(MENAFN- Trend News Agency ) Baku, Azerbaijan, Sept.22
By Leman Zeynalova – Trend:
The STAR oil refinery, being constructed by Azerbaijan's state oil company SOCAR on Aliaga Peninsula in Turkey, is forecasted to be the only newbuild refinery in the Central and Eastern European (CEE) region over the next ten years, according to the outlook for Central & Eastern European oil, gas & fuel released by BMI Research (a unit of Fitch Group).
"We forecast only one newbuild refinery in the CEE region over the next ten years, with a number of projects instead focusing on expansions and upgrades," said the company. "SOCAR's Turkey Aegean Refinery (STAR) in Aliaga, will be the only greenfield facility."
Across the rest of Eastern Europe, Russia and the Caspian, the focus will be on modernization of existing facilities, according to the analysts.
"This will largely involve upgrading to Euro-V standard fuels in the Caspian countries, with Kazakhstan, Turkmenistan and Azerbaijan increasing production capacity for cleaner fuels," said the report.
The total cost of the project for building the STAR oil refinery exceeds $5 billion.
It is planned to launch production at the plant with capacity of 10 million tons per year in 2018.
The annual production of naphtha, used by Petkim as the main raw material, will amount to 1.66 million tons at the STAR refinery. Along with naphtha, the new oil refinery will produce 5.95 million tons of diesel fuel with ultra-low sulfur content, 500,000 tons of aviation kerosene, 500,000 tons of reformate, 630,000 tons of petroleum coke, 240,000 tons of liquefied gas, 415,000 tons of mixed xylene, 75,000 tons of olefin LPG and 145,000 tons of sulfur. The refinery will not produce petrol and fuel oil. It is planned to refine Azeri Light, Kerkuk and URALS oil at the plant.
Follow the author on Twitter:
Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.