Black Sea Petroleum intends to invest 650 mln euros by 2029 to increase Kulevi refinery's capacity
BAKU. Oct 5 (Interfax) - The Georgian company Black Sea Petroleum (BSP) plans to invest 650 million euros in expanding the Kulevi refinery by 2029, according to information about the company's plans which it published in the Politico newspaper.
"Black Sea Petroleum has invested 200 million euros in the Kulevi Oil Refinery to date. A further 650 million euros is planned by 2029 to expand refining capacity and introduce new fuel production units," BSP said.
The company intends to increase annual refining capacity from the current 1.2-1.5 million tonnes to 4.5-5 million tonnes by 2028, it said.
In addition, the plant plans to commission units for the production of Euro-5 standard fuel by 2029.
"The planned product range includes petrol, diesel, jet fuel, liquefied petroleum gas, marine fuel and bitumen. These products would serve road transport, aviation, shipping and construction. Diesel and jet fuel would also place the expanded refinery in markets where the EU is a net importer. The investment programme is intended to support those exports while also meeting demand in neighbouring countries," BSP said.
Refining technologies and licensed process technologies from Honeywell (USA) will be used as part of the planned expansion, as well as automation systems and modular process units.
The design and construction of subsequent phases continue after the launch of the first phase in October 2025, BSP said.
As part of the expansion, BSP has already completed the construction of new tank capacities amounting to 40,000 cubic meters. Another 40,000 cubic meters of tank capacities are in the final stage of construction. They will make it possible to handle increased levels of oil and petroleum products as production grows.
According to BSP, the refinery currently processes oil of exclusively non-Russian origin. The Kulevi refinery received the second shipment of Libyan El Sharara crude in a month at the end of September, totaling 90,000 tonnes, the company said.
The vessel with oil arrived at the port of Kulevi on September 25, with the first shipment of Libyan oil delivered at the end of August, BSP said. Supplies are carried out under a long-term agreement. The second delivery of Libyan oil and the plans to expand the Kulevi oil refinery show how Black Sea Petroleum can contribute to the diversification of fuel supplies to Europe, the company said.
Black Sea Petroleum also said that it is establishing a company in Belgium and plans to open an office in Brussels in mid-October. "The office will give EU institutions and European business partners a permanent point of contact for discussions about the refinery and its investment plans," it said.
The Kulevi refinery is connected by four pipelines with a length of 3 km to the nearby port and terminal of Kulevi in the eastern coastal part of the Black Sea (near the village of Kulevi in the Khobi municipality), which are owned and managed by the State Oil Company of the Azerbaijani Republic (SOCAR). The pipelines are intended for transporting oil, naphtha, gasoil and fuel oil.
