Modernization of Belarusian oil refineries to end in 2019
MINSK, 1 June (BelTA) - The modernization of Belarusian oil refineries
will be finished in 2019. The deadline was set as a result of the
government conference called by the head of state on 1 June to discuss the
strategy for developing the Belarusian oil processing industry, BelTA
learned from Igor Lyashenko, Chairman of the Belarusian state
petrochemical concern Belneftekhim.
The implementation of investment projects at the Naftan oil refinery and
Mozyr Oil Refinery was discussed in detail during the conference. The head
of state was informed about the present difficult market situation.
According to Igor Lyashenko, the market is overloaded with oil and oil
products. All these factors reduce the profit margin. The Belarusian oil
refineries have to overcome these complicated conditions to find money for
investment projects. The projects are supposed to be finished in 2019.
Considerable sums will be required for it. One refinery will need over
$500 million while the other one will need over $700 million, said Igor
Speaking about sources of finance, the Belneftekhim head said that
resources of the oil refineries will be used in addition to loans. Chinese
loans may be used to implement investment projects at the Belarusian oil
refineries. The available options were discussed during a recent visit of
Belarus President Alexander Lukashenko to China. ?They will definitely be
interesting for us, provided the terms are affordable,? said Igor
According to the Belneftekhim head, during the government conference the
head of state pointed out that the companies should work effectively and
should cut costs, including administrative ones. More attention should
also be paid to the quality of construction work, acceptance and
installation of equipment.
?All the i?s have been dotted, deadlines have been set,? stressed Igor
The medium-term development strategy of the Belarusian oil processing
industry will bear in mind the market situation. ?In the medium term we
have to finish investment projects at both refineries. It will increase
the output of light oil products and the crude oil upgrading index. It
will bring about a more stable financial situation and will expand
horizons as far as sales of oil products are concerned,? noted the
As for long-term prospects, the oil market situation will depend on
changes in other branches of the production sector, including automobile
engineering. ?We see certain trends. The world statistics indicates that
in 4-5 years we will feel the decrease in consumption of oil products.
This is why the companies are busy working out long-term investment
projects, which will allow diversifying the business away from traditional
diesel fuel and gasoline towards petrochemistry,? said Igor Lyashenko.
Speaking about the overall effectiveness of the industry, the Belneftekhim
head noted that they intend to hit all the targets set by the government
for H1 2017. ?If the global markets remain as they are, we don?t think we
will miss any performance targets this year,? he stated.
Alexander Lukashenko was also informed about the investment projects the
chemical company Mogilevkhimvolokno, the tire manufacturer Belshina, and
the chemical company Grodno Azot are implementing. ?Close attention was
paid to Grodno Azot?s project. We intend to launch a large investment
project to build a new nitrogen facility,? said Igor Lyashenko.
Heads of Belarusian oil processing companies also talked about
modernization plans. In 2016 Mozyr Oil Refinery commissioned five
production facilities worth a total of $480 million. ?The gradual
retooling process as per the company?s development concept has allowed
enabling certain favorable conditions for implementing such a large
investment project as the facility for hydrocracking black oil. The
project is in the active implementation stage,? said Mozyr Oil Refinery
Director General Vitaly Pavlov.
The executive specified that the black oil hydrocracking facility
comprises three installations: a black oil hydrocracking plant, a hydrogen
manufacturing plant, and a sulfur manufacturing plant in addition to 21
In turn, a delayed coking complex is the main project for the Naftan oil
refinery, noted the company?s director Alexander Demidov.
The implementation of these investment projects and the completion of the
retooling campaign will allow increasing the crude oil upgrading index to
90%. The Belarusian oil refineries will be able to process oil effectively
and at a profit. In turn, their operation will favorably affect the
national economy as a whole.