Azerbaijan’s Urea Plant Slips to 2018
Azerbaijan’s planned 650,000 metric tons/year urea plant is only 60% built and it is not now expected to be commissioned until 2018, instead of this year.
Natural gas will be used as a main raw material. Construction of the plant had been expected initially to be completed by the end of 2016 in the framework of the contract with South Korean Samsung Engineering company, but company representative Noh Eichul announced in Baku on April 12 that it would be operational by 2018, but gave no reason for the delay.
The plant's director, Khayal Jafarov also said that about two thirds would be exported, mostly to Turkey.
He said that some €320-330mn have already been spent, while the total costs of the project is estimated to stand at €910-920mn.
South Korean Eximbank has provided €150mn credit for the project so far, while a delegation from the bank is expected to visit Baku in coming weeks to negotiate further loans for the project. The project will start bringing profits in seven to eight years after its commissioning, Jafarov said.
Azerbaijan ups gas export, production
Azerbaijan exported 1.67bn m3 in the first two months of this year, about 5.5% more than the same period in last year, the state customs committee reported April 13.
On the other hand, the country's total gas production, including re-injected gas, stood at 4.888bn m3 in first two months of 2016, about 62mn m3 more than the same period in last year, according to statistics published by state oil producer Socar.
Azerbaijan produced more than 29bn m3 gas in 2015, of which around 9bn m3 went to Georgia and Turkey.
Azerbaijan desk