Russian refineries have been reducing throughput in addition to carrying out maintenance -- planned or unplanned -- during the period of demand destruction being caused by the coronavirus pandemic, sources said.
Weekly gasoline output numbers - from the Central Dispatching Unit, the statistical arm of the energy ministry -- showed it fell 19% in the first week of April and another 3.6% in the second week.
Meanwhile, gasoline consumption in big cities was down 35%-50%, according to officials. Traders attributed the drop in gasoline production to the impact of refinery maintenance, but also to reduced processing.
A host of refineries carry out spring maintenance between April and June, with the scope of maintenance this year said to have been expanded in order to reduce output.
Refineries were also trying to amend their basket of products by increasing production of feedstocks such as naphtha, in order to avoid run cuts.
Russia ramped up measures to combat the virus in the last week of March, with Russian President Vladimir Putin initially announcing a paid non-working week throughout the country and then a non-working month.
Refineries in Belarus, Kazakhstan and Uzbekistan continue to operate normally.
Socar responded to changing demand due to the coronavirus pandemic by changing the product output balance at its Heydar Aliyev refinery in Azerbaijan but has not reduced overall production, a company official said. Socar said the refinery processed 1.542 million mt of crude during the first quarter.
Throughput of Belarus Mozyr refinery has not been affected following a fire incident, Belneftekhim said. The fire occurred late-last week following leak in the crude pipeline feeding the CDU, following a depressurization, but was quickly put out, according to the company and local media reports.
Near term maintenance
New and revised entries
--The Novokuybishev facility in the Samara refinery hub will carry out works on primary processing over April and May. It is due back on May 15.
--The Kuybishev refinery in the Samara refinery hub is due to halt for full maintenance from May 15.
--Russia's Komsomolsk refinery in the Far East will halt some units between May and June.
--Russia's Ukhta refinery will carry out full works in May and June. Lukoil had issued several tenders for cleaning the visbreaker and AVT (CDU-VDU) and AT-1 (CDU) primary processing units at Ukhta refinery.
--Russia's Perm refinery will carry out partial works in May-June. Lukoil has previously issued a tender for equipment to be supplied in the first half of 2020.
Existing entries
--Russian Astrakhan, which predominantly processes gas condensate and produces only light products, is expected to undergo full maintenance from May 10, according to trading sources. The works are due to last 45 days.
--Russia's Orsk refinery plans works on 11 units in 2020, the refinery said. According to trading sources works are starting in April. Its 2019 refinery maintenance scheduled included works on seven units and was completed in November. The units that underwent maintenance included CDU VDU ELOU-AVT-3, a visbreaker, isomerization, bitumen unit, as well as reformer, and diesel hydrotreater.
--Russia's Omsk refinery in Siberia is due to carry out partial works in April, according to trading sources.
--Russia's Khabarovsk refinery in the Far East is planning works in April, sources said.
--Russia's Salavat refinery plans maintenance works from April, the refinery said.
--Russia's Nizhny Novgorod (Norsi) refinery will carry out partial works over March-May, according to sources.
--Maintenance at Russia's Volgograd will be carried out in the autumn, sources said.
--Russia's Moscow refinery is set to carry out partial works, starting from end-March, according to trading sources.
--Maintenance at Russia's Yaroslavl refinery is planned for April-May, the refinery said in a statement.
--Russia's Ryazan refinery is expected to carry out works in April and May, on primary processing and reformer units.
--Refineries from the Ufa refining hub have works spread over the spring and summer months. Ufaneftekhim is undergoing works on primary processing, diesel hydrotreater, reformer between March and June. The Ufa refinery will carry out works on gasoline and diesel units in March and April, whereas Novoil is set to carry out works on diesel hydrotreater from mid March to mid April.
--Kazakhstan's Pavlodar next maintenance will be carried out this year.
Upgrades
New and revised entries
--Gazprom Neft has completed installation of the new delayed coker at its Omsk refinery. The 2 million mt/year unit will help halt fuel oil output, increase coke production and the depth of processing to 97% and light products yield to 80%. It will produce 38,700 mt/year of needle coke, which is used in the production of electrodes for the steel and aluminum industries. It is part of the deep processing complex at its Omsk refinery. The new delayed coker unit and upgrades to its existing coker are aimed for completion in 2021. In 2021, the refinery will complete the construction of a new diesel dewaxing and hydrotreating unit, with 2.5 million mt/yr capacity, which will replace two outdated units. Omsk has also completed the installation of the main equipment at the primary processing complex CDU-VDU. The complex, with 8.4 million mt/year capacity, will be completed in 2021, and allow the refinery to take six outdated units out of service. The refinery also completed the installation of equipment for the L 35/11-600 catalytic reformer, set for completion in 2020. Separately, the refinery started a project for the upgrade of the AVT-10 primary processing complex with 8.6 million mt/year capacity. The project is due to be completed by the end of 2021.
