AZERBAIJAN: China shows interest in petrochemical complex
A number of Chinese companies, as well as China Exim Bank have shown interest in the project of Oil and Gas Processing and Petrochemical Complex in Azerbaijan, said SOCAR President Rovnag Abdullayev.
He said that works on the construction of the OGPC are underway.
"Works on the project continue, and we are holding negotiations. Previously, we were in talks with potential investors, led by the Japanese Mitsui, and a working group was established. But we found their proposals ineffective and stopped working with them. We recommended the Japanese companies to revise their proposals. If they offer us more precise proposals, we will consider them. Otherwise, we will work with those companies that will bring the best offers," he added.
The cost of construction of the OGPC is USD 17.1 billion (including interest on loans received during the construction period). Some 30 percent of the project's cost is planned to be financed with the authorized capital (nearly USD 5 billion), while 70 percent of the projects – with the borrowed capital (about USD 12 billion).
The total cost of the first phase of the OGPC project is estimated at USD 7 billion (including interest on loans - USD 8.45 billion). The payback period of the project will last four to five years.
The OGPC will be established at a place 60 kilometers from Baku. It will consist of three processing enterprises and a thermal power plant (TPP). The project will be completed in late 2022 - early 2023.
The OGPC construction project implementation will improve the product quality, enhance the export potential of the country and help protect the environment of the capital.
The annual capacity of the refinery as part of OGPC will be 8.5-9 million metric tons; the gas processing plant will be 12 billion cubic meters, petrochemical production will exceed 1 million metric tons (production of polyethylene will be 800,000 metric tons, and polypropylene production – 300,000 metric tons).
Source: Daily “AzerNews”, Baku; 14 Mar 2016
(Syed Rashid Ali, Karachi, Pakistan)
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