Petkim, as part of the Master Plan project, has begun licensing and engineering studies with leading global technology companies for new ethylene, polypropylene and polyethylene plants
FEED studies have officially begun for Petkim’s Master Plan project, the company’s long-term investment plan in the petrochemical sector. As part of the project, FEED, licensing and engineering agreements have been signed with licensors and engineering companies distinguished by their strong track records. The Master Plan project aims to increase ethylene and polypropylene capacities and raise total polymer production to more than twice its current level. A budget of USD 70 million has been allocated for the FEED studies, which are planned to be completed by the end of 2027 and to form the basis for a potential final investment decision.
Under the Master Plan led by Petkim, which is at the heart of SOCAR’s petrochemical investments in Türkiye, following the Goodwill Agreement signed between SOCAR and Technip Energies in July, Petkim and Technip Energies signed agreements covering FEED (Front-End Engineering Design) studies and the licensing of MFSC (Mixed Feed Steam Cracker) technology. During the FEED process, which follows the pre-FEED studies, the project scope and its technical, commercial and economic parameters will be evaluated in detail.
Strategic collaboration with industry leaders
The engineering companies and licensors that will play an active role in the Master Plan FEED process stand out for their global expertise and strong track records in their respective fields. A FEED agreement has been signed with Technip Energies for the Master Plan FEED studies. In addition, a licensing agreement has been signed with Univation Technologies, LLC for the polyethylene unit being evaluated under the Master Plan project; a licensing and engineering agreement has been signed with Lummus Novolen Technology GmbH for the polypropylene unit; and a licensing agreement has been signed with Technip Energies for MFSC (Mixed Feed Steam Cracker) technology. This marks an important milestone in the contracting process for the Master Plan’s various production units and technologies.
Targeting a significant increase in production capacity
If a final investment decision is made following the completion of the FEED studies, Petkim aims to increase its annual ethylene capacity from 558 thousand tonnes to 1.2 million tonnes and its annual polypropylene capacity from 145 thousand tonnes to 550 thousand tonnes. With the new units and capacity increases being evaluated under the Master Plan, Petkim’s total polymer production is also expected to rise to more than twice its current level.
The Master Plan project will address Türkiye’s long-term needs in the petrochemical sector”
Kanan Mirzayev, General Manager of Petkim and Head of SOCAR Türkiye Refining and Petrochemical Business Unit, said, “Following the Goodwill Agreement we signed with Technip Energies in July as part of our Master Plan project, the signing of the FEED agreement is a concrete and important step demonstrating that our project is progressing as planned. During the FEED phase, we will evaluate the project’s technical and commercial parameters in greater detail and carry out the engineering studies that will form the basis for the final investment decision. At the same time, the signing of licensing and engineering agreements for polyethylene, polypropylene and MFSC technologies demonstrates the significant progress we have made across different components of the project. We have allocated a total of USD 70 million to the FEED process. We see this as an investment in Petkim’s future. If a final investment decision is made following the completion of the FEED studies and the investments being evaluated under the Master Plan are implemented, we aim to significantly increase our ethylene and polypropylene capacities and raise our total polymer production to more than twice its current level. We consider our Master Plan project a strategic transformation project that will address Türkiye’s long-term needs in the petrochemical sector while supporting Petkim’s competitiveness and sustainability. We believe that the steps taken at this stage will contribute to Petkim’s future and the development of Türkiye’s petrochemical ecosystem,” he said.
The Master Plan project aims to support the long-term sustainability of the company’s existing production infrastructure, develop its production capacity and technological infrastructure, and further strengthen refinery-petrochemical integration. Assessments regarding the final investment decision under the Master Plan project will be carried out following the completion of the FEED studies.