29 July 2013 13:26 [Source: ICIS news]
LONDON (ICIS)--The State Oil Company of the Azerbaijan Republic (SOCAR) is to include an 80,000 tonne/year butadiene (BD) plant in its planned $17.1bn (€12.8bn) Oil and Gas Processing and Petrochemical Complex (OGPC), the company said on Monday.
In all SOCAR expects the petrochemical side of OGPC to produce 1.7m tonnes/year of petrochemical products, primarily earmarked for export to Turkey, other Asian markets and Europe, it added.
However, SOCAR said it believed ethane-fuelled OGPC could also make some inroads in cutting Azerbaijan's reliance on petrochemical imports, which, the company said, were up 8.8% year on year in 2012 to 4.8m tonnes.
Other installations confirmed for OGPC, to be located just outside the Azeri capital of Baku, are polyethylene (PE) and polypropylene (PP) plants with capacities of 670,000 tonnes/year and 550,000 tonnes/year, respectively.
The first production at the complex is expected in 2017-2018, with full commissioning of the planned production lines targeted for 2021, state-controlled SOCAR said.
Approximately 70% of the capital expenditure required to realise OGPC would be sourced from loan capital, which SOCAR expects to repay within seven to eight years of full operation at the complex, the company added.
($1 = €0.75)
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