Written on 07.01.2015 - Industry
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AZERBAIJAN: Gazprombank agrees to allocate loan for Socar's Sumgayit polymer project

The State Oil Co. of Azerbaijan (Socar) and Gazprombank have signed a Collection of Basic Requirements in which Gazprombank has agreed to allocate a loan for Socar's polymer project to be built at subsidiary Azerkimya's Sumgayit complex in Azerbaijan.

Under the agreement, Gazprombank will loan Socar $420-million for the construction of a new 200,000-t/y polypropylene (PP) plant at Sumgayit that will increase PP capacity to 320,000 t/y, as well as an expansion of the site's polyethylene (PE) capacity to 320,000 t/y from 200,000 t/y.

The PE plant will be commissioned following the startup of the PP facility, which is expected by the end of 2016.

The loan was allocated to Socar for 10 years without demand for guarantees. Gazprombank also opened a $2-billion credit limit for Socar.

Socar has established Socar Polymer LLC as a new enterprise responsible for the PP and PE expansions.

Source: Weekly "PetroChemical News", Durham, NC, USA; 22 Dec 2014
(Syed Rashid Ali, Karachi, Pakistan)