Shymkent Oil Refinery to receive additional $400 million for modernization08 november 2014, 15:21
The Shymkent Oil Refinery, one of the three in Kazakhstan, will received additional $400 million for its modernization, Tengrinews reports.
The funding for the project of PetroKazakhstan Oil Products will come in the form of a loan.
"Sberbank CIB1 (corporate and investment business of Sberbank of Russia), together with its subsidiary bank in Kazakhstan has organized the financing for KazMunaiGas - Processing and Marketing for 10 years," Sberbank reported.
According to the first deputy general director of KazMunayGas - Processing and Marketing Yerbolat Kozhabayev, this funding will be used to implement the first and second phase of the project of Reconstruction and Modernization of the Shymkent Oil Refinery. The necessary equipment will be purchased to increase the quality of products and the capacity of the oil refinery.
"In particular, these will be installations for isomerization with a feedstock prehydrotreating unit for catalytic cracking of heavy RFCC residues and for catalytic cracking "Prime G" gasoline hydrotreatment. These will secure the production of motor fuels of K-4 and K-5 classes and increase the processing capacity," Kozhabayev said.
In May this year it became known that 890 foreign experts would be involved in reconstruction and modernization of the Shymkent Oil Refinery. Of them, 5 experts would be of the first category (top executives), 33 experts of the second category (heads of departments), 733 experts of the third category (highly qualified professionals) and 119 experts of the fourth category (qualified professionals).
In addition, the Development Bank of Kazakhstan and China’s Exim Bank signed a $1 billion dollar memorandum on modernizing the refinery, which should lead to environmentally conscious production and increase the capacity of the plant to 6 million tons of fuel a year.
The modernization of the oil refinery is expected to be completed in 2016.
By Dinara Urazova