SOCAR fully covers demand for gasoline in Azerbaijan
Baku, Azerbaijan, Nov.25
By Emil Ismayilov - Trend:
Azerbaijan's needs in gasoline are fully ensured at the expense of both internal resources and import, a source in the SOCAR company (State Oil Company of Azerbaijan), which is the only producer of oil products in Azerbaijan, told Trend Nov.25.
In 2014, SOCAR completely stopped production of AI-95 gasoline in order to satisfy the growing needs of the republic in the gasoline. The company switched to production of AI-92 gasoline, which accounts for most of the gasoline consumed in the country. Needs of the country in 95 octane gasoline are provided by import. SOCAR minimized the gasoline export from the country, and directed all volumes to ensure domestic needs.
The country's needs in AI-92 gasoline are fully covered by its own production facilities, and gasoline with higher octane numbers is imported into the country, according to the source.
In January-October, gasoline production in Azerbaijan dropped by more than 12 percent, while the consumption of this type of oil only in January-September increased by 5.6 percent, according to the State Statistics Committee.
Decrease in production volumes is due to the fact that work on the overhaul and update of multiple rigs was conducted in spring at Baku refinery named after Heydar Aliyev (focused on the production of light oil products). "The needs of the republic in the A-92 gasoline are provided, and the decline in production can be due to the work carried out this year at the plant," said the source.
Oil products are produced at two Baku refineries with a total capacity of 16 million metric tons of oil per year. Both plants are owned by SOCAR, which annually processes approximately 7 million metric tons of oil, extracted onshore and offshore at the expense of its own funds. Only last year, Azerbaijan produced 5.09 million metric tons of the main petroleum products. Azerbaijan will produce 6.22 million metric tons of oil products in 2015 versus 6.17 million metric tons projected for 2014, according to the government's forecasts.
Work on the reconstruction and modernization of the Baku Oil Refinery named after Heydar Aliyev, which is scheduled to be completed by late 2018 or early 2019, will ensure the production of gasoline with an octane rating of 95, the Vice-President of SOCAR (State Oil Company of Azerbaijan) on strategic development, the head of the new oil and gas processing and petrochemical complex (OGPC) Tofig Gahramanov said earlier. Work on the construction of 7 or 8 new plants that will produce high-octane components in order to produce AI-95 gasoline will be carried out at the refinery, besides the reconstruction work, he said.
The cost of reconstruction of the refinery named after Heydar Aliyev is estimated at 1 billion AZN, and it will be financed by public funds. Work on the reconstruction will increase its capacity from 6 to 8 million metric tons per year. Also, the gasoline production capacity will be increased to 3 million metric tons per year. The plant will continue its work for yet another 15 years, till the commissioning of a new refinery in Azerbaijan within the framework of the OGPC project in 2030.
The official exchange rate for November 25 is 0,7844 AZN / USD.