OIL&GAS
Reconstruction of the  Heydar Aliyev Oil Refinery  will strengthen export potential of Azerbaijan
Elman Ismayilov, Director of the SOCAR Heydar Aliyev Oil Refinery

Caspian Energy (CE): Mr. Ismayilov, could you please tell about the progress of reconstruction and upgrading of the processing plant?

Elman Ismayilov, Director of the SOCAR Heydar Aliyev Oil Refinery: The accelerated development of the oil industry, which is a priority segment of the Azerbaijan’s economy, has resulted in greater ability to reconstruct and upgrade the processing plant, including the Heydar Aliyev oil refinery. Thus, performance of reconstruction and upgrading operations, as well as construction of a total of 14 modern process facilities are expected at the enterprise in the near future. Among the above mentioned activities, noteworthy is the dismantling of the bitumen plant with the capacity of 250,000 tonnes per year , located within the structure of Azerneftyagh Oil Refinery, and the commissioning of the new bitumen plant with the capacity of 400,000 tonnes per year at the Heydar Aliyev oil refinery in accordance with the domestic needs of the country. Construction of the plant which foundation laying ceremony was attended by the Head of State Ilham Aliyev in September 2016 is ongoing. A new bitumen plant is planned to be commissioned this year. Azfen Company is performing construction and reconstruction of the new bitumen plant. Construction of a new water-cooling facility at the plant was one of the momentous events of the past year. The launch of a new water cooling facility (cooling tower) has been another successful work carried out as a part of the refinery’s reconstruction. 

 

CE: What is the capacity of the cooling tower? 

Elman Ismayilov: Heydar Aliyev oil refinery has developed a benchmark project of the water cooling facility (cooling tower) together with the French company HAMON THERMAL EUROPE while the project of laying an overflow pipeline meant for the purified and cold water injected into the operating process facilities has been drawn up by  “Neftgazelmitedgigatlayihe” institute.  Works on construction of the water cooling facility started in February 2015. Operations performed by SOCAR “Neftgaztikinti” Trust were completed in April 2017. The launch of the facility was timed to coincide with the following anniversary of the All-National Leader Heydar Aliyev.  

The water cooling capacity of the tower makes 7,000 cubic meters per hour. 

The plant’s upgrading and reconstruction project also envisages setting of new plants into an operating cooling tower by means of erection of an extra block.              

 

CE: Which innovations were used in the course of the construction?

Elman Ismayilov: Of course, particular emphasis has been also placed on rational use of capacities of the refinery’s processing facilities and on delivering targeted measures to introduce modern technologies and latest achievements of the scientific progress. Regular work on upgrading of equipment of processing facilities and automatic management over technological processes is carried out in order to ensure an efficient oil processing. 

Recent measures on capital repair of processing facilities, introduction of progressive technologies, reconstruction of production sites, expansion of infrastructure and other work aimed at modernization of the oil refinery, promoted the development of the enterprise. 

Repair of the processing facilities at the Heydar Aliyev oil refinery, which started on August 10 of the last year, has been successfully completed. Catalytic cracking #55, pre-treatment #21 and coking #43 units, and catalytic reforming unit #31 have been fully repaired and commissioned during this time. 

 

CE: What importance is attached to the environmental safety?

Elman Ismayilov: In addition to the production success, the management team of SOCAR is also focusing on the human factor and environmental safety challenges. Certain work has been carried out in this direction at the plant. Regular preventive measures are taken at the plant in order to reduce a negative impact on the environment. These measures involve reduction of electricity consumption, especially fuel burnt in furnaces, ensuring of appropriate condition of tanks meant for oil and oil products storage, etc.  It is noteworthy that the rate of the negative environmental impact is regulated by normative documents. In such situation, the current environmental figures of the plant fully comply with the standards. In the meantime, upgrading and greenery planting work is carried out at the plant, which plays a significant role in improvement of the environmental conditions. Planting of green belts inside of the plant and around it, planting of bushes and trees, agrotechnical treatment, has become a daily work at the plant, aimed at the environmental protection and maintenance of an environmental balance. 

As is known, major works on construction of modern processing facilities were commenced within the framework of the State program to reconstruct and renovate the Heydar Aliyev oil refinery. Construction of 14 processing facilities has been a significant event in the history of the plant. Therefore, the attention of the management team of SOCAR and the plant, senior specialists and engineering staff is focused on construction and preparation of new processing plants for the commissioning. 

 

CE: What work has been done within the framework of EPC project?

Elman Ismayilov: EPC works in oil refinery’s reconstruction are split into two parts: construction of new units and renovation of operating ones. A tender for construction of new units was announced on 10 February 2017. 5 international companies took part in the pre-qualification process. Having scored the highest points, Tecnimont/Kinetics Technology Alliance of Companies (subsidiaries of Maire Tecnimont SpA) was selected as an EPC-contractor for the construction of new facilities. The contract envisages construction of over 10 production units. At the same time, reconstruction of operating units and objects inside of the plant was assigned in December of the past year to Técnicas Reunidas Company, the winner of another tender. 

The project of reconstruction of the oil refinery is managed by contractor companies - SOCAR-KBR/KBR Alliance. The project is planned to be completed in 2021. The first stage would consist of construction of a new bitumen unit and other units, as well as liquefied gas injection point. A unit producing diesel fuel meeting the Euro-5 standards will have been built by the end of 2020 at the second stage. Reconstruction work will run in parallel. The last stage of the project is to build new units, producing A-92/95 petrol meeting Euro-5 standards, by the beginning of 2021.  

Implementation of the modernization project will make it possible to bring the quality of produced fuel in accordance with Euro-5 standard and bring the production volume up to 7.5-8 mln tonnes per year. Reconstruction will boost the export potential of our country and increase the oil refinery’s income. Besides, it will also improve a stable supply of raw materials to Azerkimya PU. As a result of the project implementation, optimization of operating expenditures of the oil refinery and improvement of the environmental condition of Baku are expected. 

CE: When will a new bitumen plant be launched?

Elman Ismayilov: As is known, construction contractor Azfen JV has started building a new bitumen plant at the oil refinery since April 2017. Construction-assembling operations are carried out in complete safety and in compliance with the requirements of construction norms and rules, international and local standards. 

Laying of external fire-extinguishing pipeline, sewage lines, underground pipelines, and equipment grounding have been completed. Besides, the work on installation of metal structures on pipe trestles PR-301/302/303, in compressor rooms, mobile tank fueling stations and other equipment has been fulfilled. Works on assembling and welding of process pipelines lying on trestles, as well as flange joints are ongoing. Cooling and heating systems, plastic windows and doors have been installed in the administrative building, substation and weighing house. Operations on laying cables over the walls, electrical and cosmetic work are continued. The work on laying technological pipelines and flange joints in the area of the plant is complete by 75%. Besides, placing concrete in foundation of the drying site, pumping station, ramp for filling highway tank trucks and drainage lines is completed. 

Vacuum tanks 23-T-001, 23-T-002, 23-T-003 and bitumen tanks 23-T-201, 23-T-202 and 23-T-203 have been installed, welding and other operations on the tanks are continued. The volume of overall operations concerning the tanks is complete by 52%. The company has set a double-shift system to fulfill operations in accordance with the schedule.