Socar’s investments in Turkey to reach $20 billion
ISTANBUL - Hürriyet Daily News
Socar is currently the biggest foreign direct investor in Turkey and some $475 million has been recently transferred to Turkey from Azerbaijan to finance the forthcoming expenditures in the STAR Refinery, says Socar Turkey head Kenan Yavuz in his speech at the third Caspian Forum held in Istanbul. DAILY NEWS photo, Emrah GÜRELThe investment portfolio of Socar, Azerbaijan’s state-oil company, for Turkey will reach around $20 billion with the Trans-Anatolian gas pipeline (TANAP), Socar Turkey head Kenan Yavuz said yesterday, noting that this was the official figure, during a press meeting at the 3rd Caspian Forum in Istanbul.
“The new project, TANAP, with the leadership of Turkey and Azerbaijan will enable the two countries to meet energy resources and consumption points,” Yavuz said at the event organized by Istanbul-based think tank Caspian Strategy Institute (HASEN). He added that the TANAP would transform Turkey into an important energy transfer center.
Yavuz added that Socar had an investment portfolio for Turkey of between $17 billion and $20 billion in the 2008-2018 period. As Socar’s Refinery Petrochemistry-Energy-Logistic Integration investments worth $9.5 billion in Petkim Peninsula in İzmir, TANAP will increase this amount to around $20 billion, he said. The TANAP is expected to cost between $8 billion and $10 billion, said Yavuz, noting that this was not the official figure.
Socar’s investments in petrochemicals, energy and logistics will also enable Turkey and Azerbaijan to produce oil and natural gas derivative intermediate goods, he added. Yavuz recalled that Socar was currently the biggest foreign direct investor in Turkey. Some $475 million was recently transferred to Turkey from Azerbaijan to finance the forthcoming expenditures in the STAR Refinery, the most important part of integration investments in the Petkim Peninsula. This is in addition to some $350 million worth of previous money transfers, which is the largest money transfer to have been spent as foreign direct investment in Turkey. The STAR Refinery is slated to come into operation by the middle of 2017, Yavuz added.
Azeri gas exports to hit 35 bln cubic meters in 2025
Azerbaijan’s natural gas exports will increase to over 35 billion cubic meters a year by the year 2025, according to Efgan Niftiyev, Strategy and Policy Coordinator at HASEN.
Speaking on the sidelines of the Caspian Forum in Istanbul yesterday, Niftiyev said 6 billion cubic meters of gas, to be produced at Shah Deniz Phase II, will be carried to Turkey, while 10 billion cubic meters will be carried to Europe. When newly-discovered resources such as Alov, Asiman and Babek are added, the total export capacity of Azerbaijan will reach 35 billion cubic meters, he added.
“The TANAP covers the majority of the Azeri gas to be exported to Turkey and Europe, but exports are not limited to the TANAP,” Niftiyev said. “In addition, the TANAP may also carry gas from northern Iraq and the Eastern Mediterranean.”
The TANAP, followed by TAP, is the most feasible route to carry the Azeri gas to Europe, he said, adding that the selection was made based only on the commercial criteria.
Niftiyev said the Caspian Forum aimed at contributing in the integration process in the Caspian region through transportation and energy issues, and efforts would continue in the coming years.