BP has signed a heads of agreement (HoA) with SOCAR Turkey to explore the possibility of forming a joint venture (JV) for building a petrochemicals complex in western Turkey.
To be located at SOCAR Turkey’s Private Industrial Zone in Aliaga, the proposed facility is expected to have a production capacity of 1.25 million tonnes per annum (tpa) of purified terephthalic acid (PTA), 840,000tpa paraxylene (PX) and 340,000tpa benzene.
PTA is primarily used in the production of polyesters, which find application in food and beverage containers, packaging materials, fabrics, films, and other consumer and industry segments.
BP and SOCAR Turkey will now collaborate on design work for the facility.
The development of the petrochemicals facility would enable the integration of feedstock supplies from two nearby units owned by SOCAR Turkey, namely the STAR refinery and the Petkim petrochemicals complex, and as a result is expected to reduce project costs significantly.
SOCAR Turkey board chairman Vagif Aliyev said: “The immediate proximity to the feedstock and infrastructure provided by SOCAR’s other facilities will contribute significantly to the competitive power of the new facility.”
A potential final investment decision on the project is anticipated to take place next year, with production start-up slated for 2023.
BP global aromatics unit CEO Luis Sierra said: “If taken forward, this would be the largest integrated PTA, PX and aromatics complex in the Western Hemisphere and BP’s first major new aromatics platform since our Zhuhai site in China opened nearly 20 years ago.
“The combination of BP’s leading proprietary technology and integration with SOCAR’s new refinery could create an outstanding platform to serve Turkey’s growing polyester packaging and textiles industry.”
BP will contribute its PTA technology to the joint venture for the petrochemicals complex.
The latest agreement between the companies builds on their existing relationship that involves several oil and gas projects in Azerbaijan, Turkey and the wider region, including the Shah Deniz 2 gas project in Azerbaijan.
The proposed petrochemicals complex will serve clients in polyester packaging and textiles industry.