REFINERY NEWS ROUNDUP: Smaller Russian plants cut runs

Spot crude oil demand inside Russia was heard to be lower than expected in December amid high domestic crude prices coupled with tumbling international product prices. Domestic crude retained fairly high prices as trading of spot barrels at fixed prices started when the Brent market was still strong.

Smaller and medium-sized refineries in southern Russia that buy crude on the spot market and are mostly export-oriented were concerned about falling product prices on the export markets and are expected to run at slightly lower rates this month, according to trading sources.

However, bigger refineries are processing normal volumes amid healthy margins and firm domestic demand. Buying activity typically picks up in December amid stockpiling for early January during the New Year holidays.

International travel restrictions are also likely to boost domestic driving demand.

Separately, Russia is encouraging refineries to increase their oil output through upgrades so that supply can meet domestic demand even at times of seasonal spikes, according to panelists at the annual forum of Russia's St. Petersburg International Mercantile Exchange, or Spimex. The measures encouraging upgrades are also aimed at smaller refineries, said Anton Rubtsov, Director of Oil Refining and Gas Complex Department at the energy ministry.

The energy ministry, earlier this year, signed agreements with a number of refineries envisaging compensation instruments for the upgrade or commissioning of 30 secondary processing units.

Russia's Ufa refinery complex has improved its environmental performance during recent maintenance, Rosneft said in a statement. The complex reduced emissions and energy costs as it improved insulation and processes.

The efficiency of the furnaces at the Novoil refinery improved by 11% and fuel gas costs were down 6%. The Novoil refinery restarted late November after works, while work on the other refineries in the Ufa hub was carried out this autumn.

NEW AND ONGOING MAINTENANCE

UPGRADES

LAUNCHES

Near-term maintenance

Existing entries

** Russia's Saratov refinery has deferred its planned maintenance to 2022, according to market sources. The refinery was planning works in October and November.

** The predominantly export-oriented Tuapse refinery, located on the Black Sea coast in southern Russia, is expected to carry out works starting around mid-November and lasting until January, according to sources. Previously, traders indicated the works were likely to start in early November.

** Kazakhstan's Atyrau refinery will defer its planned maintenance to avoid shortages on the domestic market, according to local media reports, citing the refinery. S&P Global Platts reported earlier that the plant was expected to defer its autumn maintenance to the spring of 2022, citing market sources. The refinery was expected to carry out a planned maintenance from mid September to mid October.

Upgrades

New and revised entries

** Gazprom Neft said it had completed the upgrade of the catalytic reformer at Omsk and is currently operating it in a test mode. The upgraded unit will enable the refinery to increase the output of high octane gasoline, as modern equipment has increased its capacity by 50%. Two new compressors have been installed and three have been upgraded of the upgraded L 35/11-600 catalytic reformer, the company said previously.

Gazprom Neft said it has successfully completed the construction of a delayed coker at Omsk. The delayed coker, along with a hydrocracker, the construction of which is anticipated to be completed in 2021, will form part of the deep crude oil processing complex of the Omsk refining complex.

Finalizing of the works in the deep processing complex in 2021 will increase the depth of processing up to 100%, the company said. The 2 million mt/year complex will enable the refinery to increase the depth of processing and regulate yields of gasoline, jet fuel and lubricants feedstock.

The company has also started assembly of electricity equipment at the catalytic cracker at Omsk as part of the unit's upgrade.

Omsk has also completed the installation of the main equipment at the primary CDU-VDU processing complex. The complex, with 8.4 million mt/year of capacity, will be completed in 2021, and will allow the refinery to take six outdated units out of service.

Separately, the refinery started a project to upgrade the AVT-10 primary processing complex, which has a capacity of 8.6 million mt/year. The project is due to be completed by the end of 2021.

** Russia's Moscow refinery has awarded a contract for two delayed coker heaters to Lummus Technology. The heaters will be used at the delayed coker, which is part of the deep processing complex, which will be completed in 2025.

The complex will also include a hydrocracker, equipment for which was recently delivered by Russia's Izhorski company.

The delayed coker, which will have a 2.4 million mt/year capacity, will enable the refinery to increase production of motor fuel and start producing petroleum coke. The 2 million mt/year hydrocracker, a sulfur production unit and a hydrogen unit are also part of the complex. The complex will enable the refinery to reach almost 100% depth of processing and halt the production of fuel oil.

Gazprom Neft's refinery has chosen Spanish engineering company Tecnicas Reunidas to construct the new delayed coker that is part of the complex.

