Star Refinery Expected To Enter Into Force In 2018

Star Refinery which will enter into force in 2018 in Izmir can be able to meet one third of 12 million tons of imports by itself with 4,7 million tons diesel production

Diesel consumption in Turkey increased from 14,4 million tons to 15,6 million tons in the first 8 months year on year. In this period, diesel production raised by 7,2 million tons which were 5,9 million tons in the first 8 eight months in 2016.

Rising paralleling diesel-fueled vehicles, the diesel imports decreased 0.47 percent within last 5 years first time due to the production increase in January-August 2017 over the same period previous year.

Before being used in vehicles with high voluminous engines, also having preferred in automobiles, so, the increased imports have entered downward trend along with investments made refineries to surge diesel production, in the first 8 months of 2017 year after a long time.

Thus in the first 8 months last year, the diesel imports decreased by 8 million 354 thousand tons with 0.47 percent. In 2016 in the first 8 months having 72.2 percent share in the total consumption, in the same period of 2017 the diesel imports in the total consumption decreased by 51.9 percent.

In the first 8 months of 2017, diesel consumption surged from 14,4 million tons to 15,6 million tons, as for the production jumped from 5,9 million tons to 7,2 million tons. Hence the consumption increase of 1,2 million tons in diesel was met by production rise accounted for nearly 1,3 million tons, according to the data of Energy Market Regulatory Board. According to this data, 83.5 percent accounting for 22,3 million tons of totally 26,7 million tons of oil consumed in Turkey in 2016 were the sales of diesel. 9,5 million tons of consumed diesel was met by domestic production, 1,3 million tons via imports.

Meeting Turkey’s diesel consumption by the domestic production evaluated strategically due to lowering imports and also current account deficit, meanwhile technical works continues in refineries in this issue.

The first one of domestically diesel production increase in the home entered into force via ‘Fuel Oil Transformation Project’ in 2014, in this scope the Star Refinery which is in construction stage expected to be commissioned in 2018.

Nearly additional 3 million tons of diesel production capacity utilization has been provided through ‘Fuel Oil Transformation Project’ accomplished in 2014 at TUPRAS refinery, the affiliation of Koc Conglomerate.

This project costed worth $3 billion was the Turkish biggest industrial investment was made in a single time. As foreign trade deficit decreased $1 billion dollar with this project, meanwhile job was generated for 500 people.

Star Refinery, which will be commissioned by SOCAR in 2018 in Izmir, the Azerbaijani State-Run Oil Company, can be able to meet one third of 12 million tons of imports by itself with 4,7 million tons diesel production.

The oil derivative products such as diesel, jet fuel, naphtha and petrol coke to be produced by the refinery to cost totally worth $5,7 billion, the imports will decrease in great deal. Star Refinery is believed to prevent imports of oil derivatives totally worth $2,5 billion.

#StarRefinery, #Expected, #Force