SOCAR and BP explore creation of new petrochemicals joint venture in Turkey
BP and SOCAR Turkey announced that they have signed heads of agreement (HoA) to evaluate the creation of a joint venture that would build and operate a world-scale petrochemicals complex in Turkey.
The proposed facility, in Aliaga in western Turkey, would produce 1.25 million tonnes per annum (
PTA is used to manufacture polyesters, which have many uses including food and beverage containers, packaging materials, fabrics, films, and other consumer and industry applications.
Following the signing of the HoA, BP and SOCAR Turkey now expect to undertake design work for the facility, which would allow for the integration of feedstock supplies from the nearby new STAR refinery and Petkim petrochemicals complex, both owned by SOCAR Turkey.
“We entered the Turkish market in 2008 with the acquisition of Petkim and since then have realized giant projects such as the STAR refinery, TANAP, Petlim Container Terminal
Luis Sierra, CEO for BP’s global aromatics unit said: “If taken forward, this would be the largest integrated PTA, PX
BP and SOCAR expect to work towards a potential final investment decision in 2019, which could result in
BP’s latest proprietary PTA technology has significantly lower capital and operating costs when compared with other PTA technologies. It is more energy efficient, uses less water and produces less solid waste than similar technologies on the market.
BP and SOCAR are longstanding partners in a number of major oil and gas production and transportation projects in Azerbaijan, Turkey and the wider region, including the Shah Deniz 2 gas project in Azerbaijan that began production early this year, exporting natural gas to Turkey and beyond.
“This proposed new investment is a ‘win-win’ situation for both SOCAR and Turkey. It will not only increase our share in Turkey’s petrochemical markets, but it will also help to reduce Turkey’s imports of these products, hence reducing the foreign trade deficit. All of our projects in Turkey are planned with this goal in mind,” said SOCAR Turkey CEO Zaur Gahramanov.
“This potential major new direct investment would be our first equity investment in petrochemicals in Turkey, a country where BP has now been present for over 100 years. Turkey operates as a bridging country between the East and West, and between producers and consumers, and its fast-growing economy offers attractive investment opportunities,” said Mick Stump, president of BP Turkey.
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