BAKU, Azerbaijan, October 21. Azerbaijan’s
state oil company SOCAR could use its financial resources to invest
in export-oriented non-oil industries, reads the “Trade Study
Report – Trade Sector Development in Azerbaijan: Policies,
Constraints and Opportunities”, issued by the EU.
The report shows that SOCAR Carbamide Plant, SOCAR Methanol, and
SOCAR Polymer have made significant contributions to the growth of
non-oil exports. These enterprises have enabled the production of
higher value-added products instead of the direct export of natural
gas.
“The SOCAR Polymer complex in the Sumgayit Chemical Industrial
Park, which includes polypropylene and high-density polyethylene
(HDPE) plants commissioned in 2018–2019, has played a key role in
expanding Azerbaijan’s polymer production capacity. By processing
natural gas–derived feedstock domestically and exporting higher
value-added polymer products, SOCAR Polymer has significantly
contributed to the rising export values of these polymer categories
during the 2020–2024 period, further supporting Azerbaijan’s export
diversification strategy,” reads the report.
The authors believe that building on this momentum, SOCAR could
use its financial resources to invest in export-oriented non-oil
industries that extend beyond petrochemicals.
“At the initial stage, this could include, for example, the
production of finished polymer-based products (such as packaging,
plastic pipes, construction materials, technical plastics, etc.).
Subsequently, synthetic fibres for textiles and technical textiles
at a higher stage of processing from polymer feedstock; fertilizers
and agrochemical products; synthetic rubber and elastomer products
used in the automotive, construction, and industrial sectors; and
high-tech industrial materials such as carbon fibres and composite
materials could be added,” reads the report.
EU believes that such investments would help transform SOCAR’s
activities from a raw materials and energy sector focus into a
broader industrial and export ecosystem. In this regard, the
experience of national oil companies in Kazakhstan (KazMunayGas),
the United Arab Emirates (ADNOC), Saudi Arabia (Saudi Aramco), and
Malaysia (PETRONAS) in transitioning from oil and gas feedstock to
broader industrial and export ecosystems could serve as a direct
successful example for SOCAR.
