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Azerbaijan's high-density polypropylene and polyethylene output expected to

start in 2016
25 SEPTEMBER 2013 [18:45] - TODAY.AZ

By AzerNews
Production of polypropylene and polyethylene of high density in Sumgayit -- an industrial
city located close to the Azerbaijani capital Baku -- will be launched in 2016, a source at the
state energy company SOCAR told Trend news agency.
According to the source, the construction of two new plants for production of such
polypropylene and polyethylene will be completed in 2015.
In 2012 SOCAR signed a contract on the construction of a plant producing high-density
polypropylene and polyethylene with annual capacity of 200,000 and 100,000 tons
respectively. The construction of these facilities is planned in the Sumgayit Chemical
Technology Park.
The SOCAR Polimer enterprise with authorized capital of $51 million has been
established for the implementation of these projects.
The state energy company plans to keep its share in the project at 51 percent and the rest
will be offered to privately owned companies.
According to the source, work is currently underway to attract shareholders, and the process
of financing the construction of new facilities will be carried out on the basis of participating
SOCAR Vice President Suleyman Gasimov said earlier that SOCAR intends to attract up to
$200 million from local banks as part of the effort to launch polymer production in
Azerbaijan. The total volume of anticipated investment in SOCAR Polimer amounts to $500
According to him, nearly 30 percent of investments in the project will be attracted from
shareholders and a large part is to be drawn from banks and through issuing long-term
nominal bonds which will be placed in the domestic market.
The source said SOCAR will continue the modernization process of Azerkimya chemicals
producer in 2014-2016. A slight modernization is to be carried out at Azerkimya in 2014,
2015 and in 2016 in order to facilitate processing, it said.

Currently, SOCAR continues work on the construction of a new oil, gas and petrochemical
complex (OGPC) in Azerbaijan. The construction of new facilities involves the dismantling of
the current production enterprises, in particular, oil refineries.
According to the source, Azerkimya will work as long as the Heydar Aliyev Oil Refinery is
operating; raw materials from there are delivered to the production facilities of Azerkimya.
However, a more specific decision to halt the Production Association's operation can be
expected only with a situation which will emerge with the commissioning of the new
processing complex.
The Heydar Aliyev Oil Refinery is to stop working after the commissioning of a refinery in the
new complex, which is planned to become fully operational in 2020-2021.
The OGPC will be put into operation by stages between 2018 and 2021.
The construction of a new complex worth $17 billion including interest on bank loans entails
the construction of a petrochemical enterprise with a capacity of 1.7 million tons of finished
products, an oil refinery with a capacity of 10 million tons per year as well as a gas
processing plant with a capacity of 10 billion cubic meters per year. The depth of oil
processing at the plant will be about 95 percent and the yield of light oil products 85
A thermal power plant with a capacity of 250 megawatts will be built as part of the new
The complex will be located 60 kilometers from Baku. Commissioning of the entire OGPC
complex is scheduled for the end of 2020.

million metric tons after the modernization, he said. These indices will meet the
needs of the country in the fuel at least until the end of the 2020s."
As a result of commissioning of the new catalytic cracking units, the production
capacity of the plant will increase from 6 to 7.5 million metric tons.
"Some 75 percent of the gasoline produced at the plant will be supplied to the local
market, while a quarter of it will be exported, Gahramanov said. As for diesel and
aviation fuel, the domestic market will be provided with 60 percent of the output,
while 40 percent will be exported. Finally, 30 percent of the output of SOCAR
Polymer project will be supplied to the domestic market, while 70 percent will be
exported to Georgia, Turkey and the CIS countries."
Azerbaijan's energy giant SOCAR, which is keen on expanding operations in the
retail oil products market abroad is involved in exploring oil and gas fields,
producing, processing, and transporting oil, gas, and gas condensate, marketing
petroleum and petrochemical products in the domestic and international markets,
and supplying natural gas to industry and the public in Azerbaijan.

In 2015, SOCAR optimized the structure of its oil refining facilities and established
one large enterprise on the basis of two oil refineries.