By JAMES MARSON
MOSCOW -- OAO Lukoil has signed a $1.4 billion contract with
Tecnicas Reunidas to upgrade its Volgograd refinery, Russia's No. 2 oil
producer said in a statement Thursday.
Lukoil and Tecnicas Reunidas will construct a vacuum gasoil
light hydrocracker unit with an annual capacity of 3.5 million
metric tons and up to 75% conversion ratio, a combined sulphur
production unit and hydrogen production facilities at the refinery that is about 1,000
kilometers south of Moscow.
Tecnicas Reunidas will provide detailed engineering, supply
materials and equipment, construct the complex and support
The project is scheduled to be completed
by the end of 2015. The work will increase the refinery's output of Euro-5 diesel
fuel by 1.8 million tpy.
Russian oil firms are upgrading their refineries to comply
with regulations requiring higher-quality fuels.
Dow Jones Newswires