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Kirishi Chosen for New Oil Refinery

The most recent Russian oil refinery was built in the Soviet Union about 35 years ago.

Published: March 26, 2014 (Issue # 1803)



  • The KINEF refinery in Kirishi has been in operation since the 1960s and will soon be joined by a second refinery.
    Photo: wikimedia commons

The first new high-conversion residual oil refinery in Russia is due to begin construction in the town of Kirishi, located 150 kilometers southeast of St. Petersburg. Six years in preparation, the Russian Ministry of Energy has granted its approval of the project and the refinery is currently in the design and engineering phase. The first stage of the plant is due to come online sometime in 2017 or 2018 at a capacity of 4 million tons per year, with a subsequent boost to 12 million tons per year.

The most recent Russian oil refinery was built in the Soviet Union about 35 years ago, said Maxim Sushkevich, the executive director of the Kirishi-2 Oil Refinery, speaking to The St. Petersburg Times. After this, only small oil refineries with a capacity of up to one million tons per year were developed. Most other oil refineries are existing plants that have been modernized. The uniqueness of our project is that we are engineering the refinery from the ground up.

The average rate of residual oil conversion in Russia is 71 percent, according to data from the Kirishi-2 Oil Refinery. Residual oilis oil found in low concentrations naturally or in exhausted oil fields. The figure represents the amount of useful products extracted from the oil, such as petrol or diesel fuel. The remaining 29 percent is made up of mazut, a heavy, low-quality waste oil. The new plant expects to increase the conversion figure to 95 97 percent. The refinery is being constructed specifically with this aim in mind.

Mazut was used in the past for heating. With the move to gas, the demand in mazut is falling in Russia, said Sushkevich.

In the past, western oil factories bought mazut as raw material and reprocessed it. From 2015, the taxes on mazut will be equal to those levied on oil. It will become unprofitable to export, as western consumers will not pay the same price for it as they do for oil. If given a choice between buying a good-quality oil or a residual oil, I think the choice is obvious. So there will be a lot of mazut flooding the domestic market, he said.

It is the domestic market, with its lack of quality fuel, that is the target for the new refinery. The company plans to produce AI-95 petrol, diesel, kerosene and petrochemicals. Yet the company does not discount the possibility of selling the remaining product abroad.

The representatives of Kirishi-2 say that the location of the refinery is suitable, due to prevailing winds. None of the emissions from the factory will affect either Kirishi or St. Petersburg.

It was for this reason that the location was chosen by Soviet authorities for the KINEF refinery, which is often referred to as the Kirishi refinery. The new facility, however, is not related to the old biochemical plant but is a separate entity. The owners of the new plant intend to use the extant infrastructure that is already available on the site, including railway lines and highways that will be used to transport both raw materials and finished products.

Kirishi-2 will utilize the latest technologies to ensure that the plant is ecologically friendly, said Sushkevich. The environment is our priority. Although these technologies will slightly boost our costs, we will recoup our expenses in the end. It is always best to minimize risk, including to our reputation, beforehand. Our goal is for the refinery to wholly service the community, by providing jobs and further stimulating the petrochemicals industry regionally and nationally.

The refinerys management estimates that the investment in the first stage of construction will be $6 billion. This will be made up of money from individuals and some private foundations. The Ministry of Energy also runs a program that offers funding for such enterprises, which Kirishi-2 has applied to join.





 


ALL ABOUT TOWN

Thursday, July 24


Liliana Modiliani, a well-known Russian stylist, will talk about choosing clothes that fit during her lecture at 7 p.m. at the Pryamoy Efir art club, 13 Viborgskoe Shosse.



Friday, July 25


Discuss Russias economic and political prospects for 2014 during a Business Breakfast organized by SPIBA at 9.30 a.m. in the Bank Saint-Petersburg office at 64


Malookhtinsky Prospekt.


Start your weekend with adorable miniature pigs at the Squealing Pig festival at 7 p.m. this evening in the Karl & Friedrich restaurant, 15 Iozhnaya doroga, on Krestovsky Island.



Saturday, July 26


Hundreds of brand-new and retro cars, drag and drift shows, test drives and karting are planned for the Avtobum-2014 festival, which will take place in front of the RIO shopping center at 2 Fuchika Ulitsa.


Participants in todays SaniDay Summer competition will impress visitors with their hand-made, unusual and hilarious boats, which will race at the Igora Resort near the 54th kilometer on Priozerskoe Shosse.


Metro Family Day will include both serious lectures for adults and master-classes for children, making the event interesting for the whole family. To participate, come to Kirov Park on Yelagin Island.


Photography will be the focus of todays Photosubbota, which features lectures by famous photographers, meetings with photo schools and studio representatives, and participation in a photography competition. The event starts at noon at Petrokongress, 5 Lodeynopolskaya Ulitsa.


If you like cycling, make sure to visit the Za Velogorod Festival with its retro bike exhibition, market and live music. The second round of the Leningrad Criterium race will also take place during the event at Petrovsky Arsenal in Sestroretsk.



Sunday, July 27


Navy Day will be celebrated with a weapon and military transportation exhibition, self-defense master classes and concerts. The event starts at 1 p.m. in the 300th Anniversary Park of St. Petersburg.



Monday, July 28


Dont miss a chance to see the latest achievements in robotics during the RoboDom interactive show, exhibiting more than 150 robots. The show will be at BUM center, 22/2 Gzhatskaya Ulitsa, until Aug. 3. The entrance ticket costs 350 rubles ($10).



Tuesday, July 29


A video of a Queen concert from 1986 will be shown today at 8 p.m. in Yaschik, 50/13 Ligovsky Prospekt.



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