Azerbaijan’s state-owned SOCAR plans to build a new primary oil refining unit on the territory of Baku Oil Refinery named after Heydar Aliyev, Tofig Gahramanov, vice-president for strategic development at SOCAR, told reporters, Trend reports.
According to Gahramanov, as part of the modernization of the Baku Oil Refinery, it was planned to move the unit with a capacity of 2 million tons per year from the territory of the former Azneftyag refinery to the Baku Oil Refinery in order to increase the capacity of the primary oil refining unit to 7.5 million tons per year.
"Studies have shown that reconstructing the equipment of Azneftyag oil refinery is unprofitable, and it is more expedient to build a new unit. Reconstruction of the primary oil refining unit currently operating at the Baku Oil Refinery will cost more than $200 million, and another $130 million will be needed for building an additional unit," Gahramanov stated.
Gahramanov also pointed out that the construction of a new unit may last 3.5 years.
The modernization of the Heydar Aliyev Baku Oil Refinery, which will be completed by 2021, is currently being carried out. After the modernization works are completed, the operational life of the enterprise will increase to 2040.
The cost of upgrading the Heydar Aliyev Baku Oil Refinery is estimated at about $2.2 billion.
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