After a busy summer turnaround season in Russia, which seemed to be winding down in August, more refineries are starting their autumn works.
The maintenance has boosted gasoline prices to record highs.
As a result of turnarounds, planned sales of oil products on Russia's St. Petersburg International Mercantile Exchange in September will be lower on the month.
Meanwhile, the volume of gasoline traded on Russia's St. Petersburg International Mercantile Exchange rose to 778,195 mt in August from 689,276 mt in July due to the longer month and as some refineries restarted following maintenance.
The Achinsk and Kuybishev plants emerged from maintenance over the course of August, while Taneco completed its maintenance in late July. Astrakhan, however, deferred its start-up to October. Later in August, the Ryazan refinery started maintenance after postponing it by few weeks.
In September, there are works at Ryazan, Angarsk, Komsomolsk, Taif, the Ufa group and Yaisky refineries. Astrakhan has extended its maintenance until Oct. 10 whereas Ukhta is due to carry out works from mid-September for around a month. The Surgut gas processing plant has meanwhile resumed sales on the exchange floor.
Spot prices of Russian crude oil for domestic loading and delivery by pipeline in September were more than Rb1,000/mt ($13.60/mt) lower month on month, mostly on the back of a weaker Brent market.
Demand was perceived to be good, with smaller and medium-sized refineries in southern Russia that buy crude on the spot market ramping up throughput due to lower crude prices against the background of improved products demand.
In other news, Russia's Kuybishev refinery has reduced its crude intake due to "unplanned reduction of crude processing," Russia's crude pipeline operator Transneft said Sept. 7. The refinery has also requested lower deliveries for the next two days. In late August the refinery completed its maintenance, which started in May, according to market sources.
Uzbekistan's Bukhara refinery has started producing high-octane gasoline 98 RON by adjusting its production mode, being the first refinery in the country to produce the gasoline grade.
In September-December it expects to produce 36,500 mt of 91 RON, 13,100 mt of 92 RON, 1,400 mt of 95 RON, as well as 14,900 mt Euro 4 diesel and 11,400 mt Euro 5 diesel.
Separately, Kazakhstan is considering extending the ban on the export of oil products via road, including gasoline and diesel, by six months. On May 9, a six-month ban came into effect on the export of gasoline, diesel and other products. Export bans have been introduced several times in recent years to ensure sufficient domestic supply, in the face of higher prices in neighboring Kyrgyzstan and Russia.
NEW AND ONGOING MAINTENANCE
New and revised entries
** Refineries in Russia's Ufa hub will halt sales of 95 RON gasoline on the St. Petersburg exchange from Sept. 20 due to maintenance, according to market sources. No further details were available.
** Russia's Surgut gas condensate processing plant resumed gasoline sales on the exchange floor early September. The plant started maintenance mid-July and was expected back around mid-August, but its restart was hindered by an incident at the Urengoy facility which supplies it with feedstock. The energy ministry has previously said the plant would resume production at the start of September. Supplies to the Surgut gas processing plant have been affected by a fire that broke out in early August at the Novy Urengoy facility that prepares feedstock for the plant. Surgut started works July 14 set to last until Aug. 10. It briefly resumed sales but suspended them following the incident.
** Russia's Astrakhan refinery, which predominantly processes gas condensate and produces only light products, has extended its maintenance until Oct. 10, according to market sources. The plant, which started works in May and was due back in August, initially extended maintenance to Sept. 10.
** Russia's Ukhta was due to start works in mid-September to last around one month. The refinery is not planning any sales of oil products on the St. Petersburg exchange in September.
** The Kazakhstan government is considering moving, or reducing the duration of, maintenance at the Pavlodar petrochemicals plant. Kazakhstan's Pavlodar refinery was due to carry out works in August. The planned maintenance at the Pavlodar refinery has been moved from the spring in order to secure domestic supply.
** Russia's Komsomolsk refinery resumed sales of diesel earlier in September after maintenance. The works were planned to to last between Sept. 1-10. The refinery continued meanwhile to sell gasoline and fuel oil on the exchange floor. Traders had previously said that it was planning works in August and September.
** Russia's Ryazan refinery started works in late August after postponing them for around two weeks. The refinery deferred works amid mounting concerns about gasoline shortages inside Russia which pushed prices to record highs.
** Russia's Omsk refinery is postponing works from September to October, in a move to secure sufficient gasoline supply.
** Russia's Taif refinery started planned maintenance Aug. 16.
** Russia's Angarsk refinery plans works in August which will last into September.
** Russia's Yaisky refinery will carry out maintenance work in September.
** Russia's Syzran refinery is planning a major maintenance in September, with the whole refinery affected, according to market sources.
