Azernews.Az

By Nigar Abbasova

The construction of SOCAR’s carbamide plant in Sumgait city is completed by almost 40 percent

Khayal Jafarov, director of the plant, said that some 96 percent of equipment which was provided by the leading companies of Asia, Europe, and America has been delivered to Azerbaijan.

“We are currently engaged in placing and installation of the equipment in the territory of the plant," he added. "Laying of underground communication lines and other pipelines was also completed. Installation of metal and other surface constructions are currently underway.”

The construction is expected to accomplish by late 2017. The plant will be handed to SOCAR after passing necessary test trials. The plant will produce 1,200 tons of ammonium per day, while natural gas will be used as a raw material. Ammonium will be further used for the production of carbamide, the volume of which is expected to amount to 2,000 tons per day (some 700,000 tons per year). Jafarov said that the volume will fully meet the demand of the domestic market (which is about 150,000-200,000 tons per year), while surplus will be sold on the international markets. He underlined that Turkey is considered to be one of the main foreign market, as the demand for carbamide is high in the country.

Jafarov also said that Azerbaijan has managed to reduce the construction cost of the plant by reducing it to €700-750 million ($786 - $842 million) through optimization of expenditures. The cost was previously estimated at the level of €900-920 million ($1.010 – $1.033 billion).

“The cost is currently estimated at €700-750 million, including taxes. This is the sum, of investments, which is required for the launch of production at the plant,” he said.

Jafarov said that certain engineering decisions lead to the reduction of the cost, underlining that performance figures will not be anyhow affected by the reduction.

With regards to attracting investment for the project he said that talks are planned to be held with the South Korea’s Export-Import Bank. Moreover, talks are currently underway with Deutsche Bank and other authoritative European banks.

SOCAR expects to make high benefits and productivity from the plant, which is expected to generate profit within seven or eight years after its commissioning. The plant, which will consist of sectors that produce ammonia, liquid and granular carbamide is expected to release its first products in the first quarter of 2018. The launch of the plant will provide new working places for some 2, 000 people in Azerbaijan.

The main construction contractor is the Korean Samsung Engineering Company, while other licensors include Dutch Stamicarbon and Danish Haldor Topsoe. Finnish Neste Jacobs Oy will act as a management consultant for the project.

A ground-breaking ceremony was held in December 2011, which was followed by tender process that received bids for the implementation of construction works. SOCAR signed design, procurement and construction contract with Samsung Engineering Co. Ltd in March 2013.

---

Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz