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Modernization of refinery in Kazakhstan may be delayed

Star oil refinery to be commissioned in April 2018 (28 November 2016 20:46)

Date: 4 December 2015 16:12

Baku, Azerbaijan, Dec. 4

By Elena Kosolapova – Trend:

The implementation period of the modernization project of the Shymkent refinery in Kazakhstan may be postponed, if oil prices don’t stabilize, Production Director of the PetroKazkahstan Oil Products Bolat Baetov told Trend at the 19th Annual Conference “CIS refining and petrochemical week” in Baku.

Baetov said that as a result of falling oil prices to the level of nearly $40 per barrel, all countries that depend on oil revenues, including Kazakhstan, revise their budget.

In November, Kazakh Energy Minister Vladimir Shkolnik said that he doesn’t rule out the possibility of postponement of the completion period of modernization of the Pavlodar and Shymkent refineries due to funding problems.

At the same time, Baetov said that at present, the project is being implemented on schedule and all of the planned work has been completed on time. He also said that the questions regarding the amount and sources of financing for the project of modernization of the refinery have been resolved.

Baetov said that the modernization of the Shymkent refinery consists of two stages. The first stage involves the reconstruction of the diesel hydrotreater unit, construction of a sulfur production unit, which have already been completed, and construction of an isomerization unit.

“Now commissioning work is being completed at the sulfur production unit with capacity of 4,000 tons, and I think that the state commission will sign the act of the acceptance of the object until the middle of December,” he said.

Construction of an isomerization unit began, and it is planned to be commissioned in late 2016.

The second phase of the modernization at the plant is scheduled for completion in 2017, said Baetov.

The total cost of the project for modernization of Shymkent refinery is $1.829 billion. The implementation of the modernization project will allow to increase the plant’s processing capacity from 5.25 million tons to 6 million tons, production of light oil products – from 61 percent to 89 percent, bring the quality of products into line with Euro-3 standards and reduce the volume of wastewater, according to the message from Shymkent refinery.

Three large refineries – Atyrau, Shymkent and Pavlodar – operate in Kazakhstan. Modernization is held on all three refineries.

As a result of the modernization of refineries, manufacturing of light oil products will increase in Kazakhstan: high-octane gasoline will increase more than twice, diesel fuel - by 20 percent, aviation fuel - twice. At the same time, all products will comply with the environmental requirements of the K4, K5 classes of the Technical Regulations of the Customs Union (K4, K5 are analogous to the European standards Euro-4 and Euro-5, approved in the countries of the Customs Union).

Previously, KazMunaiGas - Processing and Marketing JSC reported that the modernization of three major Kazakh oil refineries will provide domestic markets of the country with own petroleum products (fuel and lubricants) up to 2023-2025.

In 2014, Kazakh oil refineries produced 3.020 million tons of motor fuel (gasoline, including aviation), which is 10 percent more than the previous year.

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