Construction of methanol plant in Azerbaijan to be completed by year-end

The construction of methanol plant in Azerbaijan will be completed by the end of this year.

Early next year the plant is scheduled to begin preparatory works for production, President of AzMeCo (Azerbaijan Methanol Company) Nizami Piriyev said.

According to him, in June 2012, the plant will start operating in full capacity: “The initial production capacity will amount to 560 thousand tons. After 6 months, this figure will be increased to 720 thousand tons”.

Piriyev noted that a special apparatus to prevent the emission of CO2 has been ordered from Germany: “The contract was signed this week. After about 7 months the installation will be ready, and in November 2012 will begin operating”.

Remind that, the European Bank for Reconstruction and Development and the company AzMeCo (Azerbaijan Methanol Company) signed a credit agreement worth 120 million dollars, as well as a letter of intent to build methanol plant in an area of 25 hectares in Garadagh and 5 plants intermediate for the production of gases. The total value of 6 plants is $ 1.1 billion. EBRD will allocate 33% of the funds, the rest - other banks.

The cost of methanol plant is 300 million dollars, the second plant - $ 400 million, the third - $ 250 million, the fourth - $ 30 million, the fifth - $ 100 million, the sixth - $ 30 million.

Note that, AzMeCo - operator of the plant construction, production capacity of 720 thousand tons of methanol per year, the daily capacity - up to 600 tons of ammonia and 1,150 tonnes of urea. At subsequent stages the plant will produce up to 450 tons of acetic acid, 500 tons of dimethyl ether, formaldehyde up to 80 tons and 40 tons in chalk. Along with EBRD, the project is financed also by the IBA, the Canadian EDC and the Black Sea Trade and Development Bank.

Financing from the EBRD will be carried out in two tranches: $ 90 million will be allocated for a period of 9 years, the remaining $ 30 million will be provided for 10 years.


/APA/