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TAIF-NK To Launch A New Heavy Residue Conversion Complex In 2015

  TAIF-NK (a 100% subsidiary of TAIF PSC) and Kellogg Brown and Root (KBR, USA) signed an HRCC1 Basic Engineering Contract.

The units capacity is 2.7 MTA for bitumen, and up to 0.7 MTA - for vacuum gasoil. The cost of the unit along with an infrastructure required amounts to $1.5 billion. The units start-up is scheduled for 2015.

Albert Shigabutdinov, General Director, TAIF PSC, announced at the press conference that own and borrowed funds to be invested will amount to 15% and 85%, respectively. A general contractor will be a building company PSO Kazan, which is also a part of TAIF Group. The pay-off period will be 3 years.

Rustam Minnikhanov, the President of Tatarstan, highlighted at the press conference that "the project will allow enhancing refining profitability many times". According to him, TAIF will gain a competitive edge. "TAIF can become the first company to possess a comprehensive refining facility", R. Minnikhanov said.

A source familiar with the project informed Interfax that among the funds raised there are benefits in the amount of RUB 38 billion granted to TAIF-NK. Also, the negotiations are held with one of European banks and Sberbank.

A new Veba Combi Cracker (VCC) technology, based on which the unit will be built, makes it possible to convert the entire vacuum residue available into naphtha, kerosene and diesel at 95% conversion rate. The unit consists of four hydrocracking reactors in line. According to VCC process, the first three reactors convert vacuum residue and bitumen oil into synthetic oil and vacuum gasoil. The fourth one is conventional, and it converts vacuum gasoil into naphtha, kerosene and diesel (meeting Euro-5 standard).

The yield will be 85% for light distillates, 10% for gases, and 5% for unconvertible feed that is supposed to be sold as road bitumen.

The first company, which took the opportunity to create a VCC unit, is one of the four Chinese state companies; itintends to launch the unit in early 2013. Also, an Indian company Reliance is looking into opportunity to use this technology.

Operating with a 7.3 MTA capacity for crude, TAIF-NK intends to yield 7.1 MTA of petroleum products after 2015. The refinerys aggregated profitability must grow 1.7-2 times. The conversion depth is expected to be no less than 90-95%.

Construction of the unit will be a closing stage of TAIF-NKs modernization and development for, at least, 15-20 years and there will be no need to schedule any other large-scale projects, according to the companys media service.

TAIF-NK is a part of TAIF holding. The refining complex consists of a refinery, a gasoline production plant and a gas condensate processing plant.


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