SOCAR transforms gas into commercial value, influence Article by Middle East Monitor

The UK-based publication Middle East Monitor has published an article written by Umud Shokri on SOCAR’s energy strategy in Türkiye. Caliber.Az reprints some excerpts from the piece for its readers. 

“State Oil Company of the Republic of Azerbaijan [SOCAR] has become one of Türkiye’s largest foreign investors and a core pillar of the Baku–Ankara energy partnership. Since acquiring Petkim in 2008, the Azerbaijani state energy company has built an integrated portfolio spanning petrochemicals, refining, gas transit, logistics, storage, and power generation. 

This portfolio creates commercial value for Azerbaijan and strengthens its regional influence, while Türkiye gains capital, industrial capacity, refined products, petrochemical feedstock, gas connectivity, and electricity generation. The partnership is therefore a potential win-win.

From Petkim to an integrated industrial platform

The foundation of SOCAR’s Turkish strategy was the acquisition of a 51 percent stake in Petkim through Türkiye’s privatisation process in 2008 for approximately $2.04 billion. Petkim is Türkiye’s first and only integrated petrochemical producer, supplying raw materials to sectors including plastics, packaging, construction, automotive manufacturing, textiles, pharmaceuticals, and agriculture.

Reuters reported that Petkim operated 16 production plants and produced approximately two million tonnes of petrochemicals in 2024, meeting around 11 percent of Türkiye’s domestic demand. 

SOCAR’s ownership therefore gives Azerbaijan access to a large industrial market while supporting Türkiye’s efforts to expand domestic production. The investment also moves Azerbaijan beyond the traditional role of a crude-oil and natural-gas exporter.

The STAR Refinery deepened this integration. Located in Aliağa, İzmir, the refinery was inaugurated in October 2018. The current STAR Refinery profile lists annual crude-processing capacity of 12 million tonnes and storage capacity of 1.9 million cubic metres. 

TANAP and the geopolitics of transit

The Trans-Anatolian Natural Gas Pipeline (TANAP) is at the heart of the Azerbaijan–Türkiye energy partnership. It connects the South Caucasus Pipeline with the Trans Adriatic Pipeline, carrying gas from Azerbaijan’s Shah Deniz field across Türkiye to Turkish consumers and European markets.

TANAP is the central link in the Southern Gas Corridor, with an initial capacity of around 16 billion cubic metres per year and room for expansion. TANAP gives Azerbaijan a major route into European markets, provides Türkiye with additional gas supplies and transit revenues, and offers Europe another source of energy. 

Its ownership structure also reveals the project’s wider significance. Southern Gas Corridor CJSC, BOTAŞ, BP Pipelines, and SOCAR Caspian Holding are the shareholders. Through these arrangements, SOCAR is doing more than selling gas through a pipeline: it is helping shape the infrastructure and institutions that turn Azerbaijani gas into long-term market access, commercial value, and political influence.

The move from gas to power

SOCAR’s acquisition of Gama Enerji’s İç Anadolu combined-cycle natural-gas power plant extended the company’s Turkish portfolio into electricity generation. The agreement, signed in December 2025, transferred 100 percent of the 870 MW facility to SOCAR Türkiye for approximately $225 million. SOCAR describes the acquisition as completing its gas-to-power value chain.

Its strategic importance is more precise: the plant gives SOCAR a position in electricity generation and trading, allowing it to participate in another segment of Türkiye’s energy system. 

Conclusion

SOCAR’s investments in Türkiye demonstrate how a state-owned energy company can combine commercial expansion with national strategy. Petkim, STAR, TANAP, gas infrastructure, logistics assets, and the İç Anadolu power plant are not merely separate investments. Together, they connect Azerbaijani resources with Turkish industry, domestic energy consumption, electricity generation, and European markets.

Azerbaijan gains market access, downstream value creation, export diversification, and geopolitical influence. Türkiye gains capital, industrial depth, refined products, gas connectivity, and a stronger position as a regional energy hub. This makes the Azerbaijan–Türkiye energy relationship a genuine example of structured mutual gain,” Shokri writes.