By Ayya Lmahamad
Azerbaijan State Oil Company (SOCAR) has signed two Engineering, Procurement and Construction (EPC) contracts with Italy’s Maire Tecnimont’s subsidiaries Tecnimont and KT-Kinetics Technology, as a part of the modernization and reconstruction of Heydar Aliyev Oil Refinery in Baku.
The contracts envisage the installation of three process units necessary for the production of EURO-5 gasoline at the Heydar Aliyev Oil Refinery.
The scope of the first contract entails the installation of an FCC gasoline hydrotreating unit, while the other contract refers to the installation of an LPG (Liquefied Petroleum Gas) mercaptan oxidation unit and an amine treatment and LPG pretreatment unit.
It should be noted that these units are crucial to upgrade the quality of gasoline to the EURO-5 standard.
Both projects will be executed in the Heydar Aliyev Oil Refinery, where Tecnimont and KT-Kinetics Technology are already jointly executing an EPC contract awarded in 2018, by winning the tender at that time for other new units.
The overall contracts’ value is around $160 million. In addition, the projects under new EPC contracts are expected to be completed within 33 and 26 months respectively, from the signing date.
“SOCAR’s Heydar Aliyev refinery, being the only oil refining complex in the South Caucasus region, plays an important economic role. It’s the only regional fuel supplier as well as a feedstock provider to SOCAR’s petrochemical units,” company’s president Rovnag Abdullayev said.
He underlined that the refinery’s modernization will significantly improve the quality of produced diesel and gasoline, upgrading them to comply with EURO-5 standards. Abdullayev added that it will also supply Azerbaijan’s petrochemical industry with sustainable and cost-efficient feedstock.
“While modernization is an inevitable business standpoint, it will also reduce the environmental footprint and increase the quality of life in our cities. In order to accomplish these strategic goals, we are pleased to cooperate with famous Maire Tecnimont Group, the company representing the creative and competent spirit of Italy, our friendly country,” he added.
“We are really honored to put once again our technological expertise at the service of a historical and prestigious client such as SOCAR, thus consolidating our successful, longtime collaboration aimed at unlocking greater value in Azerbaijan’s downstream value chain. This achievement lets us foster a mutually beneficial relationship and paves the way to future growth, confirming the reliability of our technology-driven strategy,” Maire Tecnimont CEO Pierroberto Folgiero emphasized.
Heydar Aliyev Baku Oil Refinery is one of the largest oil refineries in the South Caucasus.
The refinery is processing 21 out of 24 grades of Azerbaijan crude and 15 different petroleum products, including automotive gasoline, aviation kerosene, diesel fuel, black oil, petroleum coke, and others. The plant is meeting the republic’s entire demand for petroleum products completely. Some 45 percent of its petroleum products are exported.
The plant’s annual capacity varies between 4-6 million tons, with the prospect of increasing to 10 million tons.
Modernization of the refinery started in 2019 and will be completed in 2021. After modernization, the refinery’s production capacity will be raised from six million to eight million tons per year, and a useful life of plant will be extended to 2040.
Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad
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