--Belarus Mozyr refinery is preparing for the launch of its new H-Oil hydrocracker, according to the country's Belta news agency. The equipment for the main feedstock pumps has been installed. The complex includes hydrocracker, hydrogen and sulfur units. The completion of the hydrocracker H-Oil complex at Mozyr will cut fuel oil output and increase light products. The quality of the fuel oil output will improve to less than 1% sulfur. The complex, with feedstock capacity of 3 million mt/year, will increase the light products yield to 70% and the depth of processing to 90%. Belarus Naftan has started testing the new delayed coker, while construction works are ongoing. The coker is expected to be completed and fully launched this year.
--Russian oil company Tatneft said it has launched a sulfolane process, which will enable it to produce feedstock for high octane gasoline components. The process is used typically to extract aromatics from reformate and pyrolysis gasoline. As a result the refinery will be able to increase Euro 6 gasoline output by 30,000 mt/yr and produce up to 45,000 mt/yr benzene-toluene fractions, which are high quality petrochemical feedstock. The refinery also recently launched a heavy gasoil hydrotreater. It has previously said that in 2020 it also plans to start testing middle distillates hydrotreater, catalytic cracker, hydrogen production and residue hydroconversion. The heavy gasoil hydrotreater removes sulfur from the gasoil from the coking process. Its capacity is 850,000 mt/year and will help produce desulfurized gasoil which can be used as IMO-compliant bunker fuel. The refinery's capacity has been increased to 15.3 million mt/year after the launch of a new primary processing complex in 2019 and it plans to process 11.5 million mt in 2020. In 2019 it processed a total of 10.794 million mt.
Existing entries
--Uzbekistan's Bukhara has launched the production of Euro 4 and Euro 5 diesel following its gradual modernization after installing a new catalytic system for the treatment of gasoil. It previously used to produce Euro 2 standard fuel. Uzbekneftegaz has decided to proceed with an upgrade of its Bukhara and Fergan refineries and put on hold building a new refinery in the Jizzakh region, it has said previously. Upgrade of Uzbekistan's Fergan refinery continues with a project for the construction of an isomerization unit which will enable the refinery to produce Euro 4 and 5 gasoline. It already produces Euro 4 and 5 diesel. Uzbekneftegaz along with Ernst&Young is realizing a project for increasing efficiency at its production assets including at the refineries at Bukhara and Chinaz. The project includes increasing utilization rates, reducing maintenance costs, increasing the period between turnarounds.
--Production of Euro 5 diesel at Azerbaijan's Heydar Aliyev refinery is expected to start at the end of 2021, a Socar official told S&P Global Platts. The official said the company's target was to start production of both Euro 5 diesel and Euro-5 standard A-92/95/98 gasoline at the end of next year but that the start date could slide to the beginning of 2022. All of the ongoing modernization work at the refinery is set to be completed on schedule by 2025, the official said. Previously Socar had said that Euro-5 diesel production would start by the end of 2020, with Euro-5 standard A-92/95/98 gasoline production starting in early 2021. The ongoing work includes replacing all of the units of the refinery except one and in the process increasing the capacity to 7.5 million mt/year from 6 million mt/year. Separately, the official confirmed that modernization work at Socar's Azerkimya ethylene and polyethylene plant is expected to be completed in the second half of this year, with production restarting by mid-year.
--Russia's Salavat will launch its new FCC in 2020, it said in an in-house magazine. The FCC will have feedstock capacity of 1.095 million/mt a year.
--The launch of four secondary units at the Mariisky refinery has been delayed, according to media reports. According to plans, after upgrades it expects to increase the AT-2's capacity to 1.4 million mt/year from 900,000 mt/year and the VDU capacity to 1 million mt/year from 476,000 mt/year.
--The modernization of Russia's Afipsky refinery has entered an active phase, the company said. It includes a hydrocracker, construction of which is underway. The complex, planned to process 2.5 million mt/year feedstock, is set for launch in the second half of 2022. In addition, the refinery plans to build a delayed coker.
