Heydar Aliyev Oil Refinery, Baku, Azerbaijan


Heydar aliyev oil refinery

Heydar Aliyev oil refinery, located in Baku in the Republic of Azerbaijan, processes 21 out of 24 grades of crude oil and 15 different petroleum products. It was named after Heydar Aliyev, the third President of Azerbaijan. The plant is owned and operated by State Oil Company of Azerbaijan Republic (SOCAR).

The refinery meets the Republic of Azerbaijan's entire demand for petroleum products and exports 45% of the products. The petroleum products processed at the plant include automotive gasoline, aviation kerosene, diesel fuel, black oil, petroleum coke, and others.

The refinery is currently undergoing an extensive modernisation, which is intended to increase the processing capacity from the existing six million tonne (Mt) to 7.5Mt of oil a year by the end of 2018.

Heydar Aliyev refinery history

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). It produced 43,000t of A-98 gasoline, 1.18Mt of A-92 gasoline, and 19,700t of A-80 gasoline in 2010.

It also produced 600,400t of kerosene, 2.42Mt of diesel fuel, 214,000t of liquid gas, 267,500t of coke, and 220,600t of furnace oil during the same period.

Details of the refinery modernisation and upgrade

SOCAR announced the liquidation of Azerneftyag Oil Refinery in January 2015, to merge it with the Heydar Aliyev refinery. The decision for the reconstruction and modernisation of the refinery was taken in October 2015.

The modernisation project will increase catalytic cracking unit capacity from 2Mt/y to 2.5Mt/y. The refinery will also be made compliant to meet Euro 5 standards to process all products.

The estimated investment for the refinery modernisation is $1bn. SOCAR received the first tranche of loan towards the project from the International Bank of Azerbaijan in October 2015.

Contractors involved

Amec Foster Wheeler / SOCAR Foster Wheeler alliance was awarded the preliminary front-end engineering design (FEED) contract within the framework of modernisation of the refinery in March 2016.

"The refinery is currently undergoing an extensive modernisation, which is intended to increase the processing capacity from the existing six million tonne (Mt) to 7.5Mt of oil a year by the end of 2018."

SOCAR-KBR joint venture (JV) was awarded a project management consultancy (PMC) contract for the refinery modernisation project in March 2016.

Honeywell was awarded a contract in the same month to provide technologies to modernise the oil refinery to produce higher octane gasoline with less contaminants to meet stringent emission standards. It will also provide basic engineering designs and a process revamp study for the refinery modernisation.

SOCAR Fugro JV was preferred to perform primary geotechnical, geological, hydrological, hydro-geological and geophysical groundwater exploration within the plant's territory and surrounding areas in February 2016.

KT-Kinetics Technology was contracted for the construction of a new unit for removing sulphur, as part of modernisation of the oil refinery, in February 2016.

Pörner Ingenieurgesellschaft was contracted to design and supply a 400,000t/y Biturox plant as part of the modernisation, in October 2015. The new bitumen production unit is expected to be commissioned in mid-2018.