ICIS chemical intelligence
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections