21-12-2018

First phase of Heydar Aliyev Refinery modernization completed

On December 21 a new bitumen plant and liquefied gas filling station were launched as part of the first phase of Heydar Aliyev Refinery’s reconstruction and modernization program. The President of the Republic of Azerbaijan, Ilham Aliyev attended the opening ceremony.

SOCAR President Rovnag Abdullayev reported to the head of state that the opening of the bitumen plant would increase the annual production from 250,000 up to 400,000 tons. High-quality bitumen PEN 40/60 will be produced in the plant to meet domestic demand. The new facility will save energy and make a significant contribution to environment protection in Baku. It will also minimize the plant's operational costs. The construction of the new bitumen plant was necessary because of the reconstruction of the Heydar Aliyev Refinery and the phased cleaning of the former Azerneftyag’s territory to involve it in the White City project.

SOCAR president R.Abdullayev said: ''The modernization project of the oil refinery, which is bearing the name of the National leader, has historical importance. Upon completion of the modernization, this plant will provide our country with high quality fuel, strengthen Azerbaijan's export potential and serve to further strengthen the country’s position in the region. Today we have completed the first phase of this historic project. As a result of the commissioning of the new bitumen plant, the quality of the asphalt-bitumen used in road construction will be improved. It will save energy and contribute to the environment protection. In the next phases, Euro-5 standard diesel and gasoline fuels are expected to be produced in the plant, and the work is rapidly developing toward this important milestone.''

The first phase of the modernization project completed today consists of three main parts: construction of the new bitumen plant and gas-filling station, demounting and cleaning work in the areas where new plants are planned to be built in the next phases plus preparation for the construction work.

• Bitumen plant covers an area of 7.7 hectares. About 150,000 cubic meters of land, more than 650 tons of metallic construction, more than 530 tons of pipes were used in the construction of the facility.

• Liquid gas station consists of 6 loading tanks and 5 wagons. During this year, the facility will release 180,000 tons of propane-propylene, 100,000 tons of liquefied gas (LPG) by road-tankers and railway, 178,000 tons of butane-butylene fraction by pipelines and if necessary, by road-tankers or railway. Propane-propylene and butane-butylene fractions will be used as raw materials in the enterprises of Azerikimya and sold for use in household and transport vehicles.

• The issues related to the removal of old equipment from the areas considered for 13 new basic plants, which are to be built in the next stages, land surveying works that are necessary for the modernization, as well as preparing the site for construction, have been already resolved.

Bitumen, is not only an important component of the asphalt coating, it is also used in paint and ink production, insulation and hermetic encapsulation of cables, pipes, roof and other surfaces, as well as in various construction work.

In 2016, a detailed engineering, procurement, construction and management contract (EPCm) for a new bitumen plant was signed with Poerner Gruppe, Austria. Azfen, the construction contractor began building of the facility in April, 2017. 400 local workers and specialists were involved in the construction.

Reconstruction work at the Heydar Aliyev Oil Refinery is being done in  three phases. The first phase of the reconstruction project was completed with the construction of a new bitumen plant and associated plant facilities, a liquid gas filling station, as well as preparing the sites for the new facilities intended to be constructed in the next stages. The second phase of reconstruction work to be completed by the end of 2020 will facilitate the production of Euro-5 diesel fuel while the third phase scheduled for the beginning of 2021 will enable the production of Euro-5-standard A-92/95/98 gasoline. It will increase the refinery’s annual processing capacity to 7.5 million tons per year and create a steady supply of raw materials to Azerikimya. The reconstructed refinery will completely meet the demand of the domestic market for high quality fuels, reduce carbon emissions in Baku and improve the environmental situation.