It has also selected South Korean company DL E&C Co to participate in the hydrocracker construction.

** Russia's Novoshakhtinsky has started the construction of its gasoline complex. It aims to produce around 670,000-680,000 mt/year and construction is due to start in 2021. The complex is due for launch in Q1, 2024. It will process up to 894,000 mt/year naphtha. It will include a gasoline hydrotreater, an isomerization unit and a catalytic reformer and will enable the refinery to produce Euro 5 gasoline.

Separately, the refinery plans to launch a 1.8 million mt/year diesel hydrotreater in Q3 2024.

Recently, Russia's Glavgosexpertiza, the state construction and engineering auditor, approved the construction of a sulfur unit as part of the diesel hydrotreater complex. In Q1, 2027 it expects to launch a deep-processing complex, which includes a hydrocracker and delayed coker. It plans to launch an LPG production unit in Q1, 2023.

Following the completion of the upgrades, which are part of the third stage of upgrades, the refinery will be able to produce up to 3.2 million mt/year of diesel and 400,000 mt of petroleum coke.

** Russian oil company Tatneft said that its Taneco refinery plans to launch in test mode in December a gas fractionation, the second delayed coker and a diesel catalytic dewaxer.

The refinery will commission a record number of units this year since its launch 10 years ago, it said. In May, it launched a catalytic cracker that enabled it to increase gasoline production from 545,000 mt/year to 1.6 million mt/year. Its Euro 5 diesel output rose to 5.8 million mt. Taneco also launched a third hydrogen unit.

The units associated with the primary processing complexes ELOU AVT-6 and ELOU AVT-7 were split into two separate processing lines, which will secure a continuous operation of key secondary units.

Its capacity has increased to 16.2 million mt.

Separately, two new reactors for modernization of Russia's Taneco hydrocracker have been completed and shipped, said the producer of the equipment Russia's Izhorski plants. The refinery has a 2.9 million mt/year hydrocracker.

** Azerbaijan's Heydar Aliyev refinery will start production of Euro 5 diesel by mid-2022 and produce Euro 5 gasoline 92 and 95 RON by mid-2023, owner Socar told S&P Global Platts. The company said work on rebuilding the refinery was 85% complete and will be 90% complete by the end of this year.

Socar added that it was about to commission four new units at the plant: a gas flare, a steam generator, a demineralization unit and a cooling water facility.

Previously, Socar had said production of Euro 5 diesel and gasoline would start at the end of 2022 or early 2023, having pushed back start dates from the end of this year and early 2022 due to disruptions caused by the pandemic.

The ongoing work includes replacing all the units of the refinery except one, and in the process, increasing the capacity to 7.5 million mt/year from 6 million mt/year.

Existing entries

** Naftan refinery in Belarus will fully launch its new delayed coker in Q1'22. The unit was affected by a fire in the week ending Oct. 1, due to a diesel leak during testing. The delayed coker at Belarus Naftan was expected to be launched and produce its first batch of product by the end of this year.

Previously the complex was expected to come online in 2020.

Tests are underway at the new hydrocracker at Belarus Mozyr refinery. The hydrocracker, along with a hydrogen and sulfur units, is part of the H-Oil complex. The completion of the hydrocracker H-Oil complex at Mozyr will cut fuel oil output and increase light products. The complex, with feedstock capacity of 3 million mt/year, will increase its light products yield to 70% and depth of processing to 90%.

** Russia's Yaisky refinery is starting the third phase of its upgrade. By 2026, it plans to complete a dewaxing complex with 2.6 million mt/year capacity and a delayed coker with 1.34 million mt/year capacity. The commissioning of those complexes will increase its depth of processing to 93% and enable it to produce diesel with improved cold properties. Earlier this year, it completed the second phase of its upgrade, including a deep processing complex that enabled it to produce over 700,000 mt/year of Euro 5 gasoline. The complex includes a gasoline hydrotreater, isomerization and CCR unit.

** Russia's Rosneft and Italy's Maire Tecnimont have signed an agreement for building a VGO hydrocracker at the Ryazan refinery. The project involves the planning, equipment supply, construction and commissioning of the hydrocracker complex. It will enable the refinery to improve its margins through the conversion of heavy products into light products. The complex includes a hydrocracker, hydrogen and sulfur units. Separately, Ryazan is building a gas fractionation unit. The new unit will produce household LPG, isobutane, butane, and other products.

