Russian operator lets contract for hydrocracking complex

Dec. 6, 2018
PAO Novatek subsidiary OOO Novatek-Ust-Luga has let a contract to Haldor Topsoe AS to supply proprietary technology for hydrogen production as part of a hydrocracking complex upgrade to be completed at its 120,500-b/d gas condensate fractionation and transshipment refinery at the all-season port of Ust-Luga on the Baltic Sea in Russia.

PAO Novatek subsidiary OOO Novatek-Ust-Luga has let a contract to Haldor Topsoe AS to supply proprietary technology for hydrogen production as part of a hydrocracking complex upgrade to be completed at its 120,500-b/d gas condensate fractionation and transshipment refinery at the all-season port of Ust-Luga on the Baltic Sea in Russia.

Alongside training of Novatek operators, Haldor Topsoe will deliver licensing, basic and detailed engineering, all equipment—including a pressure-swing adsorption (PSA) unit and water-treatment unit—steel structures, and catalyst for the 30,000-cu m hydrogen plant, which will be based on the modular Haldor Topsoe Convection Reformer (HTCR) technology, the service company said.

Novatek-Ust-Luga selected the preassembled skid-mounted HTCR unit for its ability to meet the operator’s strict requirements for minimal water consumption as well as the unit’s small footprint and fast delivery, Haldor Topsoe said.

Basic engineering on the hydrogen plant is under way, with the plant slated for full commissioning during second-quarter 2020.

When the hydrocracking complex is completed, Novatek-Ust-Luga will increase production of kerosine, diesel, and naphtha due to deep conversion of atmospheric residue after distillation of stable gas condensate, Haldor Topsoe said.

In its quarterly report to investors for the period ending Sept. 30, 2018, Novatek said it has completed the tender list of participants for the proposed project, with engineering surveys also now under way.

Main construction activities on the hydrocracker upgrade—which will cost an estimated 19 billion rubles—are scheduled to begin in 2019 and be completed by mid-2020, the operator said.

Started up in 2013, the Ust-Luga complex currently processes stable gas condensate into light and heavy naphtha, jet fuel, ship fuel component (fuel oil) and gas oil and enables Novatek to ship petroleum product products to international markets. The complex also allows for transshipment of stable gas condensate to export markets.

Contact Robert Brelsford at [email protected].