Bloomberg News

Lukoil to Build Catalytic Cracker at Nizhny Novgorod Refinery

December 12, 2011

(Run {BMAP 85753 <GO>} to locate the refinery.)

Dec. 2 (Bloomberg) -- OAO Lukoil, Russia’s second-largest oil producer, is building a fluid catalytic cracker at its Nizhny Novgorod refinery that is a duplicate of one that started last year, a company official said.

“The project has been fast-tracked and is expected to be complete in 2014 or 2015,” Mikhail Antonov, director of refining for Lukoil’s Litasco subsidiary, said yesterday at the World Refining Association conference in Geneva.

The catalytic cracker will have a capacity of two million metric tons a year, or 40,000 barrels a day. “We are focusing on production of motor fuels,” Antonov said.

Russia, the world’s largest crude oil producer, experienced gasoline shortages earlier this year, which led to the government raising the export duty on the fuel from May.

The catalytic cracker at the Nizhny Novgorod refinery opened last year allowing it to produce of so-called Euro-5 standard gasoline in May. The refinery, which is east of Moscow, makes only Euro-4 and Euro-5 grade.

Euro-4 standard gasoline contains no more than 50 parts per million of sulfur. Euro-5 has a 10-ppm limit. A lower sulfur content reduces pollution.

--Editor: Rachel Graham, Raj Rajendran

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

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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