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Petkim to Invest $8 Billion on Refinery, Port, Power Plant

Petkim Petrokimya Holding AS (PETKM), Turkey’s biggest petrochemicals maker, plans to invest as much as $8 billion by 2016 on projects including a refinery, a new port and power plants.

The company, owned by the State Oil Co. of Azerbaijan or Socar, will build two coal-fired plants with capacities of 600 megawatts and 200 megawatts, Kenan Yavuz, chief executive officer of Socar’s Turkish unit, told reporters at the company’s plant in Izmir, Western Turkey. The power plants will cost a total of $1.2 billion, and help cut the company’s energy costs by 40 percent, he said.

Petkim will start building a $400 million port in November and complete it within two years, Yavuz said. Together with a $5 billion refinery that the company is building, the port will help cut raw material costs by $75 million a year, he said.

Socar’s Turkey unit will start imports of 1.2 billion cubic meters a year of natural gas from Azerbaijan in 2013, Yavuz said. The company will sell as much as 500 million cubic meters of that gas to Petkim, and the rest to other Turkish buyers, the chief executive said.

To contact the reporter on this story: Ercan Ersoy in Izmir at eersoy@bloomberg.net.

To contact the editor responsible for this story: Ben Holland at Bholland1@bloomberg.net

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