26.07.2005 Odessa Refinary Upgrade

LUKOIL COMMENCES A WIDE-SCALE UPGRADE OF ODESSA REFINERY

 

Management Committee of OAO "LUKOIL" took a decision to commence a wide-scale upgrade of the Odessa refinery.

 

The upgrade project will basically include construction of a catalytic cracking complex and a power-generating plant as well as facilities for hydrotreatment of gasoline and vacuum gas oil, production of hydrogen, sulfur and petrol high-octane components. The diesel fuel hydrotreatment complex, automatic vacuum pipe still and general utilities will also be upgraded. Total amount of the investment into the project is estimated to be around US$320 million. The upgrade program is scheduled for three years.

 

It is expected that the level of refining will grow from 57% to 80% and the light oil products production share will increase from 43% to 65% as a result of the upgrade provided that the refinery annual throughput remains at 2.8 million tons. Yearly production of the high-octane gasoline will presumably double to reach about 740 thousand tons and the Euro-3 diesel fuel annual output will likely be around 960 thousand tons. Production of Jet A-1 aviation kerosene will also be launched in compliance with international standards.

 

Total investment in to the economy of Ukraine related to the Odessa refinery upgrade project will sum up to US$500 million including further expansion of the retail petrol service stations network.