First stage of Baku re­fin­ery’s mod­ern­iza­tion near­ing com­ple­tion

Azer News - - Front Page - By Narmina Mam­madova

Azer­bai­jan’s state oil com­pany SOCAR is pre­par­ing for of­fi­cial com­mis­sion­ing of the new bi­tu­men plant as part of mod­ern­iza­tion of Baku Hey­dar Aliyev Oil Re­fin­ery, Pub­lic Re­la­tions Head at Azer­bai­jan’s state oil com­pany SOCAR Ibrahim Ah­madov told Trend.

Azer­bai­jan’s state oil com­pany SOCAR is pre­par­ing for of­fi­cial com­mis­sion­ing of the new bi­tu­men plant as part of mod­ern­iza­tion of Baku Hey­dar Aliyev Oil Re­fin­ery, Pub­lic Re­la­tions Head at Azer­bai­jan’s state oil com­pany SOCAR Ibrahim Ah­madov told Trend.

"The ma­jor part of the work on con­struc­tion of the bi­tu­men plant has been com­pleted and the com­pany is pre­par­ing for the of­fi­cial com­mis­sion­ing of this plant, which marks com­ple­tion of the first stage of Baku Re­fin­ery’s mod­ern­iza­tion," he said.

Ah­madov noted that the work on the se­cond and third stages of mod­ern­iza­tion is al­ready un­der­way and the new units, in par­tic­u­lar, those for diesel pro­duc­tion, have al­ready been de­liv­ered to the re­fin­ery area.

"The ma­jor part of the work in this di­rec­tion will be car­ried out through­out the next two years," he added.

As for the project for trans­fer of the pri­mary oil pro­cess­ing unit to­gether with at­mo­spheric and vac­uum dis­til­la­tion units (ELOU-AVT) from the for­mer Azneftyag re­fin­ery, Ah­madov said that the cor­re­spond­ing agree­ment will be signed after com­plet­ing the on­go­ing ten­der pro­ce­dure.

"This is the last ten­der for de­ter­min­ing the ma­jor con­trac­tors. We, of course, do not rule out the pos­si­bil­ity of hold­ing ten­ders in the fu­ture by our con­trac­tors, which for their part, can choose sub­con­trac­tors for some works," he added.

Ear­lier, Ibrahim Ah­madov said that Baku Oil Re­fin­ery named after Hey­dar Aliyev will be able to start Euro 5 gaso­line pro­duc­tion pre­sum­ably from early 2021.

Ah­madov noted that mod­ern­iza­tion will make it pos­si­ble to pro­vide the do­mes­tic mar­ket with Euro 5 fuel.

The mod­ern­iza­tion will also al­low to pro­duce Euro 5 gaso­line with 9295-98 oc­tane and other prod­ucts that will be sold depend­ing on the fu­ture mar­ket de­mand, he said.

The mod­ern­iza­tion of the Hey­dar Aliyev Baku Oil Re­fin­ery, which will be com­pleted in 2021, is cur­rently un­der­way. After mod­ern­iza­tion, the pro­duc­tion ca­pac­ity of the re­fin­ery will be in­creased from 6 mil­lion to 8 mil­lion tons per year, and the op­er­a­tional life of the en­ter­prise will in­crease to 2040.

The cost of mod­ern­iza­tion of the Hey­dar Aliyev Oil Re­fin­ery is es­ti­mated at around $2.2 bil­lion.

Hey­dar Aliyev oil re­fin­ery was es­tab­lished in July 1953 as New Baku Oil Re­fin­ery. The com­bined at­mo­spheric vac­uum plant is the ma­jor plant at the re­fin­ery and has a ca­pac­ity of 6Mt of crude oil.

The re­fin­ery was in­stalled with ma­jor equip­ment in­clud­ing ED-AV-6 unit (1976), a cat­alytic re­form­ing unit (1980), a grad­ual cok­ing unit (1986), and a cat­alytic cracker (1993).

In 2010, the re­fin­ery pro­duced 43,000 tons of A-98 gaso­line, 1,185,700 tons of A-92 gaso­line, 19,700 tons of A-80 gaso­line, 600,400 tons of kerosene, 2,420,300 tons of diesel fuel, 214,000 tons of liq­uid gas, 267,500 tons of coke, and 220,600 tons of fur­nace oil.

In Jan­uary 2015, SOCAR an­nounced the liq­ui­da­tion of Azneftyag oil re­fin­ery and its merger with Baku Oil Re­fin­ery. The de­ci­sion was made as part of the com­pany’s over­all plan to im­prove cor­po­rate struc­ture and op­ti­mize busi­ness pro­cesses through con­sol­i­dat­ing its re­finer­ies un­der an in­te­grated man­age­ment scheme.

The move is in­tended to elim­i­nate eco­nom­i­cally in­ef­fi­cient pro­duc­tion ac­tiv­i­ties as­so­ci­ated with op­er­a­tions in two sep­a­rate re­finer­ies.

The com­pany de­cided to re­build the re­fin­ery so that it will con­tinue to func­tion for an­other 15 years.

The plant is ex­pected to un­dergo a large-scale ren­o­va­tion process in­clud­ing the con­struc­tion of new plants which will in­crease the ca­pac­ity and qual­ity of the pro­duc­tion.

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