The Turkish branch of the State Oil Company of Azerbaijan (SOCAR) has announced plans to invest approximately $7 billion in new polyolefin production facilities. The initiative aims to expand capacity at SOCAR’s Petkim unit, a key player in Türkiye’s petrochemical industry, Kanan Mirzayev, head of SOCAR Turkey’s refining and petrochemicals division, revealed on Jan. 6.
Strategic Investment to Reduce Import Dependency
SOCAR’s decision, approved at a December board meeting, marks a significant step in reducing Türkiye’s reliance on polyolefin imports, which currently account for 90% of domestic consumption. “This initiative will not only diminish import dependency but also significantly boost SOCAR Turkey’s revenues,” Mirzayev said.
A detailed front-end engineering design (FEED) is scheduled for 2025-2026, with an initial investment of $50 million. The final investment decision is expected by late 2026, and the project will likely be implemented over the following five to ten years.
Petkim: A Cornerstone of Türkiye’s Petrochemical Industry
SOCAR acquired a controlling stake in Petkim in 2008 for $2.04 billion, making the nearly 60-year-old company wholly owned by the Azerbaijani energy giant. Petkim operates 16 production plants and produced 2 million metric tons of petrochemicals in 2024, meeting 11% of Türkiye’s domestic demand.
SOCAR Amid Controversy in Türkiye
Despite its industrial prominence, SOCAR Turkey has faced public criticism amid ongoing tensions related to Türkiye’s trade policies with Israel. Following widespread protests against Israel’s actions in Palestine, the Turkish government announced a full halt to trade with Israel. However, SOCAR reportedly continues supplying petrol to Israel via the Baku-Tbilisi-Ceyhan pipeline.
Pro-Palestinian activists have called out SOCAR’s operations, leading to protests and detentions. The controversy underscores the challenges of balancing geopolitical sensitivities with corporate operations in the region.
Boosting Türkiye’s Economic and Industrial Strength
As SOCAR Turkey advances its polyolefin expansion, the project is set to strengthen Türkiye’s industrial self-reliance and economic resilience. With a detailed plan in place, the initiative reflects the company’s commitment to long-term growth in Türkiye’s petrochemical sector.