SOCAR Group Downstream: A Major Player in Refining, Petrochemicals and Retail
What is socardownstream.az and why is it important?
Socardownstream.az is the website of SOCAR Downstream, a subsidiary of SOCAR Group, the state oil company of Azerbaijan. SOCAR Downstream is responsible for managing the modernization and reconstruction project of Heydar Aliyev Oil Refinery (HAOR), one of the two legacy refineries in Azerbaijan with a processing capacity of 400,000 barrels per day. The project aims to upgrade the refinery to meet the Euro 5 standards for petroleum products, as well as to establish an ecologically friendly environment. Socardownstream.az provides information about the mission, vision, activities, and achievements of SOCAR Downstream, as well as the career opportunities and contact details.
Socardownstream.az is important because it showcases the efforts and progress of SOCAR Group in developing its downstream sector, which includes refining, petrochemicals, retail stations, product logistics, and downstream gas assets. SOCAR Group is a major oil producing country in the Caspian region, with upstream and midstream activities that have traditionally dominated its asset base. However, SOCAR Group has also been expanding its downstream presence in recent years, both domestically and internationally, to diversify its portfolio and increase its competitiveness in the global oil and gas market.
SOCAR Downstream: A subsidiary of SOCAR Group
The mission and vision of SOCAR Downstream
SOCAR Downstream was launched in 2020 to manage the modernization and reconstruction project in Heydar Aliyev Oil Refinery (HAOR). The mission of SOCAR Downstream is to ensure the successful completion of the project within the planned budget and schedule, as well as to operate the refinery with high efficiency, reliability, safety, and quality standards. The vision of SOCAR Downstream is to become a leading downstream company in Azerbaijan and the region, with a modern management system, focused on operational excellence, customer satisfaction, innovation, and sustainability.
The main activities and projects of SOCAR Downstream
Modernization and reconstruction of Heydar Aliyev Oil Refinery (HAOR)
The modernization and reconstruction project of HAOR is one of the strategic projects of SOCAR Group, which aims to increase the processing capacity of the refinery from 6 million tons per year to 7.5 million tons per year, as well as to produce high-quality petroleum products that meet the Euro 5 standards. The project involves installing several new grass root process units, such as a diesel hydrotreater unit, a naphtha splitter unit, a continuous catalytic reformer unit, an isomerization unit, a gasoline hydrotreater unit, a sulfur recovery unit, a hydrogen production unit, a sour water stripper unit, an amine regeneration unit, a tail gas treatment unit, a flare gas recovery unit, a coke calcination unit, etc., as well as revamping existing units and upgrading utilities and offsites. The project is expected to be completed by 2023.
Operational excellence and corporate governance transformation
One of the main missions of SOCAR Downstream is to ensure the transformation to modern corporate governance and cultural change within the framework of the Operational Excellence Program with the deep involvement of international consultant companies. The program aims to improve the performance and efficiency of SOCAR Downstream in terms of production optimization, cost reduction, asset management, human resources development, health safety environment (HSE) management, quality management system (QMS) implementation, digitalization and automation initiatives, etc.
Other downstream assets and investments Other downstream assets and investments of SOCAR Group
Besides the modernization and reconstruction project of HAOR, SOCAR Group has also been expanding its downstream presence in other areas, both domestically and internationally. Some of the downstream assets and investments of SOCAR Group are:
A major petrochemical company based in Turkey, with a production capacity of 3.6 million tons per year of various petrochemical products, such as ethylene, propylene, polyethylene, polypropylene, PVC, etc. SOCAR Group owns 51% of Petkim Petrochemical.
A state-of-the-art refinery located in the Aliağa region of Turkey, with a processing capacity of 214,000 barrels per day of crude oil and condensate. The refinery produces high-quality petroleum products that meet the Euro 5 standards, such as diesel, jet fuel, naphtha, LPG, etc. The refinery is integrated with Petkim Petrochemical and provides feedstock for its operations. SOCAR Group owns 100% of STAR Refinery.
