Caspian Energy (CE): Mr. Ismayilov, what is the purpose of reconstruction of the Heydar Aliyev Oil Refinery and what operations are currently underway at the refinery?
Elman Ismayilov, Director of SOCAR Heydar Aliyev Oil Refinery: Reconstruction and modernization of the Heydar Aliyev Oil Refinery has been commenced according to the instruction of President of Azerbaijan Ilham Aliyev in order to ensure fuel-energy security of Azerbaijan, compliance of motor gasoline and diesel fuel with Euro-5 environmental standards, production of competitive oil products both for the internal and external markets and covering the demand for oil products in the domestic market until 2030. The work on reconstruction of already existing and erection of new units has already been assigned. First of all, as you know, the capacity of ELOU-AVT crude oil distillation unit is to increase from current 6 up to 7.5 mln tonnes per year. The output of the catalytic cracking unit will increase from 2 up to 2.5 mln tonnes annually.
The first stage task is to build a new bitumen plant within a short period of time so that to halt the operation of the existing facility in the area of former Azerneftyagh oil refinery. As is known, this activity is carried out within the framework of the White City project. The agreement on design of the bitumen plant has already been signed. The site for construction is ready. Geodesic operations have been completed. The stage of the project execution will start in near future. The purpose is to have the bitumen plant launched in 2018. The production capacity of the new plant will be higher than that of the current one. The production capacity of the old plant makes 250,000 tonnes per year while the output of the new one is planned at 400,000 tonnes per year.
In parallel, production of diesel fuel, meeting Euro-5 standard, will be established. Afterwards, motor gasoline produced here will also meet Euro-5. New units will be built within the framework of production of petrol meeting new standards. One of such units is designed for production of methyl tertiary butyl ether (MTBE) which will allow to raise an octane volume. It will be produced from liquefied hydrocarbon gas and methanol.
Apart from this, an isomerization plant is to be built as well. It will help to raise an octane volume by means of isomerization of light fraction of gasoline produced at the crude oil distillation unit. The aim is to ensure production of petrol meeting Euro-5 standard.
Modernization will have been completed till 2022. Thus, the refinery will be fully upgraded for manufacturing of oil products in compliance with modern quality standards complying with Euro-5.
CE: Could you please tell in details about the reconstruction and construction of new units at the refinery?
Elman Ismayilov: The following units are to be built at the refinery: bitumen plant, distillate hydrotreatment unit, isomerization unit, MTBE unit, merox treating unit, diethanol amine based gas sweetening unit, heavy petrol hydrotreater unit produced at the catalytic cracking unit because Euro-5 standard has tough requirements for impurities including for the sulfur content.
Catalytic cracking unit splits gasoline in two parts. Heavy gasoline undergoes hydro-treatment.
Besides, a hydrogen production unit will be built because the demand for hydrogen is rising along with the increase of hydrotreaters. Hydrogen gas currently produced at catalytic cracking unit will not suffice for all units.
There is also a plan to build a water desalting unit. It is important in the process of steam production with excessive heat emission.
Diethanolamine-based gas sweetening unit will also be built. There is already a raw material supplied to Azerkimya PU. In future it should fully comply with units which will also undergo upgrading. Dry gas is now supplied to Azerkimya as a raw material. A raw material, supplied to Azerkimya PU, in future must fully comply with plants which will also be modernized there. Dry gas is currently supplied as a raw material to Azerkimya. Therefore, C4 fraction hydrogenating plant is planned to be built additionally, which is major raw material in petrochemistry. C4 fraction hydrogenating plant is being designed by Axens Company.
Sulfur content in petrol now totals 250ppm according to standard. It will make 10ppm with Euro-5. The same refers for diesel fuel.
Our goal is to produce export-oriented oil products. We now export up to 35% of products. It mainly includes Black Sea countries. In general, there are up to 60 countries receiving our oil products.
CE: When will the supply of equipment, based on the signed contracts for modernization, be started?
Elman Ismayilov: We will be ready for this stage by the end of the year. Initial basic engineering is currently underway. All schemes will have been prepared by the end of the year whereupon an order for plant equipment is placed at the stage of detailed engineering.
As a result of researches held for production of high quality gasoline, UOP, which has an advanced world experience, was selected by SOCAR as a licensor of units of the refinery, including CNHT, catalytic cracking unit, isomerization plant, methyl-tertiary-butyl-ether (MTBE) production, sour oxidation of unsaturated liquefied gas as well as amine treatment and oxidation of sulphides. Apart from this, contracts have been signed with the Austrian Poerner, French Axens and a number of other companies within the framework of modernization of Heydar Aliyev Oil Refinery.
CE: What could you tell about the training of human resources for operation of the new units?
Elman Ismayilov: Training of human resources is certainly of importance for us. Instructions to recruit and train human resources to work on the new plants have been given. About 12 new plants will be built at the refinery. Accordingly, we have to train human resources to work on them.
Operations in this direction are currently underway as well. Apart from this, a decision to use young human resources from the affiliated Azerneftyagh oil refinery has been made. No one will remain outside after the shutdown of this facility. All employees will be provided with work.
CE: What have been the major results of the economic performance of the refinery since the beginning of this year?
Elman Ismayilov: All operating processes of the catalytic cracking, delayed coking plants and other sections of the refinery have already been computerized. Overall renovation has been carried out at workshops as well as production sites. All necessary conditions have been created for employees. All safety regulations, quality of products and ecological requirements meet standards at the refinery.
According to the outcomes of January-April 2016, the management and the staff of the refinery have successfully fulfilled production tasks and assignments of SOCAR. We managed to implement a production program owing to a maximal use of human and technical resources.
The refinery processed 2104.3 thousand tonnes of crude over the period under review. Of this total, 2084.4 thousand tonnes and 19.9 thousand tonnes fell to the share of oil and semi-finished products respectively. External semi-finished products included 8.3 thou tonnes of natural gasoline of Garadagh GPP, 2.8 thou of pyrolysis resin of Azerkimya PU and 8.8 thou tonnes of mix of different imported products.
In spite of the fact that in the first quarter of this year the refinery operated in the “fuel oil regime” as for the task of SOCAR in order to supply Azerenerji OJSC with petcoke in winter, the work on optimization of the major activity of the refinery was carried out over the mentioned period. Owing to the staff of oil refiners, the refinery arranged a rational use of production capacities of all process units, especially reprocessing of heavy and light fractions, created conditions for production of more expensive oil products from available low-cost residual components emerged in the course of refining. In conditions of “fuel oil regime” we brought processing depth up to 81.3% which is 1.2% above the plan.
The Refinery produced 368.7 thou tonnes of petrol, 809.6 thou tonnes of jet engine fuel and diesel fuel, 53.3 thou tonnes of liquid gas, 45.8 thou tonnes of oil coke, 30.2 thou tonnes of bitumen, 29.7 thou tonnes of DT and A engine fuel, 2.2 thou tonnes of different lubricant products, 50.5 thou tonnes of hydrotreated gasoline for chemical industry, 23 thou tonnes of dry gas, 319 thou tonnes of furnace oil for Azerenerji and other organizations, as well as other oil products. In general, commercial products worth 1 bln 883.4 mln AZN were produced in 2015. 30.1% of products, manufactured at the refinery, have been exported.
