Novatek launches hydrocracking unit at Ust-Luga for 50 bln rubles

MOSCOW. June 14 (Interfax) - Novatek has launched a hydrocracking complex at the port of Ust-Luga on the Baltic Sea, which was built as part of an agreement between the company and the Russian Energy Ministry on constructing new processing facilities, an Interfax correspondent reported from the launch ceremony.

Novatek CEO Leonid Mikhelson said that the project cost 50 billion rubles.

Launching the hydrocracking unit should render it possible to process heavy fractionation residue (fuel oil) at the gas-condensate fractionation facilities at Ust-Luga, thereby boosting the share of light marketable petroleum products to 99%.

The combined unit for raw materials has capacity of one million tonnes per year.