A storage terminal company that operates in Turkey and Georgia, with a total storage capacity of 1.9 million cubic meters for various petroleum products and chemicals. The company provides storage, blending, transshipment, and distribution services to its customers. SOCAR Group owns 100% of SOCAR Storage.
A petrochemical company based in Azerbaijan, with a production capacity of 184,000 tons per year of polypropylene and 120,000 tons per year of high-density polyethylene. The company uses modern technologies and equipment to produce high-quality polymer products for various applications. SOCAR Group owns 57% of SOCAR Polymer.
A petrochemical company based in Azerbaijan, with a production capacity of 300,000 tons per year of ethylene and propylene, 105,000 tons per year of polyethylene, and 88,000 tons per year of other petrochemical products. The company is undergoing a modernization project to increase its production capacity and quality standards. SOCAR Group owns 100% of Azerikimya.
A fertilizer plant based in Azerbaijan, with a production capacity of 650-660 thousand tons per year of urea. The plant uses natural gas as feedstock and produces high-quality urea for agricultural use. The plant is the first and only urea producer in Azerbaijan and exports its products to various markets. SOCAR Group owns 100% of SOCAR Carbamide.
A methanol plant based in Azerbaijan, with a production capacity of 650-700 thousand tons per year of methanol. The plant uses natural gas as feedstock and produces high-quality methanol for various industrial applications. The plant is the first and only methanol producer in Azerbaijan and exports its products to various markets. SOCAR Group owns 100% of SOCAR Methanol.
Gas Processing Plant
A gas processing plant based in Azerbaijan, with a processing capacity of 10 billion cubic meters per year of natural gas and 600 thousand tons per year of gas condensate. The plant processes natural gas from various fields in Azerbaijan and produces dry gas, gas condensate, propane-butane mixture (LPG), and sulfur. The plant supplies dry gas to the domestic market and exports LPG and sulfur to various markets. SOCAR Group owns 100% of Gas Processing Plant.
SOCAR Retail Stations
A branded retail station network that operates in Azerbaijan, Georgia, Ukraine, Romania, Switzerland, Turkey, and Moldova. The network consists of more than 1,400 retail stations that sell high-quality petroleum products and offer various services to customers. The network also includes CNG stations that sell compressed natural gas as an alternative fuel. SOCAR Group owns 100% or majority stakes in its retail stations.
A trading company that operates worldwide, with offices in Geneva, London, Singapore, Dubai, Houston, Calgary, Istanbul, Monaco, Lagos, Athens and Baku. The company trades crude oil and petroleum products from various sources and markets them to various customers. The company also provides risk management and logistics services to its clients. SOCAR Group owns 100% of SOCAR Trading
The benefits and challenges of socardownstream.az
How socardownstream.az contributes to the economy and environment of Azerbaijan and the region
Socardownstream.az is not only a website, but also a symbol of the development and diversification of the downstream sector of Azerbaijan, which has significant benefits for the economy and environment of the country and the region. Some of the benefits are:
Creating value-added products from crude oil and natural gas, which increases the export potential and revenue generation of Azerbaijan.
Providing high-quality petroleum products that meet the Euro 5 standards, which reduces the emissions and pollution from transportation and industry sectors.
Supporting the domestic demand for petroleum products and petrochemicals, which reduces the dependence on imports and enhances the energy security of Azerbaijan.
Creating employment opportunities and developing human capital in the downstream sector, which improves the social welfare and living standards of the people.
Enhancing the technological and managerial capabilities and innovation potential of the downstream sector, which fosters the competitiveness and sustainability of Azerbaijan.
Strengthening the regional cooperation and integration in the downstream sector, which promotes the stability and prosperity of the Caspian region.
How socardownstream.az faces the competition and risks in the global oil and gas market
Socardownstream.az is also a reflection of the challenges and risks that SOCAR Group and Azerbaijan face in the global oil and gas market, which is characterized by volatility, un