News and media releases

Shell to help Russia’s refinery expand and develop new products

26/10/2007

Mariisky NPZ LLC (Mariisky NPZ) in Mari El, Russia and Shell Global Solutions International B.V. (Shell Global Solutions) have signed an agreement that will enable Mariisky NPZ to upgrade its refining configuration to meet stricter European specifications and increase refining capacity.

Mariisky NPZ’s refinery in Mari El became operational in 1998 and has a product range including straight run naphtha, vacuum gas oil, diesel fuels and kerosene. The refinery plans to expand the existing capacity so that it can generate more value-added products and meet the Euro V specifications.

Following a feasibility study completed in June 2007 by Shell Global Solutions, Mariisky NPZ has selected a two-phased investment approach.  The first phase will expand crude distillation capacity by adding a crude distillation unit (CDU) combined with high vacuum unit (HVU), as well as a solvent deasphalting unit (SDA) and a hydrocracker unit (HCU), which will maximise the production of kerosene and diesel.  The diesel will comply with Euro V specifications while the kerosene will be produced according to Russian kerosene fuels specifications and if required, international kerosene A1 specifications could be achieved with minor modifications.

On completion of the first phase, Mariisky NPZ is hoping to invest in upgrading light-end fuels via aromatics production.  The refinery is expected to become a fuel oil free refinery, manufacturing light, high-value products.

Under the new agreement Shell Global Solutions will supply the basic design packages and licences for the three process units (CDU, HVU and HCU) and is in talks with the refinery about the next steps to bring the units online.  The current plan is that the design work for the units will be completed in September 2008.

Alexey Mileev, Chairman of the Board at Mariisky NPZ LLC, said: “Our decision to alter our refining configuration will allow us to expand our refining processes and develop new products.  Engaging in a relationship with Shell Global Solutions offers us not only technical advice, but will provide overall business consultancy as the company has vast operational and industry experience.”

Wayne Hutchinson, Vice President, Sales & Marketing, Shell Global Solutions said: “Refineries have seen great advances in recent years including improving catalysts and the plant equipment to raise hydrocracking process unit performance.  Shell Global Solutions recognises that every business is different therefore it is necessary to adapt processes and design plans to the specific needs of the business.  We are delighted to be working with Mariisky NPZ and hope that we can develop our relationship to become a long-term partner.”