TODAY.AZ / Business

SOCAR to increase carbamide production

11 November 2019 [10:00] - TODAY.AZ

By Azernews


By Rasana Gasimova

In recent years, Azerbaijan has been diversifying its economy in a bid to reduce its oil and gas dependency and increase the inflow of foreign currency. One of the steps taken in that direction is opening non-oil plants.

Carbamide plant owned by the State Oil Company of Azerbaijan Republic (SOCAR) will bring carbamide production to 650,000 tons by 2024.

According to government forecasts, 200,000 tons of urea will be produced in the country by the end of 2019. Over the period of 2020-2023 the output of these products will increase annually.

According to forecasts, urea production will amount to 500,000 tons in 2020, 620,000 tons in 2021, 640,000 tons in 2022, and 650,000 tons in 2023.

Thus, the urea production in Azerbaijan in 2023 will increase by 3.25 times compared to that in 2019.

The beginning of production at the SOCAR carbamide plant will eliminate the need for import of nitrogen fertilizers, thereby the country's foreign currency spending will decrease. By using 435 million cubic meters of natural gas as a raw material, the plant is capable of producing 650,000-660,000 tons of carbamide.

Moreover, 70 percent of the production is envisaged for export, which will enable the country to receive additional income worth up to $160 million annually. Carbamide fertilizers have the highest nitrogen content, therefore, they are considered the highest quality nitrogen fertilizer. The commissioning of this plant will play an important role in the development of agriculture in Azerbaijan.

The demand for carbamide is connected with its low cost, economical transportation, convenient use, which contributes to high yields in agriculture. This product is also widely used in the production of other chemicals and pharmaceutics.

Presently, SOCAR carbamide plant is the biggest project implemented in the country’s non-oil sector.

The South Korean company Samsung Engineering Co., Ltd., has provided engineering, procurement, construction and pre-commissioning services for the plant.

Opening up a very good prospect for Azerbaijan to increase the inflow of foreign currency into the country, commissioning of the SOCAR Carbamide Plant is an important step towards increasing Azerbaijan’s high-tech exports.


URL: http://www.today.az/news/business/188168.html

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