Lukoil has let a contract to Tecnicas Reunidas of Spain covering a vacuum gas oil deep conversion complex at its 11 million tonne/year (tpy) Volgograd refinery in Russia.
The project will include what Lukoil calls one of the world’s largest VGO light hydrocracker units with a capacity of 3.5 million tpy as well as a combined sulfur unit and hydrogen production facilities.
The contract, worth more than $1.4 billion, covers detailed engineering, supply of materials and equipment, construction, and support of start-up operations. Work is to be complete by the end of 2015.
The project will boost the refinery’s output of Euro-5 diesel by 1.8 million tpy.