In The News: OGPC Project to Increase Azerbaijan’s Budget Revenues
Baku, Azerbaijan, Dec.2
Once commissioned, the Oil and Gas Processing and Petrochemical Complex (OGPC) will enable to significantly increase the revenues of Azerbaijan’s state budget, Gulmammad Javadov, first deputy energy minister of the country said.
He made the remarks during the 19th annual CIS Downstream Week on refining, petrochemicals, petrochemical refining and petrochemical industry in Baku Dec.2.
Javadov said Azerbaijan has great plans and tasks related to oil refining.
“Currently, modernization is underway at Baku Oil Refinery which will enable to increase the production volume,” he noted.
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Moreover, it is planned to construct a large complex – OGPC, which will consist of oil refining, gas processing and petrochemical segments, as well as a power unit, the deputy minister added.
“The project’s cost is estimated at $17 billion, according to the feasibility study. However, it will enable to significantly improve the quality of production and increase its volume,” Javadov said.
The OGPC will be located 60 kilometers from Baku and will consist of three processing enterprises and a thermal power plant.
Some 30 percent of the project’s cost is planned to be financed with the authorized capital (nearly $5 billion), while 70 percent of the projects – with the borrowed capital (about $12 billion).
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The total cost of the first phase of the OGPC project is estimated at $7 billion (including interest on loans – $8.45 billion). The payback period of the project will last four to five years.
The annual capacity of the refinery within OGPC will be 8.5-9 million tons, the gas processing plant – 12 billion cubic meters, petrochemical production – over 1 million tons (the capacity of the plant for producing polyethylene will be 800,000 tons, polypropylene production unit – 300,000 tons).
Written by By Maksim Tsurkov