Reconstruction of Khabarovsk Oil Refinery

Phase 1: 2000-2007

The atmospheric crude oil distillation unit and the vacuum module of the crude oil electric desalting and dehydration unit (ELOU-AVT) were renovated.

A light naphtha isomerization unit with production capacity of 100,000 tonnes per year was commissioned in early 2004. Production of Premium-95 and Super-98 gasolines (meeting the Euro-4 standard in basic parameters) was set up.

A railroad trestle for hermetically sealed loading of refined petroleum products with inert gas blanketing was put into operation in 2006  (the throughput was doubled, petroleum product evaporation rates were reduced). Flotation equipment was commissioned at the plant's treatment facilities to reduce the content of harmful substances in wastewaters.

Capital expenditures in phase 1 amounted to RUB 3 billion.

Phase 2: 2008-2014

The second phase was implemented in partnership with Shell, Foster Wheeler, Technip KTI (licensors) and Técnicas Reunidas (general contractor for the cracking and hydrotreater facility). The renovation was funded out of own resources, as well as facilities provided by Vnesheconombank State Corporation (with insurance provided by CESCE, the Spanish Export Credit Agency) and, since the end of 2013, the facility provided by Sberbank PJSC. The total capital expenditures in phase 2 amounted to USD 2.2 billion.

The catalytic reforming unit’s capacity was increased to 390,000 tonnes per year, and the isomerization unit capacity was increased to 125,000 tonnes per year.

The following facilities have been built:

  • hydrogenation facility - combined vacuum gas oil cracking unit (with 506,000 tonnes annual capacity), kerosene and diesel fuel hydrotreater (with 1,180,000 tonnes capacity);
  • visbreaker (with annual capacity of 750,000 tonnes) and vacuum distillation of fuel oil (1,800,000 tonnes per year);
  • hydrogen and sulfur pellets production units.

This resulted in:

  • increased crude oil refining capacity - from 4.35 to 5 million tonnes per year;
  • Nelson Complexity Index (describing the plant's technological sophistication) of 9.9;
  • 90% refinery yield;
  • increased premium gasoline production capacity - up to 600,000 tonnes per year. The refinery switched to production of Class 5 gasolines;
  • production of Class 5 diesel fuel and Jet A-1 fuel, as well as vacuum gas oil, was set up.

A delivery point for the Eastern Siberia-Pacific Ocean oil pipeline was built: the refinery was connected to Transneft's trunkline system.

An energy saving program and an environmental program have been implemented:

  • electric desalting and dehydration module (at the atmospheric crude oil distillation unit) was commissioned (which resulted in reduced energy consumption);
  • the electric power supply system was renovated; NPZ-2 substation and overhead power line were built (a reserve margin and additional opportunities for the development of Khabarovsk's infrastructure were created);
  • boiler houses were switched to natural gas (fuel consumption fell by two-thirds, sulfur dioxide emissions were reduced by 95%);
  • an enclosed ground flare system with zero emission combustion of gases and evaporations was constructed (removal of almost 99.9% of combustion products);
  • treatment facilities were renovated, and a new water pre-treatment unit was put into operation;
  • sealed tanks for petroleum product storage were commissioned (99% efficiency of the internal floating roof in reducing  evaporation of hydrocarbon compounds);
  • a midpoint 10 tank farm capable of storing 400 m3 of diesel fuel and fuel oil, with nitrogen blanketing (which prevents evaporation of hydrocarbon compounds) was put into operation.

Taxes payable by Khabarovsk Refinery to the federal and local governments have increased to approx. RUB 6billion per year.

Khabarovsk Refinery has created approx. 200 new jobs during 2009-2013. The average salary increased from RUB 26,600 to RUB 54,000, exceeding the average salary in Khabarovsk Krai by  40%.

Throughput at Khabarovsk Refinery
(thousand tonnes)

2000 - 2014

Alliance Oil Company