Azerbaijan’s SOCAR lets contracts for new units at Baku refinery

State Oil Co. of Azerbaijan Republic (SOCAR) has let two contracts to Maire Tecnimont SPA subsidiaries Tecnimont SPA and KT-Kinetics Technology SPA to deliver engineering, procurement, and construction (EPC) on a total of three new processing units to enable production of Euro 5-quality gasoline as part of the ongoing modernization and reconstruction program at the operator’s 6-million tonnes/year Heydar Aliyev refinery at Baku in Azerbaijan (OGJ Online, Dec. 21, 2017).

As part of the contracts signed on Feb. 3, Maire Tecnimont subsidiaries will provide EPC services for installation of a FCC gasoline hydrotreating unit, an LPG mercaptan oxidation unit, and an amine treatment-LPG pretreatment unit, all three of which are crucial for the refinery to upgrade its gasoline production to Euro 5-quality standards, the service provider said.

Maire Tecnimont said Tecnimont and KT-Kinetics Technology are scheduled to complete their scopes of work under the newly awarded EPC contracts—valued at a combined $160-million—within 33 months and 26 months, respectively.

Ongoing EPC works

This latest contract for the Baku refinery’s modernization program follows SOCAR’s previous $800-million award to the Maire Tecnimont subsidiaries for installation of associated utilities and storage aimed at upgrading the refinery to process to about 7.5 million tpy, as well as installation of several grassroots units to enable production of Euro 5-quality fuels, including:

• A naphtha splitter.
• A diesel hydrotreater.
• An isomerization unit.
• A hydrogen production unit.
• Two pressure-swing adsorption (PSA) units.
• A C₄ hydrogenation unit.
• A methyl tertiary butyl ether unit.
• A sour-water stripper with associated sulfur-recovery unit (OGJ, Feb. 12, 2018, p. 13).

On Feb. 3, Maire Tecnimont said its subsidiaries are continuing to jointly execute works under the 2018 contract, which is still well-within the original 41-month estimated timeframe for completion.

Baku modernization overview

To be implemented in three stages, the Baku modernization project involves a mix of upgrades to existing equipment as well as installation of 14 units.

Now completed, Phase 1 involved construction and start-up of a bitumen plant, unidentified associated plants, and a gas-filling station at the site (OGJ Online, Jan. 7, 2019).

Previously scheduled for completion by yearend 2020, Phase 2 includes construction of storage installations for Euro 5-quality diesel as well as reconstruction of unidentified units.

Phase 3, which most recently was scheduled to be completed by 2021, involves construction of an A-92/95/98 gasoline plant for production of gasoline conforming to Euro 5-quality standards.

SOCAR has yet to confirm any revised timelines for anticipated commissioning of Phases 2 and 3 of the project.