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SOCAR Carbamide Plant’s production volumes to reach 650,000 tons

28 November 2019 18:25 (UTC+04:00)
SOCAR Carbamide Plant’s production volumes to reach 650,000 tons

By Rasana Gasimova

The Carbamide Plant belonging to the State Oil Company of Azerbaijan Republic (SOCAR), will produce up to 650,000 tons of urea in 2020, Carbamide Plant's Director Khayal Jafarov has told local media.

“Before the end of this year, we expect to produce another 50,000 tons of urea. In 2020, production volumes are planned at the level of 600,000-650,000 tons, and export volumes – at 500,000-550,000. Moreover, the Turkish market is expected to account for 75-80 percent of the overall exports,” Jafarov said on the sidelines of an international conference on the role of the Paris Agreement in climate and environmental change, held in Baku on November 27.

The plant’s average monthly urea production is about 50,000 tons, which is about 2,000 tons per day, Jafarov stressed.

He also said that as of November 1, 2019, the plant produced about 125,000-130,000 tons of urea, of which about 15,000 tons were sold on the domestic market, 30,000 tons were stored in the warehouse of the enterprise, and the rest was exported.

Furthermore, he said that the plant has begun repaying its loan, adding that in 2019, the amount of funds paid will reach €66 million euros.

“The first tranche in the amount of 33 million euros was concluded by the enterprise in June 2019, the second tranche in the amount of about 30 million euros is planned to be held in the second half of December 2019. Thus, by the end of 2019, the company will have paid a loan obligation in the amount of 66 million euros,” Jafarov said.

He noted that the balance of loan obligations will be approximately 460 million euros in 2020. The payback period of the plant will extend to up to 10 years. The prices peak level on the urea’s world markets is observed in the summer and winter before sowing.

"At the moment, the urea market has dropped. Now we are waiting for the increase in the urea’s world prices in January-February of next year," he stressed.

Jafarov also said that in the domestic market 15-20 companies with the appropriate licenses buy the plant's products.

“In the domestic market, we are open to everyone. Anyone who has the appropriate license can purchase our products, “he added.

Carbamide fertilizers containing the highest nitrogen content are considered to be the highest quality nitrogen fertilizer. Thus, the plant greatly contributes to the development of agriculture in Azerbaijan.

The domestic products remain to be of high demand among farmers for their low cost, economical transportation, and convenient use, thus benefiting high yields in agriculture. This product is also widely used in the production of other chemicals and pharmaceutics.

SOCAR carbamide plant is a huge project implemented in the non-oil sector of economy.

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

SOCAR Carbamide is ambitious to expand oil-rich Azerbaijan’s high-tech export and opens up very good prospect for diversifying national economy.

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