SOCAR-Uniper JV inks contract to construct new unit at Azerikimya
By Leman Mammadova
The Azerbaijani-German joint venture SOCAR-Uniper and PROKON company (a subsidiary of Nobel Oil Services) have signed an agreement on the installation of a third steam turbine unit for the power supply of the Azerikimya Production Union (PU), which is part of the SOCAR.
PROKON will carry out general construction and commissioning, coordinate and manage the entire construction activities of SOCAR-Uniper, as well as the purchase of structural materials for the construction of a steam turbine at the Azerikimya PU.
“Presently, the SOCAR-Uniper power plant generates steam and energy using two steam turbines. The third one to be installed by PROKON will accelerate greatly the power production,” PROKON’s CEO Azad Namazov has said.
In his words, implementation of the project will play a key role in improving the energy efficiency of production facilities of Azerikimiya.
The contract will make a significant contribution to increasing energy supply to the operator of the polyethylene plant - Azerikimya Production Association and will ensure the participation of PROKON in the general construction work in the SOCAR-Uniper’s chemical complex in Sumgait.
PROKON was established in Azerbaijan in 2012 as a subsidiary for construction and project management within the UK-registered Nobel Oil Services.
In 2016, SOCAR and Uniper established a joint venture for the development of energy efficiency. SOCAR-Uniper joint venture manufactures a steam turbine generator. The joint venture takes part in reconstruction works at the Azerikimiya PU. SOCAR's share in the joint venture is 51 percent, UNIPER – 49 percent. The launch of new facilities is scheduled for early 2020.
The modernization works are underway at Azerikimya PU. The main purpose of the modernization is to extend the life of the EP-300 installation, operated by the Ethylene-Propylene plant for over 20 years, as well as to improve the reliability and efficiency of production equipments of existing facilities.
The ethylene-polyethylene plant of the Azerikimya PU will be commissioned in a new configuration in the second half of 2020. The total project costs 508 million euros.
A large-scale reconstruction and modernization project has been implemented in the Azerkimya PU since 2016. At that time, the EPC (Engineering, Design and Construction) contract was signed as part of the reconstruction and modernization project.
After the implementation of the project, ethylene production will be increased from 100,000-105,000 to 192,000 tons, propylene - from 50,000-55,000 to 187 thousand tons per year.
Azerikimya plans to increase production by 35-40 percent in 2019. Over 337,000 tons of products such as polyethylene, ethylene, propylene, liquid and heavy pyrolysis resin, butane-butylene fraction and absolute isopropyl alcohol were produced in 2018.
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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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