Russia's Vice Premier Igor Sechin suggests constructing in Russia a new refinery with capacity of at least 12 million tons and the worth of around $8 billion.
Photo: Alexander Miridonov
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Vice Premier to Inject $8bn in Refining
Russia's Vice Premier Igor Sechin suggests constructing in Russia a new refinery with capacity of at least 12 million tons and the worth of around $8 billion. The idea originated from small oil companies of the country and Sechin stakes on the project to slow down petroleum prices in Russia. If the project is finally implemented, Russia will have the first new big refinery constructed since the time of the Soviet Union.
Vice Premier Igor Sechin backed up yesterday the small oil companies by voicing the state support for constructing a new refinery and delivering petroleum to domestic market.
“Together with development institutes, we will be working at the possibilities to construct a good refinery to process crude oil of independent producers,” Sechin announced at the government’s briefing. The initiative came from Assoneft association of small oil companies, the vice premier specified.
According to Sechin, the capacity of new facilities will be at least 12 million tons and the estimated budget of the project will stand at roughly $8 billion. “A site is to be chosen with regard to resource base, transport means and regional sales market.”
Sechin said he had seen no estimates related to the project, “but the mere talk about it has alarmed quite a few already and I think it will favorably affect prices on domestic market.”
For the purpose of funding the project, the vice premier went on, “it will be evidently necessary to set up some construction consortium with potential suppliers and the state interest.”
Indeed, Russia has a few precedents of attracting the Investment Fund’s money for oil projects. One of them is construction of a petrochemical plant in Nizhnekamsk, but the government’s aid covers a minor portion of expenses there. The project budget stands at 222 billion ruble, while the Investment Fund has appropriated just 16.5 billion ruble and will provide the same amount in 2008 through 2009.
www.kommersant.com
All the Article in Russian as of July 10, 2008
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