Investors seek $4bn for Turkey petchem feedstock refinery

11 January 2012 14:55  [Source: ICIS news]

LONDON (ICIS)--Investors backing the construction of a refinery in Turkey that is to produce naphtha feedstock for the planned Petkim Peninsula petrochemical “supersite” are seeking up to $4bn in long-term loans to help finance the $5bn (€3.9bn) installation, the Socar Turcas Aegean Refinery joint venture said on Wednesday.

The joint venture, 81.5%-owned by the State Oil Company of Azerbaijan (SOCAR), had instructed Unicredit to explore potential loan arrangements with export-import credit insurance agencies of countries that are home to companies that may tender to build the refinery, it added.

Apart from the loans, the remaining cost of the refinery, to be known as the Star Refinery, would be financed by SOCAR, and the other joint venture partner, Turkish fuel retailer Turcas Petrol, with an equity injection of $1bn.

The groundbreaking ceremony for the 214,000 bbl/day Star Refinery was held last October in Aliaga, near Izmir, on western Turkey’s Aegean coast.

The refinery, scheduled to go into production in 2015, is to provide feedstock for an adjacent petrochemical supersite of Petkim, the sole major Turkish petrochemical producer, which is controlled by SOCAR.

The petrochemical complex, which taking into account the cost of the refinery will be built at a cost of approximately $10bn, is to be modelled on the Jurong Island industrial zone in Singapore, which includes a chemical manufacturing cluster.

Petkim intends to build up the complex to enable it to double its petrochemical output to 6.3m tonnes/year before 2018, and achieve 10m tonnes of products by 2023.

($1 = €0.78)

By: Will Conroy
+44 20 8652 3214

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