November 18, 2011 at 3:39 pm #2042
Design Set to Begin for New Cat-Cracker at Lukoil Refinery
by Russia & CIS Business and Financial Newswire
November 17, 2011
Lukoil (RTS: LKOH) plans to invest around 160 billion rubles in developing LLC Lukoil-Nizhegorodnefteorgsintez (the Kstovo refinery) until 2020, general director of the Kstovo refinery Alexei Kovalenko said at a meeting of two committees of the Nizhny Novgorod Region Legislative Assembly in Kstovo on Wednesday.
Investments in the enterprise’s development totaled 50 billion rubles in the years 2002-2011, he said.
The development program for the Kstovo refinery provides for a second cat-cracking facility, which is to be constructed over 3.5 years. Design is expected to begin in November, he said.
Commissioning the second facility will boost oil refining depth to 63%, Kovalenko said, adding that with the launch of the first cat-cracking facility in September 2010, refining depth rose from 41% to 52%. The first facility will bring the company additional pre-tax profit of 4.7 billion rubles per year.
Deputy Director for Economics and Finance of LLC Lukoil-Nizhegorodnefteorgsintez Pavel Logunov told journalists that the cost of constructing the second cat-cracking facility “is estimated at roughly 33.3% lower than the cost of the first,” on which Lukoil spent 30 billion rubles.
The second facility will not introduce sulfur and hydrogen production, since already purified vacuum gas oil will be used as raw material in the refinery’s production. The enterprise will be able to switch to its own raw material after a hydrocracking facility is commissioned, which the development program also provides for, Logunov said.
Commissioning the hydrocracking facility will lead to an increase in oil refining depth at the Kstovo refinery to 90%, Kovalenko said.
Lukoil’s overall program for its downstream business in the period to 2020 is estimated at about $24 billion, of which $20 billion will be invested in domestic oil refineries, Lukoil’s Senior Vice President Vladimir Nekrasov has said.
“Number two [catalyst cracking facility] will be just as big as the first. We will build it in three years. Its capacity will be 1.5 million tonnes of gasoline,” Nekrasov said.
“While before we planned the launch in 2020, now we will launch it in 2017. Its capacity will be 4.8 million tonnes,” he said.
The Kstovo refinery refines 17 million tonnes of oil per year.
Lukoil owns oil refining capacity in six countries, including its stake in the ISAB refinery in Italy and the TRN refinery in the Netherlands. The total refining capacity of all of Lukoil’s refineries was 71.5 million tonnes per year as of the end of 2010
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