Putting on the Shelf…

Oil refineries in Russia are postponing start-up of 17 oil re-refinery units. Putting of the oil re-refinery units into operation has been put off at Rosneft plants and at independent refineries – TAIF NK, Mariysky Refinery, Novoshakhtinsky Refinery and Afipsky Refinery.

A number of oil refineries – Rosneft, in particular – have issues with starting of 17 re-refinery units, stated Aleksei Aleshin, Head of Rostechnadzor, in the interview to RIA News.
“By now, 52 re-refinery units have become operational under four-party agreements. Construction and refurbishment of other 17 units, two of which were to be started in 2014 and 15 – in 2015, are not yet completed,” he said.
“These kinds of problems exist at Rosneft plants and at independent refineries – TAIF NK, Mariysky Refinery, Novoshakhtinsky Refinery and Afipsky Refinery,” Mr. Aleshin noted.
At the end of 2015, Rosneft declared fulfilment of the large-scale set of technical and process activities which let the company switch to production of motor petrol and diesel fuel for the Russian market of Euro-5 class only.
In 2011, the Federal Antimonopoly Service, Rostekhnadzor, Rosstandart and oil companies concluded agreements on refinery capacities construction and refurbishment programs covering shifting of refineries to production of higher class petrol. It was later reported that some companies failed to comply with the agreed terms, and that is why conversion to fuels of high environmental classes was repeatedly postponed. Just so, in 2015 it was resolved to extend the Euro-4 fuels turnover to six months in 2016.
The above-mentioned agreements stipulate for upgrade and construction of 99 non-deep raw processing units with processes improving motor fuel quality, and 37 raw hydrocarbons deep conversion units by 2020. Eleven oil re-refinery units were put into service in 2015, and start-up of 12 units is expected in 2016, as reported at the end of February.
Modernization of refineries in Kazakhstan is also ongoing with delays in achieving target dates. For example, modernization of Pavlodarsky Refinery is planned to be completed in 2017. The project cost is USD 697 million. Only 12% of capital investments have been absorbed.
The progress report of ROK Ministry of Energy for 2015 and the objectives for 2016 indicate that modernization of all three large refineries will be finished in 2017. Earlier it was planned to complete activities at all three plants in the current year.
Reconstruction of Atyrau Refinery is missing the schedule as well. The cost of construction is USD 2.05 billion. 36.1% of capital investments are spent. Completion of Shymkent Refinery modernization is also targeted for 2017. The project cost is USD 2.04 billion. Only 10.3% of capital investments have been absorbed.