Azernews.Az

By Nazrin Gadimova

Azerbaijani state energy company SOCAR may begin construction of a carbamide plant in Georgia in late 2014, a SOCAR source said on October 4.

According to the source, currently preparations for the construction of the plant are underway in Georgia and then coordinating work will start with banks.

Moreover, SOCAR intends to construct a carbamide plant in Sumgayit, some 30 km north of the Azerbaijani capital Baku.

"This project is still relevant and work is being held actively in its framework," the source said. "The plant in Georgia will be similar to the one which is to be built in Azerbaijan."

The construction of the carbamide plant in Azerbaijan will be completed in 2016. The general contractor of the construction project is South Korea's Samsung Engineering Co. Ltd.

About 40-45 percent of the plant's goods are expected to be sold on the domestic market and this will fully meet the demand for nitrogen fertilizers in the country. The capacity of the new plant, which will be located in the chemicals producer Azerkimya's industrial site in Sumgayit, will be about 600,000 tons of carbamide per year.

Azerbaijan's state budget will allocate around 500 million euros (excluding taxes) for the construction of the plant.

SOCAR also intends to open six or seven gas stations in Georgia under its own brand by the end of this year. According to the source, currently, there are about 110 gas stations in Georgia under SOCAR's brand, and their number will be 116-117 by the year-end.

SOCAR Georgia Petroleum Ltd is the single largest importer of petrol and diesel fuel in Georgia. It imports up to 35,000 tons of oil products from Azerbaijan each month. The company is expanding rapidly by increasing its network of petrol stations around the country. SGP's strategic development plan includes construction of petroleum storage depots using modern technologies and develop its network of petrol stations up to 120.