26 November 2012
AzMeCo and BP Sign Heads of Terms for Methanol Sales and Marketing Agreement
On November 26, 2012, Azerbaijan Methanol Company (AzMeCo) and BP signed a Heads of Terms agreement for the sale, purchase, and marketing of methanol. The agreement was signed in London, during the Caspian Corridor Conference, organized by CityUK in association with the International Bank of Azerbaijan (IBA) and Asia House.
Chairman of the Board of AzMeCo, Mr. Nizami Piriyev, noted the company’s strategic infrastructure developments to support global distribution:
“Turkish companies are constructing a dedicated terminal in Poti, Georgia, for the export of methanol to world markets. The terminal is owned by Poti Terminal Holding, in which AzMeCo holds a 50% stake. It is designed for the concurrent storage of 30,000 tons of methanol and will have the capacity to handle more than 60,000 tons per month.”
AzMeCo’s first methanol production is scheduled for early 2013, with final commissioning works to be completed in parallel. The initial shipments are expected within the first quarter of 2013. At full capacity, the plant is projected to produce up to 2,000 tons of methanol per day, equating to an annual output of 720,000 tons.
Production at the plant will be based on ICI technology licensed by the British firm Johnson Matthey, and the entire facility will operate with a fully automated control system. Operations will be managed by 24 trained operators, working in three shifts, with six operators per shift. Total investment in the plant’s construction has reached $400 million.
Production at the plant will be based on ICI technology licensed by the British firm Johnson Matthey, and the entire facility will operate with a fully automated control system. Operations will be managed by 24 trained operators, working in three shifts, with six operators per shift. Total investment in the plant’s construction has reached $400 million.
Commenting on the agreement, Dr. Jahangir Hajiyev, Chairman of the International Bank of Azerbaijan, stated:
“This agreement is a crucial milestone for the petrochemical industry of Azerbaijan, and a key step in positioning the country as a reliable player in the global methanol market.”