Oil Refinery

16.4

bln boe

of proved hydrocarbon reserves (SEC)

№3

globally among publicly traded companies by proved natural gas reserves under SEC

80

bcm of natural gas produced in 2021

10%

of total Azerbaijan natural gas production

Oil Refinery

The Gunashli Oilfield (Refinery) was founded in 1958 by the USSR Ministry of Oil Industry. Previously, the facility was known as the New Baku Oil Refinery, the “Azerneftyanag” Production Union, and the “Azerneftyanag” Refinery. Since April 22, 2004, the Gunashli Oilfield has been known by such name. The 21 out of 24 types of oil from Azerbaijan that are processed at the Gunashli Oilfield Refinery yield 15 different products. These include diesel fuel, aviation kerosene, gasoline, petroleum coke, and fuel oil. The primary source of domestic demand, it should be stressed, is the oil refinery.

The ED-AV-6 unit, the Catalytic reforming unit, the Coking unit, and the Catalytic cracking unit are the four primary units of the plant. The commissioning of these facilities took place in 1976, 1980, 1986, and 1993, respectively. The ED-AVQ-6 combination atmosphere-vacuum unit with additional blocks is used for the primary processing of oil in order to pre-desalinate the oil and re-expel the gasoline. The goods created here are delivered as raw materials to the “Azerikimya” PU’s Ethylene-Polyethylene Plant and other facilities. This factory also produces jet fuel under the TC-1 brand, which is then completed and distributed to customers.

The creation of high-octane components for automotive gasoline is made possible by the catalytic cracking plant, which has an annual capacity of 2 million tons. Additionally, the unit produces light phlegm, which is necessary for the production of diesel fuel, as well as goods for the “Azerikimya” PU (technical propane, technical butane, and dry gas). Stable platformate, a key ingredient in the creation of A-92 automotive gasoline, is produced by the catalytic reforming plant, which has an annual output of 1 million tons. Coke for export, dry gas for “Azerikimya” PU, coking gasoline, and light and heavy coking gas oil are all generated in the gradual coking unit. The refinery also contains two primary processing units, a new bitumen facility with a production capacity of 400,000 tons, a hydrotreated diesel and gasoline production unit, and more.

The facility processed more than 300 million tons of oil by 2017, and 6 and 5.9 million tons of oil, respectively, were processed in 2019 and 2020. However, it was determined to rebuild and upgrade the facility due to the facilities’ obsolescence and the rise in demand. The construction of new infrastructure for the protection of the environment and of human health has also gained significance. With the goal of increasing the refinery’s production capacity, reducing current costs, raising the quality of oil products to the “EURO-5” standard, and satisfying the demand for raw materials from the Gunashli Oilfield, the project of reconstruction and modernization of the plant is successfully being carried out.

The Gunashli Oilfield Refinery’s annual primary processing capacity will rise from 6 million tons to 7.5 million tons with the completion of the pipeline. The catalytic cracking unit’s production capacity should be expanded from 2 million to 2.5 million tons annually. The project is carried out in phases. The first phase of the project concluded in December 2018, and the new bitumen factory, with a production capacity of 400,000 tons annually, was placed into service, completely satisfying the nation’s demand in this sector. A liquefied petroleum gas (LPG) filling station has also been put into operation. After the first phase was finished, it was feasible to supply primary raw materials to Gunashli Oilfield’s steam cracking facility.

The plant’s current facilities will be replaced with new ones in the next phase. It is anticipated that engine fuels will abide by the “AVRO-5” specification by 2023. The first phase of the project concluded in December 2018, and the new bitumen factory, with a production capacity of 400,000 tons annually, was placed into service, completely satisfying the nation’s demand in this sector. A liquefied petroleum gas (LPG) filling station has also been put into operation. It was able to start supplying primary raw materials to Gunashli Oilfield’s steam cracking facility after the first phase was finished.

The plant’s current facilities will be replaced with new ones in the next phase. It is anticipated that engine fuels will abide by the “AVRO-5” specification by 2023. The first phase of the project concluded in December 2018, and the new bitumen factory, with a production capacity of 400,000 tons annually, was placed into service, completely satisfying the nation’s demand in this sector. A liquefied petroleum gas (LPG) filling station has also been put into operation. After the first phase was finished, it was able to provide “Azerkimya PU’s” steam cracking unit with primary raw materials. The plant’s current facilities will be replaced with new ones in the next phase.