** Russia's Salavat is planning another partial maintenance in the autumn.
** Kazakhstan's Atyrau refinery is expected to carry out a planned maintenance from mid-September to mid-October, according to media reports citing the energy ministry.
New and revised entries
** 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.
** Russia's Moscow refinery has started the construction of a deep processing complex, set to be completed in 2025, which will enable it to reach almost 100% depth of processing and halt production of fuel oil. The refinery will be able to produce additional volumes of gasoline, diesel and jet fuel. Gazprom Neft's refinery has chosen Spanish engineering company Tecnicas Reunidas to construct the new delayed coker which is part of the complex. It has also selected South Korean company DL E&C Co to participate in the hydrocracker construction. 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.
** Russia's Glavgosexpertiza, the state construction and engineering auditor, has approved the upgrade project for the Novoshakhtinsky refinery, clearing the way for launching its new gasoline complex in 2024. The complex will produce 92 RON and 95 RON Euro 5 gasoline and Euro 5 diesel. It aims to produce around 670,000-680,000 mt/year and construction is due to start in 2021. Separately, the refinery plans to launch in December 2024 a 1.8 million mt/year diesel hydrotreater. At the end of 2026 it expects to launch a deep-processing complex, which includes a hydrocracker and delayed coker.
Following the completion of all upgrades, the refinery will be able to produce up to 3.2 million mt/year of diesel and 400,000 mt of petroleum coke. The refinery completed a bitumen unit in 2014 and a second CDU in 2015, Glavgosexpertiza said.
** 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%.
Separately, the delayed coker at Belarus Naftan is 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.
Production is expected in Q4. In February 2020, the refinery started testing its new delayed coker, while construction works were ongoing. The new complex will enable the refinery to increase its depth of processing to 90% and the light products yield to 65% while decreasing the output of fuel oil. Upon its launch, the refinery will be able to fully cover the country's gasoline (up to 1 million mt/year) and diesel (up to 3.4 million mt/year) demand.
** Russia's Afipsky is planning to complete the construction of a hydrocracker in 2023. As a result it will be able to produce Euro 5 diesel. The refinery is currently processing 9 million mt/year of crude oil and plans to increase the light products yield to 82%. 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.
** 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.
** Russian oil company Tatneft will use the technology of Hungarian oil company MOL to build a unit for the production of resin-modified bitumen. The unit, with 25,000 mt/year capacity, will be commissioned around mid-2023. Taneco refinery is building a second delayed coker with 2 million mt/year capacity, residue hydroconversion and diesel hydrodewaxing.
** Gazprom Neft said it has completed the construction of a delayed coker in their Omsk refinery successfully. The delayed coker along with a hydrocracker the construction of which is anticipated to be completed in 2021, will form the part of deep crude oil processing complex of the Omsk refining complex. The 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 the yields of gasoline, jet fuel and lubricants feedstock.
Separately, the company has started assembling equipment for the new diesel hydrotreater and dewaxer unit at its Omsk refinery, whose construction is due to be completed in 2021. The unit will have 2.5 million mt/year of feedstock capacity and will allow the refinery to replace two outdated units. Separately, the company has started assembly of electricity equipment at the catalytic cracker at Omsk refinery as part of the unit's upgrade which aims at increasing the output of high octane components. The company had completed installation of the upgraded L 35/11-600 catalytic reformer. Two new compressors have been installed and three have been upgraded. Work had been due for completion in 2020. 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 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 Ryazan refinery has received equipment for the construction of the gas fractionation unit. The new unit will produce household LPG, isobutane, butane, and others.
** Russia's Salavat refinery plans to launch its new FCC in the second half of this year. Currently it is in testing stage. The FCC will have a feedstock capacity of 1.095 million mt/year.
** 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.
** 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 started building the delayed coker in Q3 2020 and plans completion in Q3 2023. Its 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 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.
** Renovation and rebuilding work on Azerbaijan's Heydar Aliyev refinery was delayed by the COVID-19 pandemic. Production of Euro 5 diesel and Euro-5 standard A-92/95/98 gasoline was originally planned by the end of 2021, and prior to that the end of 2020 for Euro-5 diesel and early 2021 for Euro-5 standard A-92/95/98. These dates were later pushed back to the start of 2022 due to the effects of the pandemic, with all work on the plant slated to be completed by 2025. 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. Work on the Azerkimya facility, which is supplied with feedstock by the Heydar Aliyev refinery, will raise production from 60,000 mt/year previously to around 175,000 mt/year.
** 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.
** 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.