Azernews.Az

By Gulgiz Dadashova

Azerbaijan's state energy company SOCAR intends to launch the construction of a new gas processing plant in the south of Baku in mid-2014.

The refinery will be built as part of the project on the construction of a new oil-gas processing and petrochemical complex (OGPC) worth $17 billion. The project envisions construction of a petrochemical enterprise with capacity of 1.7 million tons of finished products, an oil refinery with capacity of 10 million tons per year as well as a gas processing plant with capacity of 10 billion cubic meters per year.

A senior SOCAR official said detailed engineering of the plant is to be completed by late 2013. Two lines with capacity of 6 billion cubic meters each will be built at the plant.

A tender on the selection of contractors for the plant construction is due to be announced in about six months, so that the construction work would be launched by mid-2014.

Referring to the construction of two other enterprises that will be part of the OGPC, the official said that currently the possibility of coordination of existing enterprises, which can be modernized to bring them into compliance with the new complex, is being considered.

If expediency of such coordination between the existing and new businesses is confirmed, the cost of the OGPC may be reduced.

The official said that the work on the OGPC project is running on schedule, in accord with which the complex will be put into operation step-by-step during the period 2018-2021.

The OGPC, located 60 kilometers from the Azerbaijani capital Baku, is scheduled to be commissioned by the end of 2020. Payback of the facility is expected in 7-8 years.

The depth of oil processing at the plant will be about 95 percent, and the yield of light oil products - 85 percent.

In the long term, the gas processing plant's capacity will be increased to 15 billion cubic meters a year.

A thermal power plant with capacity of 250 megawatts will be built as part of the new complex as well.