Azerbaijan SOCAR Signs $1.2 Billion Petrochemical Complex Deal

SOCAR has signed agreements valued at $1.2 billion for construction of a new petrochemical complex near Azerbaijan's Sumgait industrial zone, advancing the state oil company's strategy to capture more value from hydrocarbon resources through downstream processing.

The facility will produce polyethylene and polypropylene using feedstock from SOCAR's existing refining and gas processing operations. Annual production capacity is planned at 500,000 tonnes of polymer products serving regional and international markets.

International engineering firms will provide technology licensing and construction management services. The project creates approximately 2,000 construction jobs and 800 permanent positions once operational, expected in 2028.

Azerbaijan currently exports most hydrocarbons as crude oil and natural gas. Petrochemical development enables domestic value addition while creating diversified revenue streams less dependent on commodity price volatility.

The investment complements SOCAR's renewable energy partnerships, including joint ventures with Masdar for solar and wind development. The company maintains a 25 percent stake in renewable projects totaling over 1 gigawatt capacity while pursuing hydrocarbon value chain optimization.