Azernews.Az

Friday March 29 2024

Shymkent refinery's modernization may be delayed

4 December 2015 16:56 (UTC+04:00)
Shymkent refinery's modernization may be delayed

By Aynur Karimova

The implementation of the project on modernization of Kazakhstan's Shymkent refinery may be delayed if oil prices not stabilized, Bolat Baetov, the Director of Production of Petro Kazkahstan, told Trend as part of the 19th annual CIS Downstream Week on refining, petrochemicals, petrochemical refining and petrochemical industry held in Baku.

Baetov noted that due to oil prices decreasing to nearly $40 per barrel, all countries dependent on oil revenues, including Kazakhstan, revise their budgets.

In November, Kazakh Energy Minister Vladimir Shkolnik did not rule out the possibility of postponing the completion of modernization of Pavlodar and Shymkent refineries due to funding problems.

Baetov noted that currently, the project is being implemented in accordance with schedule and all of the planned works have been completed on time. He also recalled that the issues related to the amount and sources of financing of the project have been already resolved.

The modernization of the Shymkent refinery consists of two stages. The first stage envisages the reconstruction of the diesel hydrotreater, construction of a sulfur production, which has already been completed, and construction of an isomerization unit.

Construction of an isomerization unit has been started, and it is planned to put it into operation in late 2016.

The second stage of modernization is expected to be completed in 2017.

The total cost of the project of modernization of the Shymkent refinery is $1.829 billion. The implementation of the project will increase the processing capacity of the refinery from 5.25 million to 6 million tons, the production of light oil products - from 61 to 89 percent, as well as bring the quality of products to the level of the requirements of Euro-4 and Euro-5 and reduce the volume of wastewater.

Kazakhstan has three major oil refineries - Atyrau, Shymkent and Pavlodar. All of them are being modernized.

Akmaral Kalmuratova, the Director of the Independent Centre of Expertise of Oil Products 'Organic', believes that modernization of three largest oil refineries in Kazakhstan will enable the country to refuse from importing quality fuel by bringing the local oil products into line with Euro-4 and Euro-5 standards.

'Organic' deals with certification of Kazakh oil refineries.

“Good cars requiring Euro 4 and Euro 5 fuel are popular in Kazakhstan,” she said during the 19th annual CIS Downstream Week on refining, petrochemicals, petrochemical refining and petrochemical industry.

She noted that currently, Kazakhstan has to import this fuel from Russia and China, since its refineries produce only Euro-2 fuel.

Kazakhstan plans to complete the modernization of oil refineries by 2017 after which the country can consider construction of the fourth large plant.

Kazakh oil refineries produced 3 million tons of motor fuel (gasoline, including jet fuel) in 2014, or 10 percent more than in 2013.

--

Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

Follow us on Twitter @AzerNewsAz

Loading...
Latest See more