October 26, 2010 at 5:22 pm #2487
Russia launches first big post-Soviet oil refinery
* Plant to process 140,000 barrels per day
* First sizeable plant to be built since Soviet era
* Modern units promise large yield of high value fuels
By Alexei Anishchuk
NIZHNEKAMSK, Russia Oct 26, 2010 – President Dmitry Medvedev on Tuesday launched the first major new Russian oil refinery since Soviet times, the 140,000 barrels per day first phase of a three-part complex in the oil-rich region of Tatarstan.
Medvedev pressed a symbolic red button to launch the first phase of the refinery, built at a cost of nearly $6 billion.
The project will expand to include a deep conversion facility to process Tatarstan’s heavy, sour oil into more valuable refined fuels, and a petrochemical plant in Nizhnekamsk, a town 1000 km east of Moscow.
Russia, the world’s largest oil exporter, tries to encourage its oil producers to refine more of their output to squeeze more value out of its hydrocarbon wealth and create jobs.
Russian oil companies get tax breaks on the barrels they sell as refined products rather than crude oil. But Russian oil companies prefer largely to concentrate on modernising their relatively unsophisticated refineries than building new ones.
The only new crude distillation capacity to come on line in recent years has been at so-called “samovar” refineries, the Russian equivalent of China’s little “teapot” refineries.
Medvedev in February reacted in shock to an industry report suggesting 200 such mini-refineries had been built in Russia in recent years. Only about a third of these were even registered.
“There is work that still needs to be done, but this is a very important part of the technological cycle,” Medvedev said at the ceremony.
Khamza Bagmanov, CEO of Taneko, the oil refining subsidiary of Tatneft , which operates the project, declined comment on the completion dates for later phases.
Taneko said in a statement that the plant will operate at a 97 percent conversion rate, exceeding the 72 percent average in Russia, where a lack of upgrading capacity means yields of high value products tends to be low.
The second phase, the deep conversion unit, will include two Russian built hydrocrackers, which convert low-value heavy residues into higher value gasoline and diesel.
October 26, 2010 at 5:24 pm #5449
Here is update on Russia TATNEFT/TAIN-FK Tatarstan Petchem / Refinery (&Coker) Expansion project.
Not sure I follow that the fist phase (140MBD crude exp) of 3 phase (coker/heavy oil upgrade is Phase 2) project is being “launched”. This project has always been billed as Continuous Expansion over 7 years for capacity & capabilities.
Tatarstan celebrated the commisioning of Petchem expansion completion in Sept 2008 for Polyproplyene plastic production (0 to 600 kmtpy from 2003-2009) and also refinery completion of MTBE unit & upgrade diesel and gasoline to meet Euro 4 specs – the first of Russia’s 27 refineries to do so.
Foster Wheeler did the FEED and was awarded the Coker Technology license in Sept 2006, and later Fluor was awarded the EPC for the project. This update does not mention any details for the deep conversion stage of the project.
Included in article was “Samovar Refineries” which appears to be Russian version for equivalent China’s little/simple “Teapot Refineries” which were to be closed for environmental reason but are still operating – often using black market crudes like Iran’s.
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