09 января 2015 19:17

Development Bank of Kazakhstan funds modernization of Pavlodar Oil Refinery

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File photo. ©Tengrinews File photo. ©Tengrinews

Pavlodar Oil Refinery will receive $1.2 billion in funding from Development Bank of Kazakhstan (DBK), Tengrinews reports citing the press services of the bank and KazMunaiGas Processing and Marketing company that owns the plant.


Pavlodar Oil Refinery will receive $1.2 billion in funding from Development Bank of Kazakhstan (DBK), Tengrinews reports citing the press services of the bank and KazMunaiGas Processing and Marketing company that owns the plant.

"Together with KazMunaiGaz, we are delighted to make a significant contribution into setting up processing of high quality oil products in Kazakhstan and ensuring energy security of the country," head of DBK, a former Minister of Finance of Kazakhstan, Bolat Zhamishev said.

The cost of the turnkey contract is far greater than $1.2 billion. Most of its is funded by via a club loan from Japanese banksand only around 25 percent comes from DBK in the form of a 10 year loan for construction and installation works.

"The project will improve the quality of engine fuels produced at the plant and bring them to K4 and K5 emission classes (corresponding to Euro-4 and Euro-5 standards). The plant's refining capacity will also be increased. After the modernization is complete the plant will be able to processes 7 million tons of Western Siberian oil per year against the current 5 million tons, plus up to 5 million tons of Kazakhstan's oil per year,” the statement said. The refinery located in north-west of Kazakhstan close to the Russian border is currently oriented at processing Western Siberian oil.

The project is led by Rominserv, a subsidiary of Romania's Rompetrol Group. It got a USD 1.072 billion general contractor contract from Kazakhstan's KazMunaiGas in 2013 to engineer the project, manage procuring of materials and equipment for the construction of new installations and for the upgrading of the existent ones. 

The Rompetrol Group is entirely owned by Kazakhstan national oil and gas company KazMunayGas and is present in 12 countries, having a majority of its assets in France, Romania, Spain and South Eastern Europe. Rompetrol is involved in refining, marketing and trading, as well as in exploration and production, and provision of oil and industrial services.

The actual on-the-site modernization works spearheaded by the European group started in 2014 and are being carried out without any interruptions in the refinery's operation. They are scheduled to be completed in 2017, but even before that, after commissioning of the first two start-up facilities on January 1, 2016, Pavlodar Oil Refinery will be able to produce engine fuel of K4 class.

According to Rompetrol, the modernization project involves upgrading ten of the plant's existing units - Crude Distillation Unit, Vacuum Distillation Unit, Kero Hydrotreater, Diesel Hydrotreater Unit, Merox, Naphta Hydrotreater, Vacuum Gas Oil, Catalytic Cracking Unit, Catalytic Reforming Unit, Utilities and Off-sites - and construction of several new installations - a Penex isomerisation unit, sulfur recovery unit, sour water stripper, amine regeneration unit, and diesel hydrotreating and dewaxing units.

Pavlodar oil refinery is a subsidiary of KazMunaiGas-Processing and Marketing company. It was put into service in 1978. It is the largest oil refinery in Kazakhstan and the most modern one in Central Asia producing petrol, diesel, jet engine fuel, residual fuel, gases, asphalt, petroleum coke and scrape.

It is also the only oil refinery in Kazakhstan that has the processing units capable of taking the refining depth to 80-85 percent.  

Writing by Assel Satubaldina, editing by Tatyana Kuzmina

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