TAIF-NK PSC Brought At Totally New Level of Oil Refining
February 14, 2012
Today, in the office of TAIF PSC, TAIF-NK PSC and Kellogg Brown and Root (USA engineering company) signed a Basic Engineering Contract for a VCC Unit based on a VEBA COMBI CRACKER process. The event was held with participation of the President of the Republic of Tatarstan Rustam N. Minnikhanov.
A licensed VEBA COMBI CRACKER process is an unconventional process containing 4 hydrocracking reactors in line. The first three reactors, owing to the patented technology, allow conversion of low-quality vacuum residue or any bitumen oil into clean “synthetic” oil or clean vacuum gasoil. The fourth reactor is a classic hydrocracker, which is able to convert vacuum gasoil into naphtha, kerosene and diesel. As a result, kerosene and diesel have quality no lower than EURO 5 standards. It is important to mention that this is not a complex of facilities but rather a single large-scale unit.
Economic efficiency of VEBA COMBI CRACKER process exceeds all known oil refining technologies 2 – 2.5 times in terms of profit generation. The unit feedstock processing capacity is 2.7 MTA for bitumen and up to 0.7 MTA for vacuum gasoil. The cost of VEBA COMBI CRACKER unit with all infrastructure required is USD 1.5 billion. The launch of the VCC Unit in Nizhnekamsk is scheduled for 2015. Since that time TAIF-NK PSC will be capable of refining over 7.3 MTA of locally produced oil and yield 7.1 MTA of high-quality petroleum products, including feedstock for petrochemical production, having quality no lower than Euro 5. The use of the VCC process will bring local oil conversion depth at Nizhnekamsk Refinery, at least, to 90% - 95%. The refinery’s aggregated return will grow 1.7-2 times.
Engineering and construction of the VCC Unit will be a closing stage of modernization and development of TAIF-NK’s Refinery. This will allow dispensing with any large-scale and expensive projects for 15-20 years. Such vision of development elaborated by the Government of Tatarstan is fully compliant to industrial policy of the Government of the Russian Federation, which, in 2011, introduced legislative requirements to upgrade all Russian existing refineries within 5-8 years with the aim to deepen oil conversion and produce only high-quality petroleum products.
One of the four largest state companies of China was the first to acquire the VCC process with the aim to put this unit into operation at the beginning of 2013. One more company also looking into possibility to use the VCC process is an Indian Reliance Group, the biggest private company in India. Reliance is among the top-500 global companies, owns the world biggest 58 MTA refinery; the Group’s annual profit is over USD 58 billion. In Kazan, Reliance made a detailed presentation of its VCC process-based project.
Kellogg Brown and Root (KBR) is one of the largest multi-functional providers of services in energy and petrochemical industries (front-end engineering and design, conceptual engineering, basic design, detailed engineering, procurement, construction, commissioning, project management as well as executing government contracts and projects aimed at the development of civil infrastructure). Having over 57 thousand employees in 45 countries worldwide, KBR possesses enormous intellectual resources enabling it to have leading positions in many markets where it renders its services. KBR is among the four largest engineering companies in the world according to 2011 results.
Media Office, TAIF Group
For further information, please contact:
Dmitry V. Nemanov,
Head, Media Office, TAIF PSC