The European Bank for Reconstruction and Development has signed a $120 million credit agreement that is meant to finance the energy-rich Caucasus country's plans to convert natural gas into methanol for export.

In its largest investment to date in a private Azerbaijani company, the EBRD will provide the loan to Azerbaijan's AzMeCo to launch methanol production in the Karadagh area, south of the capital, Baku. The new facility will be able to produce some 561,000 tons of methanol per year, the Anspress news service reported.

Former British Prime Minister Tony Blair, an advocate for climate change, attended the signing ceremony. The EBRD said that the estimated $300 million project will help Azerbaijan diversify client use of its gas reserves.