Novatek to build hydrocracker for 1 mln t in Ust-Luga, stop producing fuel oil
MOSCOW. Nov 3 (Interfax) - Novatek , a major Russian gas producer, plans to build a hydrocracking unit in Ust-Luga, company documents for the selection of a contractor to prepare the site indicate.
The documents do not specify when the unit will be built or its capacity.
Novatek CFO Mark Gyetvay said in late July that the company was close to making a positive investment decision on increasing the depth of refining at its Ust-Luga complex in order to process fuel oil into lighter oil products.
This project is expected to cost about 20 billion rubles and will be completed in 2019, he said, adding that the project could increase the netback by another 20% compared to the current margin of 25%.
The company told Interfax that the project is expected to increase production of kerosene, light and heavy naphtha and gasoil while reducing production of fuel oil.
The unit is expected to have capacity of up to 1 million tonnes, and the overall capacity of the complex, 6 million tonnes, will not change.