Gazprom awards Omsk Hydrocracker FEED to CB&I
The Russian giant JSC Gazprom Neft (Gazprom) is planning to revamp and upgrade its existing Omsk refinery in Western Siberia, Russia.
After the successful completion of Gazprom Pancevo hydrocracker complex, in Serbia, the engineering company CB&I has been awarded the front end engineering and design (FEED) contract to add a new hydrocracker and refining units in Omsk complex.
With a capacity of 430,000 barrels per day (b/d), or 21.4 million tonnes per year (t/y) of crude oil, Gazprom Omsk Refinery is the largest in Russia and one of the largest in the world.
These last years this Omsk Refinery benefited from continuous improvements and program of investments in order to produce gasoline and diesel transportation fuels in line with international Euro 4 and Euro 5 standards.
As a result, Gazprom Omsk Refinery has been running at 98% total capacity in 2012.
Anyway Russia needs to increase its volume of production in transportation to meet the booming domestic demand.
Between 2009 and 2012, Gazprom contributed to this effort in increasing output by 30% from 33.4 million t/y to 43.3 million t/y with its five refineries.
Now Gazprom is setting an new target for 2020 at 70 million t/y or 1,400,000 b/d with more than 90% crude oil conversion depth at that time.
Such a leap can only be taken in building up new capacities close to existing infrastructures and proceed to the upgrade of the installed base.
Gazprom to phase up Omsk Refinery expansion project
In this perspective, Gazprom selected Omsk Refinery to proceed with additional investments to include new:
– Crude distillation unit and vacuum distillation unit (CDU/CVU)
– Delayed coking unit
– Advanced oil processing center with a vacuum gasoil hydrocracker, sulfur unit and hydrogen unit.
The project also covers to revamp the Omsk Refinery offsite facilities.
Requiring $3.5 billion capital expenditure, Gazprom intends to implement is program in two phases.
The phase-1 should take place between 2013 and 2015 to continue the modernization of Omsk Refinery supported by $1.5 billion capital expenditure.
The phase-2 is due to start with the installation of the new distillation unit (CDU/CVU) in 2016 followed by the decommissioning of three old generation crude oil processing units before adding the new delayed coking unit and advanced oil processing center in 2018 for no less than $2 billion capital expenditure.
As part of the advanced oil processing center, the gasoil hydrocracking unit will use the Chevron Lummus Global license.
In the same time Gazprom awarded the FEED contract to CB&I – Lummus.
With this new Omsk Refinery upgrade and revamping project, Gazprom will increase its production capacity of grade 5 transportation fuels and its crude oil conversion depth from the current 88.83% to 95.6% by 2020.
