Downstream
The Russian refining system is the third largest in the world, ranked only behind the U.S. and China, with approximately 275 mnt of total capacity. In 2012, the volume of primary processing hit a record level of 270 mnt, up 4.9% year-on-year. Production growth has been driven by the transition to the European emission standards Euro-3 effected in 2013, an increase in internal demand and expansion of gasoline exports.
The majority of refineries still require upgrading, with a current Nelson complexity index of just over 5 compared to the European level of 6.5 and 9.6 for the U.S. The strategic goal set by the government is to reach processing depth of 83% by 2015.
According to investment plans announced by oil companies, capital expenditures of the sector exceeded RUB 300 bn in 2012.
Industry growth could be driven by new projects in 2013:
- The second stage of the TANEKO oil refining complex is to be put into operation and could lead to processing volume growth up to 5 mn tons.
- Gaspromneft has several large projects on the agenda; construction of the Nakhodka refinery plant (20 million t.) and modernization of the Omsk and Moscow refineries.
- Rosneft has announced plans to increase oil refining volumes by 11.5% to 64.6 million t. Under the programme, the Tuapse and Novokuybyshevsk refineries ought to be upgraded.
- Surgutneftegaz has started to implement the project on the designed capacity of deep oil refining at Kirishinefteorgsinteze This will allow the company to increase production of light oil products by 3.5 million tons.
- Lukoil is to launch the hydrocracker complex under the program of the Volgograd refinery modernization.