SOCAR keen on covering products deficit in Turkey

/By AzerNews/

By Amina Nazarli

Commissioning of a new STAR refinery of Azerbaijan’s state energy company SOCAR in Turkey in the first quarter of 2018 will make it possible to cover the current shortage of oil refined products in the country in the amount of $2.5 billion.

Kenan Yavuz, Chief Executive Officer of SOCAR Turkey Enerji A.S. made the remark during the awarding ceremony of the Best Oil and Gas Project of the Year in Europe, which was awarded by one of the most prestigious magazines called Infrastructure Journal (IJ) Global.

In addition, the first private refinery in Turkey of $3.29 billion worth, was also awarded the nomination “The best deal on financing among refineries.”

Seven export-credit institutions from six countries, 13 international commercial banks, as well as two development banks and one Turkish bank are participating in the project financing.

Some 10 million metric tons of crude oil processed at this facility will be used for the production of products that were previously imported to Turkey.

Earlier, SOCAR signed loan agreements totaling $3.29 billion with around 23 financial institutions in the Turkish city of Istanbul on June 6, as part of constructing a new Star refinery in Turkey. The loan package consists of the funds of export-import banks [Spain, Italy, Japan, US and the Republic of Korea], some 16 foreign trade and investment banks, as well as one local bank.

The annual naphtha production volume, used by Petkim as the main raw material, will hit 1.66 million metric tons at the Star refinery.

Along with naphtha, the new oil refinery will produce diesel fuel with ultra-low sulfur to the amount of 5.95 million metric tons, aviation kerosene - 500,000 metric tons, reformate - 500,000 metric tons, petroleum coke - 630,000 metric tons, liquefied gas - 240,000 metric tons, mixed xylene - 415,000 metric tons, olefin LPG - 75,000 metric tons and 145,000 metric tons of sulfur. The refinery will not produce petrol and fuel oil.

It is planned to refine Azeri Light, Kerkuk and Urals oil in the plant.