Türkiye says Azerbaijan's SOCAR planning $7B petrochemical investment

Azerbaijani state energy giant SOCAR is planning a petrochemical investment of approximately $7 billion in Türkiye, a top official said on Wednesday, cementing its role as the country’s largest foreign investor, according to Daily Sabah.

"We are pleased to learn that, following preliminary engineering and feasibility studies conducted under its 'Master Plan,' SOCAR Türkiye is planning an additional petrochemical investment of approximately $7 billion in our country," Vice President Cevdet Yılmaz said.

"We hope this project will be implemented as soon as possible. These kinds of initiatives are especially crucial for reducing our current account deficit. Every dollar of production generated here will help lower the deficit and contribute to Türkiye's macroeconomic stability," Yılmaz told an event in Ankara.

Kanan Mirzayev, head of SOCAR Türkiye's refining and petrochemicals division, in January said the company planned to spend around $7 billion on establishing several new polyolefin production facilities.

The decision was approved at a December board meeting, and the project is expected to be implemented over the next five to 10 years, Mirzayev said.

SOCAR's total investments in Türkiye have already exceeded $18 billion, spanning energy, petrochemicals and logistics sectors.

The company owns Petkim, Türkiye's leading petrochemical company, acquired in 2008 for over $2 billion. The unit operates 16 production plants and, in 2024, produced 2 million metric tons of petrochemicals, meeting 11% of Türkiye's domestic demand.

It also operates the STAR Refinery in the Aegean province of Izmir, one of the most advanced in the region, and is engaged in import, storage and distribution of natural gas.

Yılmaz said SOCAR's research and development work, including in sustainable aviation fuel production, aligns with Türkiye’s 2053 net-zero emissions targets.

On regional energy cooperation, Yılmaz stressed the strategic role of Türkiye-Azerbaijan ties.

"Among the most critical steps we will take together in the coming years is to enhance our cooperation on investments that will enable Azerbaijan to supply larger volumes of natural gas, as well as on the export of Turkmen gas via Azerbaijan and Türkiye in a way that benefits all parties," he noted.

Yılmaz also referred to the recent launch of gas supply to Syria from Azerbaijan through Türkiye, which he described as a critical partnership.

"The delivery of Azerbaijani natural gas to Syria via Türkiye has been made possible through the close cooperation and coordination between our countries," he said.

Türkiye supported opposition forces in Syria throughout the 13-year civil war that ended with the ousting of longtime dictator Bashar Assad in December and has become one of the new Syrian government's main foreign allies.

It is now positioning itself to be a major player in Syria's reconstruction.

"Natural gas supplied from Azerbaijan will be converted into electricity in Syria, helping to illuminate the darkness endured by the Syrian people, who have long suffered under an oppressive regime," said Yılmaz.

Azerbaijan will export 1.2 billion cubic meters (bcm) of gas annually through Türkiye to Syria. The gas will be used to restart power plants in Syria with a combined capacity of 1,200 megawatts.

Yılmaz also stated that expanding electricity interconnection between Türkiye and Azerbaijan would represent another strategically significant step.

He emphasized the need to strengthen connectivity across all domains, including transportation, energy, communications and digitalization, and noted that, particularly in the fields of energy and electricity, this would offer substantial opportunities.