Bloomberg News

Russia’s Lukoil Installs Coking Unit at Volgograd Refinery

November 16, 2011

(Run {BMAP News 5843 <GO>} to locate the refinery. Updates with company comment in second paragraph.)

Nov. 16 (Bloomberg) -- OAO Lukoil, Russia’s second-largest oil company, installed a coking unit at its Volgograd refinery to raise the quality of fuels it produces.

The petroleum coke produced in the unit will be sold to metals producers as a coal substitute, Dmitry Dolgov, a spokesman, said by telephone from Moscow. The unit, which can process 1 million metric tons a year, also makes gasoline components, according to a statement today.

Russia changed its export taxes last month, part of a government plan to spur companies to invest in the production of higher-quality refined products such as gasoline and jet fuel. The company plans to start output from a diesel hydrotreater at Volgograd next year, it said. Hydrotreaters remove sulfur and other impurities from fuels.

The Volgograd refinery, located southeast of Moscow, can process 221,000 barrels of crude a day, according to data compiled by Bloomberg. Russia’s largest oil company is state-run OAO Rosneft.

--Editors: Rachel Graham, Rob Verdonck

To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@bloomberg.net Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.


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