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Gazprombank Group to supply SOCAR Polymer with nitrogen unit

17 June 2016 17:48 (UTC+04:00)
Gazprombank Group to supply SOCAR Polymer with nitrogen unit

By Fatma Babayeva

Public joint stock company Cryogenmash, which is a part of Gazprombank Group, will develop and deliver a nitrogen unit for the construction project of polypropylene and high density polyethylene plant SOCAR Polymer.

A relevant agreement was signed between Rovnag Abdullayev, President of Azerbaijan’s state owned oil company SOCAR and Andrey Akimov, Chairman of the Management Board of Gazprombank on the sidelines of the St. Petersburg International Economic Forum (SPIEF), reported Gazprombank on June 17.

The installation will meet SOCAR Polymer’s increasing demand for high-purity gaseous nitrogen during the realization of the given project.

SOCAR’s President noted that the conclusion of the agreement demonstrates strategic partnership and cooperation between Gazprombank Group and SOCAR.

Nitrogen production unit of Cryogenmash is based on the most cutting-edge technological and engineering solutions of the industry that allows reducing capex and maintains more economic regimes of operations compared to equipment of the leading foreign companies.

SOCAR Polymer project is implemented in Sumgait Chemical Industrial Park. The polypropylene production plant will be commissioned in the first quarter of 2018, whilst the polyethylene plant in the third quarter of the same year.

Upon completion of the project, 180,000 tons of polypropylene and 120,000 tons of high density polyethylene will be produced annually. By 2021, the total capacity could reach 570,000 tons of production.

The products of the SOCAR Polymer will be used for the production of high pressure gas, sewage and water pipes, packaging, textiles, stationery, automotive components, electronic and electrical appliances, medical industry, etc.

At the moment, Azerbaijan exports low-density polyethylene and imports high-density one. The main aim of the project is import substitution and increase of the country’s export potential.

As much as 30 percent of the production output of the SOCAR Polymer will be directed to the domestic market while the remaining 70 percent will be exported to Turkey and other European countries.

SOCAR’s Polymer investment project is expected to make $10-11 billion of revenues during the plant’s lifetime while the overall investment cost of the project will amount to $750 million (2014-2018).

At this project, SOCAR is partnering with the country’s leading industrial group- Pasha, Azersun and Gilan Holdings.

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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva

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