Page 13 - FSUOGM Week 13 2021

FSUOGM INVESTMENT FSUOGM

Tatneft, Lukoil sign downstream

investment deals with govt

RUSSIA RUSSIAN oil firms Tatneft and Lukoil have at its refinery in Nizhny Novgorod. The complex
agreed investment deals with the country’s will feature a 2.11mn tonne per year delayed
Gazprom Neft is also energy ministry covering downstream upgrades. coker, a combined 1.5mn tpy diesel and gaso-
reported to have Tatneft said on March 26 it had signed an line hydrotreater, a 50,000 cubic metre per hour
secured a deal, and investment deal with the country’s energy min- hydrogen production unit, a 425,000 tpy gas
Lukoil and Novatek are istry worth RUB50bn ($660mn) for upgrades at fractionator and an 81,000 tpy sulphur and sul-
vying for more. its Taneco refining complex in Tatarstan. Under phuric acid production unit.
the deal, Tatneft will add four oil refining units The launch of the complex will lower annual
to the complex in Nizhnekamsk by the end of fuel oil output at the refinery by 2.6mn tonnes,
2026. The units are for delayed coking, catalytic while boosting production of Euro-5 diesel by
cracking, heavy residue hydroconversion and 0.7mn tonnes. The facility’s light products yield
isodewaxing of diesel fuel. Their installation will will increase to 74%.
enable production of Euro-6 standard gasoline at Lukoil is seeking an additional investment
the site, as well as Euro-6 Arctic diesel. deal for work at its refinery in Perm worth
In return, Tatneft will secure a so-called RUB90-100bn, while Novatek wants to cover
“reverse excise tax premium” throughout the RUB50bn of investments at its gas processing
duration of the agreement, which runs until facility in Ust-Luga, Vedomosti reported last
January 1, 2031. The company said this was “an week. According to the newspaper, Gazprom
effective economic incentive for the implemen- Neft has already secured deals for its refineries in
tation of large-scale projects with a significant Moscow and Omsk, where it is looking to invest
national economic effect, which ensures the a combined RUB200bn.
country’s energy security and contributes to the The “reverse excise tax premium” is proving
development of related industries and the econ- popular,” analysts at BCS Global Markets com-
omy of the whole of Russia.” mented in a research note on March 29. “So far,
Earlier last week, Lukoil said it had clinched a estimated EBITDA boosts from this programme
deal for a petroleum residue recycling complex have ranged from 0.5-2.0%.” ™

Week 13 31•March•2021 www. NEWSBASE .com P13