SOCAR completes integration of STAR refinery, Petkim
Turkish subsidiary of Azerbaijan’s state oil company SOCAR has completed the integration of STAR refinery and Petkim petrochemical complex, Trend reports citing SOCAR Turkey Energy.
“By selling 1.303 tons of naphtha produced at STAR refinery to Petkim, SOCAR Turkey Energy completed the integration of the refinery and the petrochemical complex. This sale has been an important step towards the integration,” said the company.
Star Oil Refinery that is the first Turkey-specific Industrial Zone opened in October 2018.
STAR Oil Refinery, which was built to improve Petkim's value chain, will make a significant contribution to the diversification of the company's pro vice assets as a project that holds an important place in the new strategic development course of SOCAR.
The plant will produce 5 million tons of diesel fuel, 1.5 million tons of naphtha, 1.6 million tons of aircraft fuel, 1 million tons of xylene / reformat, liquefied petroleum gas (LPG), oil coke and sulfur per year.
STAR is the biggest investment made by private sector in Turkey. The total investment of the project is $ 6.3 billion, of which 90 percent has been already invested. By the end of 2021, Star's total capacity will be increased. In the end, the investment will total $7 billion.
STAR Oil Refinery will process 34,000 cubic meters of crude oil daily. SOCAR Turkey Energy A.S. earlier reported that STAR will reduce Turkey’s annual deficit by about $1.5 billion. STAR refinery will meet more than 25 percent of the processed oil products need of Turkey upon its startup. Certified with the first investment incentive granted by Turkey, STAR Refinery will eventually reduce the foreign-dependency of the country.
Azerbaijani state company SOCAR invests in Turkey through its subsidiary SOCAR Turkey Energy, which is one of the largest investors in Turkish economy, has started operating under Petkim in 2008.
Petkim Petrochemical complex, a subsidiary of SOCAR in Turkey, produces plastic packages, fabrics, detergents, and is the sole Turkish manufacturer of such products, a quarter of which is exported. The complex includes 14 factories producing 20 different types of products.
Recently, SOCAR has acquired EWE Turkey Holding, owned by the German energy company EWE AG. Earlier, EWE AG told Trend that the decision on the possible sale of its assets in Turkey is related to the optimization of the company's activity.
SOCAR will start construction of a new petrochemical complex in Turkey in 2019.The enterprise is expected to be commissioned at the end of 2022.
The start of construction of a new petrochemical complex SOCAR in Turkey is scheduled for the second half of 2019. The enterprise is expected to be commissioned at the end of 2022.
The facility would produce 1.25 million tons per annum (tpa) of purified terephthalic acid (PTA), 840,000 tpa paraxylene (PX) and 340,000 tpa benzene.
The investment cost of the joint project will be approximately $1.5-2 billion.
SOCAR Turkey also plans to increase energy production at the Petkim wind power plant as well as expand network of filling stations in Turkey.
Recently, Turkish Gubre Fabrikalari TAS (Gubretas) company, engaged in production and marketing of chemical fertilizers and SOCAR Turkey Energy, and SOCAR Turkey Energy signed a letter of intent to create a joint venture with a 50 percent share each to import carbamide from SOCAR petrochemical plants and from other manufacturers in the neighboring geography and sell this carbamide in Turkey’s domestic market and in foreign markets.
So far, SOCAR Turkey has invested over $14 billion in the Turkish economy. Meanwhile, 5,000 people work in the company, while the export potential reaches $3 billion. SOCAR Turkey’s market value reaches $11 billion.
Investments of the SOCAR in Turkey will reach $19.5 billion in the future.
SOCAR Turkey Energy continues to boost its economy and industry with strategic investments, moving forward rapidly every year to become Turkey's largest industry group.