Russia’s NefteGazIndustriya advances refinery modernization

NefteGazIndustriya LLC, through a project developer, has let a contract to CB&I, Houston, to provide equipment for work related to the modernization of its 5.25 million-tonne/year Afipsky refinery at Krasnodar, Russia.

CB&I will provide detailed engineering, procurement, fabrication, and supply of a steam methane reformer for a large-scale hydrogen plant and hydrocracking heaters, as well as Lummus Advanced Breech-Lock heat exchangers, CB&I said.

Licensed by CB&I subsidiary Lummus Technology Inc., Breech-Lock exchangers feature a closure-system design that enables reliable sealing of high-pressure, high-temperature fluid flows, easy dismantling for inspection and reassembly, avoidance of high-stressed zones in pressure parts, and flexibility for retightening inner seals during unit operation, according to the service provider’s web site.

The value of the contract exceeds $90 million, CB&I said.

This latest contract follows a series of previous contract awards to CB&I for work related to Afipsky’s revamp.

Last year, NefteGazIndustriya let a contract to CB&I to provide technology and front-end engineering and design (FEED) services for multiple process units involved in the modernization, including a 2.5 million-tpy hydrocracker unit licensed by Chevron Lummus Global, as well as CB&I-licensed hydrogen and sulfur units (OGJ Online, July 1, 2014).

CB&I also will provide technology and FEED services for a crude distillation unit, vacuum distillation unit, and visbreaker that will utilize the Shell Soaker Visbreaking technology jointly licensed by CB&I and Shell.

Earlier this year, the Russian refiner contracted CB&I to also deliver detail engineering and procurement services for the hydrocracker, hydrogen and sulfur units, and other associated units included in the revamp (OGJ Online, Apr. 20, 2015).

The revamp project

Designed to increase the refinery’s processing capacity and oil conversion ratio in order to improve product quality, the three-phased Afipsky modernization project will include the expansion and renovation of the existing refinery as well as the construction of a high-conversion refinery at the site.

Stage 1 will involve the expansion of current production installations to increase the refinery’s crude oil processing capacity to 6 million tpy and to optimize feedstock supply logistics.

Stage 2 of the project will include building a high-conversion refinery in order to lift the site’s oil conversion ratio to 82% and boost production of products with specifications that meet requirements of the Technical Regulations of the Customs Union of Russia.

A third and final stage of the modernization will involve construction of a delayed coking unit designed to increase the complex’s oil conversion ratio to 93% and maximize production of both Euro 5 diesel fuel and light oil, NefteGazIndustriya said.

Alongside the hydrocracking, distillation, and visbreaking units, the high-conversion refining complex also will include a diesel fuel hydrotreater, according to the Russian refiner.

While NefteGazIndustriya has yet to reveal a detailed timetable for the project’s completion, the company has said it plans to begin production of Euro 5 diesel and vacuum gas oil at Afipsky during 2015.

Contact Robert Brelsford at

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...