Azernews.Az

By Aynur Jafarova

The total investment of Azerbaijan in Turkey will reach $20 billion after the construction of the Trans-Anatolian (TANAP) gas pipeline.

The news was announced by SOCAR Vice-President of Economic Issues Suleyman Gasimov on September 24 at a regional conference titled "Economic growth and industrialization: the possibility of Azerbaijan and Turkey's experience."

The conference held in Baku was co-organized by the Azerbaijan-Turkey Business Association (ATIB) and the National Confederation of Entrepreneurs of Azerbaijan.

This was part of programs being held after the announcement of 2014 as the year of industry in Azerbaijan.

Gasimov also noted the construction of TANAP is of great importance for both Azerbaijan and Turkey.

TANAP, developed by SOCAR in collaboration with Turkish Botas and the Energy Company TPAO, will transport Shah Deniz's gas to the Turkish-Greek border from eastern Turkey.

The initial capacity of the pipeline will be 16 billion cubic meters of gas each year. TANAP will link up with Trans-Adriatic (TAP) pipeline on the Turkish-Greek border. About six billion cubic meters of gas will be delivered to Turkey and the rest to Europe. The costs of the TANAP project are estimated at $10 billion to $11 billion.

Gasimov went on to add that the volume of investments includes investment of SOCAR in the development of the petrochemical industry in Turkey.

"In particular, SOCAR is investing in the development of the Petkim Petrochemical Complex, in the construction of Star refinery, container terminal and a power plant, which is necessary for the further development of Petkim," he added.

Earlier President of SOCAR Turkey Enerji Kenan Yavuz told local media that Turkey's need for refineries is growing, and the construction of the Star refinery is one of the strategic goals of the company.

Star refinery, with an annual capacity of 10 million tons, will be capable of refining oil grades such as Azeri Light, Kirkuk, and Urals. The oil refinery is planned to be commissioned in 2018.

Some 16 billion cubic meters of gas will be produced in the Shah Deniz Stage 2 development and exported to energy markets. The figure will increase by one billion cubic meters each year.

Estimated at $5.5 billion, the refinery is mostly intended to create a resource base for the chemical company Petkim Holding. It will contribute significantly to the region's and country's economy by creating job opportunities and increasing competitiveness.

Currently, 60 percent share in the Star refinery is owned by Rafineri Holding A.S., and 40 percent - SOCAR.

Economic projects, jointly implemented by Azerbaijan and Turkey, are bringing these countries together and strengthening their cooperation. These two countries are connected by several important regional projects, including the Baku-Supsa, Baku-Tbilisi-Ceyhan oil pipelines, Baku-Tbilisi-Erzurum gas line, and TANAP.

Azerbaijan and Turkey's economic ties have reached a high level. SOCAR is one of the world's most well-established oil companies in Turkey since May 30, 2008. SOCAR is involved in a number of major investment projects in Turkey, including the construction of TANAP, Star refinery, and others.