PJSC Rosneft has finalized a contract award to Maire Tecnimont SPA for delivery of engineering, procurement, and construction (EPC) services on grassroots vacuum gas oil (VGO) hydrocracking complex to be built at Rosneft subsidiary JSC Ryazan Oil Refining Co.’s (RORC) 17.1-million tonnes/year (tpy) refinery in Russia’s Central Federal District, about 200 miles southeast of Moscow (OGJ Online, Oct. 28, 2021).
As part of EPC contract, Maire Tecnimont subsidiaries Tecnimont SPA and MT Russia LLC will provide design, supply of equipment and materials, construction, startup and commissioning, and project finance services for the proposed 40,000-b/d (2.2-million tpy) VGO hydrocracking complex, Maire Tecnimont said on Jan. 26.
The planned complex will enable RORC to increase conversion of heavy VGO volumes from the refinery’s vacuum distillation unit into Russian Class 5 (Euro 6-quality equivalent) gasoline, kerosine, and diesel fuels for Russia’s domestic market, according to the service provider.
Maire Tecnimont—which valued the EPC contract at about €1.1-billion—said a timeline for its duration of work under the agreement will be defined and disclosed following Rosneft’s final investment decision (FID) on the project and fulfillment of other unidentified conditions.
In a separate Jan. 26 release, Rosneft confirmed it remains in discussion with banks to secure financing for RORC’s VGO complex but did not reveal a timeframe for taking FID.
To be equipped with energy-efficient, environmentally friendly technologies and equipment that includes an automated control system to help reduce the plant’s carbon footprint, the proposed VGO hydrocracking complex—if realized—will feature hydrocracking units, hydrogen production units, elemental sulfur production units, as well as associated off-site installations.
RORC’s planned VGO hydrocracking complex comes as part of Rosneft’s broader, ongoing modernization program to upgrade its company-wide refining system to boost production and supply of Class 5-quality fuels.
Since 2012, Rosneft has invested more than 900 billion rubles—or about $13 billion—to date on works to expand Class 5 gasoline and diesel production at its refineries, including construction and-or revamping of 23 major units across the system (OGJ Online, June 22, 2020; Mar. 19, 2018).