** The testing of the new FCC unit at Russia's Salavat has entered the final stage. It said previously it planned to launch the newly constructed unit in the second half of this year. The unit will enable the refinery to increase production of Euro 5 gasoline. It will replace two outdated units -- catalytic crackers 1 and 2 built in the 1950s.

** Russia's Orsk continues with its upgrades, including the construction of the delayed coker complex. It is currently receiving the equipment for the delayed coker complex. The refinery started building the delayed coker in Q3 2020 and plans completion in Q3 2023. Safmar plans to build new deep processing complexes at the Orsk refinery. They include a 1.2 million mt/year delayed coker and a gasoline dewaxer with 600,000 mt/year capacity. It also plans an upgrade of the hydrocracker complex and the isomerization unit which would increase their productivity by more than 15%. The hydrocracker is set for launch in Q3 2022. The refinery's depth of processing will increase from 76.7% to 98.1% by 2022-2023.

Separately the refinery is building a new unit for hydrotreatment of distillate products from the delayed coker unit. The unit can also be used for hydrodesulfurization of diesel from the primary processing units.

** Russia's Angarsk has started assembling the main column at the catalytic cracker complex. The assembly of the column is part of the refinery's upgrade. The GK-3 unit is aimed to process 130 mt/hr vacuum gasoil and 520 mt/hr desalted crude oil will produce over 43 components.

** Lummus Technology has been awarded a contract for two proprietary heaters that will be part of Russia's Kirishi upgrade. The heaters will be used "in the conversion of heavy oil residues, which would otherwise end up in fuels, to valuable lighter products," it said in a statement. The company's delayed coking heaters "can handle a wide range of feedstocks in refineries and upgraders for both fuel and specialty coke production." The award is complimentary to a delayed coking technology license awarded by the KINEF refinery in Kirishi to CLG, a joint venture between Chevron and Lummus, in 2018.

** Russia's Afipsky refinery has started to assemble the pressure pipelines in its hydrocracker complex. The deadline for completion of that part of the work is March 2022. Work is underway on the two most important parts of the complex -- the hydrocracking unit and the sulfur production unit. According to the Krasnodar regional administration, the hydrocracker is due for completion in 2023. Separately, the Afipsky refinery is planning the construction of a 1.6 million mt/year delayed coker. Safmar Group is reorganizing two of its refineries by merging the Krasnodar refinery to the Afipsky refinery in southern Russia. It aims to complete the process by the end of summer 2021 and will thereby retain the name Afipsky refinery. The Krasnodar refinery will specialize in primary processing and the Afipsky refinery in secondary processing.

** Lukoil will build a catalytic cracker complex at its Perm refinery in Russia. The complex will have 1.8 million mt/year feedstock capacity. It will include a catalytic cracker, as well as a high-octane gasoline components unit. The complex is expected to be launched in 2026 and will increase the output of high-octane gasoline. It will also allow the refinery to produce propylene to be used as petrochemical feedstock. Perm is also working on a deep processing complex which will increase the refinery's depth of processing. The project's timeline is 2020-25. The complex includes a catalytic cracker, diesel hydrotreater, hydrogen unit and alkylation unit.

** Russian oil company Lukoil started the construction of a polypropylene unit at its refinery near Nizhny Novgorod, also known as Norsi and Kstovo. The unit will use feedstock from the two upgraded FCC units with 4 million mt/year capacity. Nizhny Novgorod is completing the construction of a deep processing complex. It is due to be launched in the autumn and will allow the refinery to reduce fuel oil output by 2.6 million mt/year and increase 10 ppm diesel output by 700,000 mt/year. The refinery's depth of processing will reach 97% and the light products yield 74%. As a result of the launch, Lukoil's refineries' fuel oil output will be less than 4% and light products yield 75%. The deep processing complex includes a 2.110 million mt/year delayed coker; a diesel and gasoline hydrotreater, with 1.5 million mt/yr capacity; a hydrogen unit, with 50,000 Nm3/hour capacity; a gas fractionation unit, with 425,000 mt/year capacity; and a sulfur unit, with 81,000 mt/year capacity.

** Russia's Yanos refinery in Yaroslavl has started building a delayed coker complex. As a result it will fully halt fuel oil output. Its depth of processing will exceed 99% and light products yield -- 70%. Construction is scheduled for completion in 2024. The complex will be built in two stages -- initially a delayed coker will be built which will enable the processing of more than 3.4 million mt heavy fractions, followed by a naphtha hydrotreater and light gasoil coker. They will provide feedstock for gasoline and diesel.

