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Lukoil picks Tecnicas Reunidas for upgrade project at Volgograd refinery

02.14.2013  | 

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.

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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 start-up operations.

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



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