Pavlodar plant to process Kazakh oil after modernization

Oil&Gas Materials 12 March 2012 11:49 (UTC +04:00)

Azerbaijan, Baku, March 12 / Trend E. Kosolapova/

The Kazakh Pavlodar Petrochemical Plant will be able to process not only Russian oil, but also Kazakhstan's raw materials following the modernization, the general director of the plant Shukhrat Danbai said, KazTAG reported.

"Earlier, we planned to carry out the plant modernization aimed at West Siberian oil processing. Now we have a task to modernize the plant for different mixtures and in particular Kazakh mixtures processing," Danbai said at the meeting with Kazakh Deputy Prime Minister Kairat Kelimbetov on Sunday.

Pavlodar Petrochemical Plant is one of the three oil refineries in Kazakhstan. The plant is oriented at West Siberian oil processing due to its specifications. Thus, currently, the plant's functioning depends on oil supplies from Russia. The plant's shareholders are Kazakh National Company KazMunaiGas Processing and Marketing's affiliated company - Refinery Company RT (58 percent shares) and Kazakh National Welfare Fund Samruk-Kazyna (42 percent shares).

The feasibility study of Pavlodar Petrochemical Plant global modernization, prepared by Italian Eny passed state examination and was approved by the Plant's Technical Council and Investment Committee of the Kazakh National Oil Company KazMunaiGas. The amount of investment in the modernization project will hit $1.69 billion.

Following the modernization, the plant's capacity will increase to 7.5 million tones of crude oil per year with the depth of processing up to 90 percent. Moreover, oil products produced by the plant will reach Euro 5 environmental standard. The modernization project envisages the construction of five new installations, the renovation of two installations and the reconstruction of eight installations.

The plant's modernization will be financed by the Japanese consortium Hyundai Marubeni.