19 Nov 2018 16:31

Gazprom Neft to maintain to maintain sales of fuel on the exchange, despite accident at Moscow Refinery

MOSCOW. Nov 19 (Interfax) - Gazprom Neft will maintain its presence on the exchange in the volumes determined by regulators, the company said in a statement.

"At the present time an expert analysis is being conducted of damage to the catalytic cracking unit, based on which an estimate on the timeline of repair works will be made. Other refinery facilities were undamaged. The refinery is operating in routine fashion and is continuing fuel deliveries. If necessary, volumes will be transferred from other refineries to supply the Moscow market. All exchange contracts are being executed in full. The company will maintain its presence on the exchange in the volumes determined by the regulator," the statement said.

Substantial reserves of fuel have been formed in the market, the Moscow Refinery said, citing data from the company INFOTEK-Consulting. As of November 15, they exceed 1.3 million tonnes, up 100,000 tonnes since the start of November.

"According to expert forecasts, in November the production of gasoline in Russian will exceed demand by approximately 200,000 tonnes, excluding the repair works at the Moscow Refinery catalytic cracking unit. According to preliminary forecasts, production reductions at the Moscow Refinery will not exceed 40,000 with regards to automobile gasoline," the statement said.

A fire at one of the sections of the Moscow Refinery's catalytic cracking unit took place at 7:20 a.m. Moscow time on November 17. The unit's operations were shut down by the automated industrial safety system. Fire brigades from the Moscow Refinery and the Ministry of Emergency Situations promptly arrived on the scene. By 11:00, the fire was fully put out, with no one hurt. The catalytic cracking unit is responsible for producing gasoline. The fire was caused by a burn-out of the heater coil of the catalytic cracking unit, according to a report by the situational analytical center of the Russian Energy Ministry.