Price and market trends: SOCAR awards $3.4bn contract for petchems refinery in Turkey

24 May 2013 09:16  [Source: ICB]

The State Oil Company of the ­Azerbaijan Republic (SOCAR) has awarded a $3.4bn (€2.65bn) engineering procurement and construction turnkey contract for the creation of a new refinery.

The winning a consortium will create the Star Refinery that will deliver feedstock to the planned Petkim petrochemical "supersite" in Turkey, SOCAR said on Monday. The consortium is led by Spain's Tecnicas Reunidas and also features Italy's Saipem, South Korea's GS Engineering & Construction and Japan's Itochu Corp, it added.

The 10m tonne/year Star Refinery would be required to produce 1.6m tonnes/year of reduced-sulphur naphtha as feedstock for the $10bn petrochemical complex that SOCAR subsidiary Petkim is constructing on a peninsula in Aliaga, near Izmir on western Turkey's Aegean coast, SOCAR said.


Other production capacities of the refinery, to be operational by mid-2017, would be 500,000 tonnes/year of jet fuel, 6m tonnes/year of diesel, 500,000 tonnes/year of petroleum coke and 300,000 tonnes/year of liquefied petroleum gas, it added.

Up to $5bn would be spent on creating the refinery, which would be Turkey's largest, SOCAR said.

The gradual construction of the petrochemical complex should across the next decade more than triple Petkim's petrochemical capacity to 10m tonnes, it added.

By: Will Conroy
+44 20 8652 3214

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