“The agreement covers the design and licensing of major oil refining facilities, which is a historic step forward for both the company and the development of Georgia’s energy sector,” said a press release issued by BSP today and quoted by NewsGeorgia.
According to the agreement, Honeywell will provide BSP with process licenses, basic engineering, specialized equipment and catalysts. This will enable Kulevi to produce jet fuel, gasoline, diesel and marine fuel in accordance with international standards.
In the next stages of cooperation, the parties plan to introduce petrochemical technologies and deep refining solutions to increase efficiency and refining depth.
“By developing local production, we are reducing dependence on imports and significantly strengthening Georgia’s energy security and independence,” BSP said.
State investment and Honeywell technology
The refinery under construction in Kulevi is one of the largest industrial projects in the country. It is being realized with the participation of the state Development Fund of Georgia and Kartu Bank, owned by Bidzina Ivanishvili, the founder of the ruling Georgian Dream party.
The first phase of the refinery envisages processing of up to 1.2 million tons of crude oil per year with subsequent expansion of capacity up to 4 million tons. The total budget of the project is estimated at $600 mln.
Honeywell is an American industrial and technological conglomerate operating in the spheres of aerospace technologies, industrial automation and digital solutions. The company cooperates with major energy players around the world and supplies control, monitoring and analytics systems widely used in the oil and gas industry – from production to refining and transportation.
A path through sanctions
The signing of the agreement with Honeywell was announced against the backdrop of media reports about possible EU restrictions on the port of Kulevi as part of a new package of sanctions against Russia.
As Logos Press previously wrote, the European Commission document notes that the port of Kulevi “is used for maritime transportation of crude oil or petroleum products produced in Russia or exported by Russian vessels, using irregular and risky methods of transportation.”
Georgian Prime Minister Irakli Kobakhidze said that Tbilisi is ready to provide detailed information on the issue and is confident that nothing contrary to the sanctions policy is happening at the port.
