Gazprom Neft lets contract for Omsk refinery

PJSC Gazprom Neft has let a contract to RusTechnip, a joint venture of Technip SA and Rostec State Corp. subsidiary JSC Rustechexport, for a grassroots 8.4 million-tonne/year primary crude and vacuum distillation (CDU-AVT) complex at its existing 21.4 million-tpy Omsk refinery in Western Siberia, Russia.

RusTechnip, which also delivered front-end engineering and design (FEED) for the project, will provide engineering, procurement, and construction management (EPCM) services for the complex, Technip said.

While the service provider did not disclose a value of the earlier FEED contract, the company did value the EPCM services contract at €50-100 million.

Requiring an investment of 40 billion rubles, the CDU-AVT complex will include six sections, including a separate unit equipped to process 1.2 million tpy of stable gas-condensate (SGC), which will be used to boost production of Euro 5-quality gasoline, diesel, and jet fuels, Gazprom Neft said in a June release.

With contracts for supply of long-lead equipment such as distillation columns, compressors, and furnaces already awarded to major suppliers that include OAO Volgogradneftemash, Gazprom Neft said the first batch of large-sized column equipment for the CDU-AVT complex is due for delivery at Omsk this summer.

The company plans to decommission six aging units of the refinery’s previous generation of primary processing following startup of the complex, which is due to be commissioned by early 2019.

Designed with a number of technologies aimed at improving environmental performance of Omsk’s operations, the complex will include advanced sulfur-removal technology and continuous emissions monitoring, as well as a closed drainage system to redirect recoverable oil during processing to reduce releases of fuel oil.

The CDU-AVT also will meet the latest requirements for industrial safety by implementing the latest automated processing technologies and plant-monitoring systems, including alarms, video-surveillance cameras, and speakerphones, the company said.

This latest overhaul, which comes as part of Gazprom Neft’s phased program to modernize and upgrade its Russian refineries to improve processing capacities, oil conversion rates, energy efficiency, production quality, and environmental impacts by 2020, follows reconstruction and modernization of Omsk’s AT-9 crude distillation complex in 2015 (OGJ Online, Dec. 2, 2013; Apr. 27, 2015).

Other completed projects at Omsk include reconstruction of the refinery’s fuel oil deep-processing complex in December 2015 and reconstruction of a sulfuric acid alkylation unit during first-quarter 2016, according to Gazprom Neft’s most recent reports to investors (OGJ Online, Apr. 30, 2015).

Future plans

Gazprom Neft also is proceeding with construction of a deep oil refining complex at the Omsk refinery as part of the second phase of its modernization program, the company said.

The proposed 2 million-tpy complex will equip the refinery to increase production of light-end products such as Euro 5-quality diesel and jet fuels from heavy residues by more than 6%, as well as provide up to 250,000 tpy of raw material for production of high-performance lubricants, including Group II and III oils.

Once completed, the planned complex will use a combination of hydrocracking and sulfur-removal technologies to remove 99.8% of sulfur compounds from unfinished feedstock to produce finished products meeting the most stringent environmental specifications, the operator said.

A timeline for the project, however, was not disclosed.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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