Azerbaijan to reduce oil transportation volume via Baku-Novorossiysk pipeline

Oil&Gas Materials 20 September 2011 13:59

Azerbaijan, Baku, Sept.20 / Trend, E. Ismayilov /

In 2012, the State Oil Company of Azerbaijan (SOCAR) intends to supply 6.6 million tons of oil to its own oil refineries compared to 6.4 million tons in 2011, SOCAR Vice-President on refining David Mammadov told journalists.

"Azerbaijani market observers note a growth in demand for oil products, and the increase in refining volume next year is due to the impending decline in oil transportation via the Baku-Novorossiysk pipeline in 2012," Mammadov said.

He said if this year the pipeline is planned to transport 2 million tons of oil, then next year - 1.7 million tons.

"According to the forecasts for 2011, a growth in consumption of oil products hit 5 percent, but in the first half-year it was 6.8 percent," Mammadov said.

He also stressed that at present the depth of refining at two Azerbaijani oil refineries is 93 percent, but the company has an opportunity to increase this figure. This will be possible after completing the program, which envisages an increase in the level of gasification in the country during 2012-2013. After implementing this program, fuel oil consumption in the country will decrease, which will create conditions to increase the depth of refining at the oil refineries.

Mammadov also said that SOCAR is keeping its plans regarding the initiation of gasoline and diesel fuel production in accordance with ecological standards Euro-3.
SOCAR plans to start output of Euro-3 diesel in 2012, and gasoline in 2013.