Dismissing turmoil, Petkim moves forward
Güncelleme Tarihi:
by Mete Tamer Omur - Referans
Oluşturulma Tarihi: Mart 25, 2009 00:00
İZMİR - A climate of global uncertainty cannot stop Petkim, Turkey’s petrochemicals giant, from aiming high, according to the general manager of the recently-privatized company. Petkim has many exciting projects and is waiting for approval from the Energy Market Regulatory Agency to realize them, says Kenan Yavuz, the general manager
Petkim, a petrochemicals producer owned by Turkey’s Turcas and Azerbaijan’s Socar, is now involved in giant projects following its privatization last year.
Petkim has been preparing for its most exciting projects of the last 40 years, said Kenan Yavuz, general manager of Petkim. He requested for the bureaucratic process of its projects to be finalized quickly to move forward with the projects as soon as possible. Among the projects is a refinery worth $3 billion, which will create jobs for thousands of people.
Petkim’s owners Socar and Turcas applied to the Energy Market Regulatory Agency, or EPDK, to obtain a license to establish a new refinery right after the privatization procedure was concluded, said Yavuz. The decision makers in Turkey should also lend their full support to this investment, he said.
"We expect to see the positive results of our bureaucratic applications rapidly. There are two options. Either, my partners will establish a refinery here, and Petkim will grow with the raw material I acquire from that refinery, or I will disappear," he said.
"If a certain scale is not reached in order to keep up with the competition, one is bound to perish. I have to establish this refinery in order to secure competitive advantage. We will grow with this refinery. We will either be supported by all in our conquest, or Turkey will have to forget all about the petrochemicals industry," he said.
Meeting the demand
Socar-Turcas Joint Venture took over control of Petkim for 49 years, said Yavuz. Petkim currently meets its raw material demand via imports and a new refinery would remove the company’s dependency abroad, he said. "We are awaiting EPDK’s approval. We are conducting all the studies necessary to obtain the Environmental Impact Assessment, or EIA, document. Our engineering studies for feasibility and configurations are also ongoing."
A few years ago, Petkim used to obtain all of its naphta, a flammable liquid, from Tüpraş; however, as the firm halted production, Petkim has begun to import almost all of its naphta supply, according to Yavuz. "This project will enable us to meet Petkim’s raw material demand as well as producing chemicals to meet Turkey’s needs."
"Petkim, with its port, dam, water, electricity and steam, has a great infrastructure. That is a significant advantage. Our partners envisage an investment starting from at least $3 billion for this [refinery] project."
Petkim aims to meet 40 percent of the domestic market’s demand by 2018, Yavuz said. The refinery construction and some other investments, which will be implemented through 2018, will enable employment opportunities for at least 10,000 people, he said. Once established, the factories will also require hiring at least 1,500 people to operate, he said.
"When everyone is concerned over uncertainties, we can speak about 2018. The crisis is temporary, and we have long-term strategic targets. In line with these targets, we have the projection to connect the Caspian and Aegean. The plan also includes the Baku-Tbilisi-Ceyhan pipeline, railway connection and Shah Deniz gas field project," he said.
Within the framework of the plan, the oil that reaches Ceyhan via the pipeline will be loaded to ships and then transferred to Petkim. "It will be processed here and reach domestic market as well as the world markets, which is why I deem this the most exciting project of the last 40 years," said Yavuz.
As the long privatization process of Petkim finalized, the development helped provide jobs for 200 people, he said. Although there was no need for new employees at the time, Petkim hired new young technicians, who could be trained and put to use in the company’s future investments.
Petkim has been preparing for its most exciting projects of the last 40 years, said Kenan Yavuz, general manager of Petkim. He requested for the bureaucratic process of its projects to be finalized quickly to move forward with the projects as soon as possible. Among the projects is a refinery worth $3 billion, which will create jobs for thousands of people.
Petkim’s owners Socar and Turcas applied to the Energy Market Regulatory Agency, or EPDK, to obtain a license to establish a new refinery right after the privatization procedure was concluded, said Yavuz. The decision makers in Turkey should also lend their full support to this investment, he said.
"We expect to see the positive results of our bureaucratic applications rapidly. There are two options. Either, my partners will establish a refinery here, and Petkim will grow with the raw material I acquire from that refinery, or I will disappear," he said.
"If a certain scale is not reached in order to keep up with the competition, one is bound to perish. I have to establish this refinery in order to secure competitive advantage. We will grow with this refinery. We will either be supported by all in our conquest, or Turkey will have to forget all about the petrochemicals industry," he said.
Meeting the demand
Socar-Turcas Joint Venture took over control of Petkim for 49 years, said Yavuz. Petkim currently meets its raw material demand via imports and a new refinery would remove the company’s dependency abroad, he said. "We are awaiting EPDK’s approval. We are conducting all the studies necessary to obtain the Environmental Impact Assessment, or EIA, document. Our engineering studies for feasibility and configurations are also ongoing."
A few years ago, Petkim used to obtain all of its naphta, a flammable liquid, from Tüpraş; however, as the firm halted production, Petkim has begun to import almost all of its naphta supply, according to Yavuz. "This project will enable us to meet Petkim’s raw material demand as well as producing chemicals to meet Turkey’s needs."
"Petkim, with its port, dam, water, electricity and steam, has a great infrastructure. That is a significant advantage. Our partners envisage an investment starting from at least $3 billion for this [refinery] project."
Petkim aims to meet 40 percent of the domestic market’s demand by 2018, Yavuz said. The refinery construction and some other investments, which will be implemented through 2018, will enable employment opportunities for at least 10,000 people, he said. Once established, the factories will also require hiring at least 1,500 people to operate, he said.
"When everyone is concerned over uncertainties, we can speak about 2018. The crisis is temporary, and we have long-term strategic targets. In line with these targets, we have the projection to connect the Caspian and Aegean. The plan also includes the Baku-Tbilisi-Ceyhan pipeline, railway connection and Shah Deniz gas field project," he said.
Within the framework of the plan, the oil that reaches Ceyhan via the pipeline will be loaded to ships and then transferred to Petkim. "It will be processed here and reach domestic market as well as the world markets, which is why I deem this the most exciting project of the last 40 years," said Yavuz.
As the long privatization process of Petkim finalized, the development helped provide jobs for 200 people, he said. Although there was no need for new employees at the time, Petkim hired new young technicians, who could be trained and put to use in the company’s future investments.