--Russia's crude pipeline operator Transneft started sending Urals crude to the Ilsky refinery via the newly completed pipeline. It previously said shipments to Ilsky would start in 2019 and to the Afipsky refinery in 2020, both in Krasnodar region. The pipeline's capacity is 4.5 million mt/year and can potentially be expanded to 9 million mt/year. Deliveries to Afispky will start after completion of upgrades, scheduled for the fourth quarter of 2020. Of the pipeline's capacity, 3 million mt/year will be delivered to Afispky and 1.5 million mt to Ilsky. The trunk line can be connected to two main pipelines: Tikhoretsk-Novorossiisk-2 and -3 and thus can be connected to the Urals pipeline and to the pipeline delivering Siberian Light to Novorossiisk, increasing the flexibility of supplies.
--Russia's Orsk has started the second phase of modernization, a key of which will be a delayed coker complex. Its completion in 2023 will provide additional feedstock for the hydrocracker, which was brought online in 2018, as well as increasing the depth of processing to over 98% and the light products yield to 84%.
--The Yaisky refinery is working on a deep processing complex which will enable it to produce gasoline. The complex includes a gasoline hydrotreater, isomerization and CCR unit. It will produce over 700,000 mt/year Euro 5 gasoline.
--Ilsky refinery has five CDUs and is currently building another CDU, AT-6, with 3.6 million mt/year capacity, which will help increase its capacity to 6.6 million mt/year. It aims to launch the new unit in test mode around the end of 2020. Ilsky was planning a gasoline complex, including CCR unit, isomerization, gasoline hydrotreater, as well as distillate hydrotreater, hydrocracker and delayed coker.
--Russia's Rosneft reported progress of various upgrade projects. In Yaroslavl, owned by Rosneft and Gazprom Neft through Slavneft, a project has been approved for the construction of a deep processing complex. At the company's Achinsk refinery works are under way for reconstruction of the gas fractionation column of a crude distillation unit while at the Ufaneftekhim refinery continued the repairs of the hydrocracker following incidents. Russia's Bashneft, majority owned by Rosneft, has issued a tender for the reconstruction of the hydrocracker at Ufaneftekhim in late 2019. The unit has been damaged in a fire in July 2016.
--Russia's Moscow refinery will complete its modernization by 2023-24, when as part of the third phase it will halt the production of fuel oil and achieve 99% depth of processing. It aims to complete the second phase of modernization by 2021, launching the new Euro+ complex, the refinery's managing director Vitaliy Zuber said. It plans to complete the testing of the complex and take out of service the outdated units next year. Construction of the new complex, which includes hydro treating, catalytic cracking, a catalytic reformer and visbreaking units, started in 2016. It will enable the refinery to remove five outdated units from operation, built in the 1950s and 1960s. The Euro+ complex will increase the light products yield to 60% and will allow the refinery to double its jet fuel output.
--Russia's Novoshakhtinsky refinery, in Rostov region, is starting work on a new project aimed at production of Euro-5 gasoline, the regional governor said. Completion is aimed for 2027. The plant has a 5 million mt/year nameplate capacity and was launched in 2009.
--McDermott International said it was awarded an engineering, procurement and construction contract by Lukoil for the delayed coker at the Nizhny Novgorod refinery in Russia. The delayed coker, which will process 2.1 million mt/year of residues, will be part of a deep processing complex, including a delayed coker, a diesel hydrotreater, gas fractionation, hydrogen and sulfur units. The complex has been scheduled for a 2021 start-up.
--The next stage of upgrades at the Antipinsky refinery in Russia involves increasing the capacity of the crude and refined product pipelines. Antipinsky, which can process 9-9.5 million mt/year of crude, currently gets 7.5 million mt/year of crude.
--A delayed coker will be installed at the Turkmenbashi refining complex in Turkmenistan.
--Rosneft, Russia's largest crude producer, plans to complete its refinery modernization program by 2025. The program includes construction and reconstruction of over 50 units, with work on more than 30 of the units having been finished.
Launches
Existing entries
--A new refinery is planned to be launched in Georgia, at the Black Sea port of Kulevi, in 2024, according to media reports. Construction of the 4 million mt/yr plant is due to start in 2021, according to Fazis Oil, the reports said. The refinery is expected to have 98% depth of processing and produce Euro 5 and 6 gasoline and diesel and thus reduce Georgia's import needs for oil products by 15-20%.
--Russia's Khabarovsk refinery plans to build a second phase to the plant close to the existing site, according to reports. The second phase would double the refinery's capacity to 10 million mt/year, and aims to cover gasoline demand in the far east of Russia. The company is seeking an investor in the Asia-Pacific region for the second phase of the plant, which includes an FCC, hydrotreater and a delayed coker.
