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HAOR Modernization and Reconstruction


The Heydar Aliyev Oil Refinery (HAOR), the largest and most advanced fuel production facility in Azerbaijan, was set up in 1953. In 2004, its 50th anniversary was marked by naming it after National Leader Heydar Aliyev.

The refinery supplies the bulk of the national demand for gasolines, jet fuel, diesel fuel, petroleum coke, fuel oil and other stock, while exporting as much as 10 percent of its total produce.

The reconstruction and modernization project has been kicked off at the refinery, aiming to increase its output against the growing demand of the domestic and foreign markets; another objective was to supply the market with high-quality Euro-5 fuels, supply the feedstock demand at PU Azerikimya, and ramp-up the export potential of petroleum stock.

The project is implemented in phases and encompasses the installation of new units, reconstruction of some facilities, and upgrade of utility systems. A new bitumen blowing unit was built in the first phase, bringing the annual production capacity of PEN 40-60 high-quality bitumen from 250 to 400 kta and fully supplying the national demand. Bitumen is used in civil and road construction and the piping industry, as well as in the production of asphalts, cables, and paints.

The completion of phase one made it possible to supply Azerikimya's Steam Cracker with primary feedstock, thereby ramping up the efficiency of ethylene and propylene supply to SOCAR's polymer plants. A new LPG loading station capable of simultaneously loading 7 tank trucks and 5 rail tank cars was brought onstream as part of this very phase. From these tanks, as much as 180 kt of propane-propylene, 100 kt of liquefied gas, and 178 kt of butane-butene (both via a pipeline and by rail cars) are shipped to Azerikimya as feedstock.

The next phase of the project anticipates the production of diesel and gasoline in line with Euro-5 standard, to which end new units have been installed. A total of 19 units (Pressure swing adsorption (PSA), Diesel hydrotreatment (DHT), Hydrogen production (HPU), Isomerization, Naphtha splitter, Demineralized water and condensate recovery, Boiler water and steam production, Sulfur recovery, Sour water stripper, C4 hydrogenation, Methyl-tert-butyl ether (MTBE) production, Wastewater treatment, Nitrogen production, FCC gasoline hydrotreatment, Amine regeneration, LPG pretreatment, LPG alkaline treatment, LPG tank Farm, and Cooling water tower) will be installed and brought onstream.

A total of 22 main process units are expected to be in operation at HAOR upon the completion of the current phase. The bulk of the plant Utilities and Offsites (U&O) system will be modernized as well (up to 70%); besides, it is planned to alleviate environmental impacts by constructing a new wastewater treatment facility and a new flare system. The project also foresees the construction of a new lab, an electrical substation, a pipeline, cable lines, and tank farms.

The overall project will allow both supplying the national demand and ramping up the export potential in the 15-20 years to come. The project delivery will help optimize HAOR's expenses; some positive changes are also expected in terms of the environment. Transition to the Euro-5" standard will help reduce emissions from motor vehicles, as well as emissions of greenhouse gases.