Rerefinery to be Built in Azerbaijan


Rerefinery to be Built in Azerbaijan
An aerial view of Sumgait Chemical Industrial Park in Azerbaijan. © Sumgait Chemical Industrial Park

Two Azeri startups are preparing to build a base oil rerefinery and a lithium battery recovery center, both of which will be located at the Sumgait chemical industrial park on the Caspian Sea, near the capital city of Baku.

The Agency for Development of Economic Zones, part of the Azerbaijan’s Ministry of Economy, recently issued a statement saying that Az-Kom Servis LLC, a new occupant in the park, will construct a base oil rerefinery able to produce solvent neutral 150, SN350 and SN500 base oils. The rerefinery will also produce bitumen and diesel.

The project is still in its early phase. Officials did not respond to questions or provide information about the project’s schedule, the plant’s capacity or the technology it will employ.

The battery recovery center is being built by Sakuraz Green Energy LLC, the agency said.

“Our mission is to ensure sustainable development of the non-oil sector in the country and to support entrepreneurship,” the Sumgait chemical industrial park stated on its website.

Sakuraz Green Energy will sell its products domestically and abroad, while Az-Kom Servis’ base oils will be sold on the domestic market. Some industry observers said this will benefit the country’s finished lubricant market, which was impacted by disruptions of base oil imports from Russia, caused by the war in Ukraine.

The imports of finished lubricants into Azerbaijan increased in 2022. The country consumes around 70,000 metric tons of finished lubricants annually, according to lubricant producer Technol.

Technol and Aminol are the only lubricant producers in the country, and both operate blending plants near Baku. Technol has capacity to make 50,000 tons of finished product annually. Aminol last year said its output reached 30,000 tons in 2021, and that it strives to increase its production to about 50,000 t/y.

Socar, a state-owned oil major, operates a 150,000 t/y of API Group I base oil plant, also near Baku.

Related Topics

Asia    Azerbaijan    Base Stocks    Conventional Base Stocks    Paraffinic Group I    Region    Rerefined