Lukoil boosts production of high-octane blending components
Photo courtesy of Lukoil

Lukoil boosts production of high-octane blending components

Lukoil has commissioned the PENEX isomerisation unit at its Nizhny Novgorod refinery in the city of Kstovo, Russia, which will enable the refinery to produce high-octane blending components for petrol and increase annual production by 400 thousand tonnes. The complex’s annual feed rate amounts to 800 thousand tonnes. Cumulative investment in the project amounted to RUB12 billion (USD164.3 million). 

“Our government puts a lot of effort into enhancing quality of the fuels produced in Russia. This becomes especially important given the environmental track our country follows along with the world community. For instance, since 2016, Russia has been producing exclusively Euro-5 compliant petrol and diesel fuel. I would like to note that it took us three years to fully switch to environmentally-friendly fuels, while in other countries the process took on average 15 years,” said Alexander Novak, deputy prime minister of the Russian Federation. 

Novak, together with Presidential Plenipotentiary Envoy to the Volga Federal District Igor Komarov, Governor of the Nizhny Novgorod region Gleb Nikitin and President of Lukoil Vagit Alekperov took part in the commissioning ceremony on June 18.

“Lukoil’s ability to balance commercial interests and high level of corporate social responsibility is a great example for others. Volga federal district houses facilities of every step of petrochemicals production: from crude production to high added value refining. Commissioning of this isomerisation unit will increase efficiency of downstream operations,” said Komarov. 

Nikitin also pointed out Lukoil’s contribution to the region. 

“Lukoil’s share in the region’s industrial production amounts to 19%. The company is one of the major taxpayers and our main partner in implementing social programmes in healthcare, culture, development of the city and municipality of Kstovo,” he said.

“Lukoil increases production of high-octane petrols which are currently in high demand, thus meeting the challenge of providing Russian consumers with high-quality fuels. The launch of this unit means we have fully and in time fulfilled the responsibilities we took up under the four-way agreement with Federal Antimonopoly Service, Rostechnadzor and Rosstandard,” said Alekperov. 

Another major investment project at the refinery has also been completed. The launch a Petroleum Residue Recycling Facility will allow the refinery to reduce its annual fuel oil output by 2.6 million tonnes and increase annual Euro-5 diesel fuel output by 0.7 million tonnes. The refinery yield will thus increase to 97%, with light products yield reaching 74%. Implementation of the project will lower Lukoil Group’s total fuel oil output to less than 4% and increase light products yield to 75%.