NefteGazIndustriya lets contract for Russian refinery revamp

NefteGazIndustriya LLC, through a project developer, has let contracts to CB&I, Houston, to provide engineering and procurement services for the modernization of its 5.25 million-tonne/year Afipsky refinery in Krasnodar, Russia.

CB&I will deliver early detail engineering and procurement services for new process units included in the refinery’s modernization, a 2.5 million-tpy hydrocracker unit licensed by Chevron Lummus Global, hydrogen and sulfur units licensed by CB&I, and other associated units, CB&I said on Apr. 20.

A value of the contract was not disclosed.

This latest contract for the Afipsky modernization follows NefteGazIndustriya’s previous award of $90 million in contracts to CB&I for delivery of technology licenses and front-end engineering and design services for the project (OGJ Online, July 1, 2014).

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

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.

In addition to the hydrocracking, distillation, and visbreaking units, the high-conversion refining complex also will include a diesel fuel hydrotreater, NefteGazIndustriya said.

While NefteGazIndustriya has not revealed an official 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

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