Moscow Refinery Getting New Hydrocracker Unit

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GALWAY, IRELAND--March 24, 2021--Written by Martin Lynch, European News  Editor for Industrial Info (Galway, Ireland)--Gazprom Neft (St. Petersburg, Russia) is forging ahead with plans to construct a new hydrocracker at its Moscow refinery.

The company has agreed to a preliminary contract with South Korea's DL E&C and its Russian subsidiary, Daelim RUS, to provide a number of construction services on the project. DL E&C's engineering design and procurement services (EPC) and Daelim RUS will oversee the procurement and construction of the new unit. The project at the 12 million tonne-per-year Moscow refinery will see the construction of a 40,000 barrel- per-day (BBL/d) VGO hydrocracker unit to reduce sulfur content in fuels. The contract is valued at an estimated $285 million and the work is expected to take 42 months when it kicks off in the coming months.

The hydrocracker unit is part of a much larger modernization project at the Moscow refinery. It forms part of the new KGPN (Deep Oil Conversion) Complex at the refinery to reduce sulfur content in fuels and increase fuels standard. Industrial Info is tracking projects for a new sulfur recovery unit, delayed coker and hydrogen units as well as the expansion of supporting offsite utilities. The projects are worth a combined $170 million.

Gazprom Neft has undertaken a major program to modernize its Moscow and Omsk refineries, with a total planned investment of more than $9.5 billion by 2025. The refineries have seen the construction and reconstruction of key technological facilities that have allowed both facilities to transition to the production of Euro-5 fuels, improve energy efficiency and meet environmental standards. Projects underway at both plants will increase refining depth and light product yield. Industrial Info has been tracking all of the major Omsk Refinery projects that form part of the second phase of modernization with a combined investment value of more than $800 million.

Last July, Gazprom Neft launched its Euro+ combined oil refining unit (CORU) complex at the Moscow Refinery. Costing $1.3 billion, the complex boosts the yield of light-end, Euro 5-quality petroleum products, including gasoline, diesel and aviation kerosene. Following full commission, the company plans to begin the immediate decommissioning of five obsolete, earlier-generation installations at the refinery.

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