Orsk Refinery Will Launch an Izomerization Unit in 2007

The company plans to build the unit as a part of the already existing 300,000 t/yr kerosene hydrotreater. Mr. Kasterin says that the jet output will not decrease after the project implementation. Launching the izomerization unit will not only improve the quality of motor  gasoline produced but will also increase its production to around 850,000 t/yr from 750,000 t/yr by refining 100,000 t/yr of naphtha at the unit.
The unit construction is a part of the refinery modernization program that will also include commissioning of a 800,000 t/yr catalytic cracker, a 1 mn t/yr vacuum gasoil hydrocracker and a 600,000 t/yr coking unit. The refining depth at the refinery is expected to rise to 92pc from current 61.5% after the reconstruction.
Orsk refinery modernization is to be finished by 2013, but according to Mr. Kasterin such terms are undesirable for RussNeft as fuel technical regulations corresponding to the requirements for motor fuels that comply with Euro-4 engine standards may be adopted as early as in 2010 in Russia.
‘As for diesel, we are sure to maintain our positions on the market. And the regulations requirements on aromatics content in gasoline – less than 35pc - having only a reformer and an izomerization unit at the refinery will be hard to comply to without cutting gasoline output’, - Mr. Kasterin said. In order to avoid the reduction in gasoline production RussNeft is now considering a possibility of speeding up the works in order to finish the reconstruction by 2010-2011.
The plant currently produces 350ppm sulfur diesel that meets the requirements imposed by the Moscow administration regulations motor fuels standards, which came into effect in the late 2004. Orsk refinery mainly supplies motor fuels supplies to Moscow, the Moscow and Orenburg regions.
This March it is planned to recharge the gasoil hydrotreater with a new catalyst. This will allow the refinery to reduce sulfur content in diesel to 50 ppm. Such product will comply with the fuel requirements for Euro-4 engines. According to Mr. Kasterin the plant will be able to start producing 10ppm sulfur diesel as well as early as in 2007. However, a decision on feasibility of its production has not yet been taken.
The majority of low-sulfur diesel producers face low demand for the product in Russia as there are no strict requirements for motor fuels quality in the country. Most of 50ppm sulfur diesel is currently being exported.
Orsk refinery exports around 10pc of its gasoline, up to 85pc of diesel and 70pc of fuel oil. The refinery’s oil products are mostly exported via the ports of Tuapse and Novorossisk at the Black sea.
Apart from the 6.6 mn t/yr Orsk refinery RussNeft owns a 75pc stake in 3.1 mn t/yr Krasnodar refinery (refining depth – around 59pc). Oil products from the plant are mainly exported through Tuapse and Novorossisk as well; 5-10pc the refinery production is supplied to the domestic market.
According to Mr. Kasterin, RussNeft is planning to reduce harmful regional environmental impact of the Krasnodar refinery in compliance with the agreement signed with the region’s administration. The company is not considering a possibility of the refinery modernization at the existing site within the city for now.
RussNeft is planning to refine 4.8mn t of crude this year at the Orsk refinery comparing to 4.7mn t in 2006 and 2.5mn t – at the Krasnodar refinery against 2.35 mn t.