Project Profile
Value: US$1.5 Billion
Location: Bulgarian Black Sea Coast, Burgas Province, Burgas, Eastern Bulgaria
Capacity: 2.5 million tonnes
Start-up Year: January 2015
Lukoil Neftochim Burgas has put the forward the plan to build a heavy residue hydrocracking complex at the Lukoil Neftochim Burgas refinery.Lukoil Neftochim Burgas and Technip concluded a US$700 million contract for the construction of the heavy residue hydrocracking complex. The contract was signed at the Lukoil Bulgaria headquarters in Sofia by Lukoil Neftochim Burgas and Technip. The complex will be Eastern Europe\'s largest catalytic hydrocracking plant. This contract follows the successful execution of the front-end engineering design that was completed by Technip in the first quarter of 2010, and the detailed engineering and procurement service contract won by the company at the beginning of 2011. Implementation of this project will allow the refinery to increase its output of Euro-5 diesel fuel by 1.2 million tonnes per year and also close down the production of high sulfur fuel oil. The key element of the new complex is a tar hydrocracker that will possess an annual capacity of 2.5 million tonnes. It will also involve the construction of an amine regeneration unit, a sour water stripper and hydrogen production units. Commissioning of the new complex is expected to be complete in January 2015.
The complex is of enormous environmental significance because its commissioning will abruptly decrease harmful air emissions. The complex is due for completion within 37 months. There are only nine such plants worldwide: in Mexico, the US, Canada, Poland, Japan and Kuwait. Three thousand jobs will be created during the construction of the complex, and a number of activities related to the design, to logistics and to the manufacture of parts and equipment will be assigned to Bulgarian companies. As the new capacity becomes operational, Lukoil Nefotchim Burgas will decomission obsolete plants. The new plant will make it possible to increase oil processing to 92 per cent and will generate steady profits for Lukoil and budget revenue for Bourgas Municipality and Bulgaria.
The new technology will also reduce harmful air emissions in this resort area, the company executive said. The implementation of this project will enjoy the full support of the Bulgarian Government. Hydrocracking is a catalytic cracking process assisted by the presence of an elevated partial pressure of hydrogen gas. Major products from hydrocracking are jet fuel and diesel, and high octane rating gasoline fractions and LPG are also produced.
Operators:
Lukoil Neftochim Burgas: Operator with 100% interest
Contractors:
Technip: FEED contract and EPC of Phase 1 for the heavy residue hydrocracking complex