BAKU

Azerbaijan’s state energy firm SOCAR’s subsidiary, SOCAR Methanol, resumed export of methanol in June after a 5-month hiatus due to scheduled maintenance at a methanol plant in the capital Baku, an informed source in SOCAR told the Tribune.

The first batch of 3,500 tonnes of methanol was exported to Turkey from Georgia’s Black Sea port of Kulevi, which is managed by SOCAR.

Turkey buys about half of the methanol produced in Azerbaijan. Other buyers include Egypt, Italy, the Netherlands, and other countries in Europe and Asia. SOCAR Methanol produces methyl alcohol of maximum purity of 99.99 percent. Azerbaijan ranks second among former Soviet republics after Russia, in terms of methanol production,

The country produces about 360,000 tonnes of methanol per year and exports 99 percent of the output. The plant plans to increase production to 540,000-600,000 tonnes by 2025.

Azerbaijan is developing its petrochemical sector to reduce dependence on the oil and gas industry. Oil and gas still account for about 95 percent of the country’s exports and 75 percent of government revenue, with the hydrocarbon sector also generating about 40 percent of the country’s economic activity, making the Caspian Sea republic particularly vulnerable to a downturn in gas and crude prices.

In 2019, the country completed the construction of three new petrochemical plants producing polypropylene, carbamide and high-density polyethylene. It also produces other petrochemicals.

New enterprises have allowed the country to satisfy domestic petrochemicals demand while boosting exports. In the first quarter of 2021, Azerbaijan increased exports of polyethylene by 71 percent year-on-year in nominal terms to $21.7 million.

In 2008, SOCAR bought the Petkim petrochemical complex in the neighbouring country for $2.2 billion. Petkim is now 51 percent-owned by SOCAR Turkey Enerji A.S., which in turn is 87 percent-owned by SOCAR and 13 percent by Goldman Sachs International.

The country plans to make a decision over the construction of a new petrochemical complex in Turkey in 2022.

Azerbaijan also produces 650,000 tonnes of carbamide per year and plans to construct a second carbamide plant with Turkey’s Tekfen in a move to boost the South Caucasus country’s potential as a petrochemicals exporter.