** Russia's Komsomolsk refinery is planning to upgrade the ELOU AVT-3 primary processing complex.

The refinery is building a hydrocracker complex which will increase its depth of processing to over 92%.

The complex has 3.5 million mt/year capacity.

** Russia's Achinsk refinery will increase its depth of processing to over 95% and the light products yield to 88% upon completion of its upgrades, which will lead to the almost complete halt of fuel oil output. It is building a hydrocracker with integrated hydrotreater. Its launch will enable it to almost double the output of motor fuel aimed at covering domestic demand predominantly in Siberia and the Far East. It is also building a delayed coker complex.

** Russia's Ilsky is planning to launch a new gasoline complex, including a 1.5 million mt/year CCR and isomerization units, around the second half of 2023 which will enable it to produce high-octane gasoline components and gasoline meeting Euro 5 standards, LPG and xylenes. After launching the gasoline complex, it aims to start building a diesel hydrotreater, with construction likely to be completed in 2024.

** Uzbekistan's Bukhara will use Honeywell UOP technology to increase crude conversion and produce Euro-5 standard gasoline and diesel. Honeywell will provide "licensing and basic engineering design services" for a new naphtha hydrotreating, RFCC, SelectFining and Merox units. The existing diesel hydrotreater will be revamped. Uzbekneftegaz has decided to proceed with an upgrade of its Bukhara and Fergan refineries and put on hold building a new refinery in the Jizzakh region. Uzbekistan's Fergan refinery between 2020-2023 aims to commission hydrocracking process in a staggered way which will allow it to produce Euro-5 regular gasoline 92 RON as well as diesel.

** Russia's Rosneft is working towards launching the hydrocrackers that it has built at four of its refineries -- Achinsk, Komsomolsk, Novokuybishev and Tuapse. Russia's largest refiner is also completing the reconstruction of the hydrocracker at Ufaneftekhim, which was damaged in a fire in July 2016.

Rosneft is expanding the capacity of its existing delayed coker at Novokuybishev. Rosneft plans to complete its refinery modernization program by 2025. The program includes construction and reconstruction of over 50 units, with work on more than 30 of the units having been finished.

** Kyrgyzneftegaz plans to upgrade its Jalal-Abad refinery. Its strategy involves a unit for secondary processing of fuel oil.

** Kazakhstan's Pavlodar refinery is looking to build a unit for the purification of LPG and has selected a Merox technology.

** The launch of four secondary units at the Mariisky refinery has been delayed. As per plans, after upgrades it expects to increase the AT-2's capacity to 1.4 million mt/year from 900,000 mt/year and the VDU capacity to 1 million mt/year from 476,000 mt/year.

** The next stage of upgrades at the Antipinsky refinery in Russia involves increasing the capacity of crude and refined product pipelines. Antipinsky, which can process 9 million-9.5 million mt/year of crude, currently receives 7.5 million mt/year of crude.

** A delayed coker will be installed at the Turkmenbashi refining complex in Turkmenistan.

Launches

Existing entries

** Russia's Rosneft could launch a planned new refinery as part of its VNHK (East petrochemical complex) in the Far East in 2029 and a petrochemical plant in 2026. In August 2020, Rosneft CEO Igor Sechin told Russian President Vladimir Putin that Rosneft has shelved a plan to build a new refinery and petrochemical complex in the Far East due to changes in taxation, but can resume the project provided profitability can be guaranteed. Meanwhile, at a new meeting with Russia's President, Sechin said that one of the factors for carrying out the Far East project would be taking measures for stimulating the production of ethane and LPG. The Far East refinery is planned to process 12 million mt/year of crude, while the petrochemical plant will have 3.4 million mt capacity. The production will include 1.8 million mt gasoline, 6.3 million mt diesel and 4.5 million petrochemical products annually.

** A new refinery is planned to be launched in Georgia, at the Black Sea port of Kulevi, in 2024.

Construction of the 4 million mt/year plant is due to start in 2021. The refinery is expected to have 98% depth of processing and produce Euro 5 and 6 gasoline and diesel and thus reduce Georgia's import needs for oil products by 15%-20%.

** Russia's Khabarovsk refinery plans to build a second phase to the plant close to the existing site. The second phase would double the refinery's capacity to 10 million mt/year, and aims to cover gasoline demand in the far east of Russia. The company is seeking an investor in the Asia-Pacific for the second phase, which includes an FCC, hydrotreater and delayed coker.