Modernization of Belarusian oil refineries is estimated at $2.5 billion, construction must be completed in November

Modernization of Belarusian oil refineries is estimated at $2.5 billion, and the construction of facilities must be completed in November of the current year, as reported by Belneftekhim, commenting on questions received during the BELTA campaign "Your Question to the President."

One of the questions received concerned the timelines for modernizing Belarusian oil refineries to the global level of oil processing, as well as the losses in the oil refining industry. As explained by Belneftekhim, thanks to the ongoing modernization of technological capacities, Belarusian oil refineries produce high-quality products that meet the requirements of the Euro-5 standard (Class 5). Belarus became the first country in the CIS to provide consumers of the republic with Euro-5 quality gasoline and diesel fuel (since 2015). Belarusian oil refineries have a high level of technological equipment. The Nelson Complexity Index, which characterizes this indicator, is 9 for Naftan OJSC and 8.96 for Mozyr Oil Refinery, while the average Nelson Complexity Index for Russian oil refineries is 5.1, for European oil refineries - 6.6, and the global average is 6.7. Belarusian plants are among the top 10, and in some positions, among the top 3 oil refining enterprises in the CIS countries. Further modernization of Belarusian oil refineries is aimed at expanding the configuration of the plants, increasing the yield of light high-demand petroleum products, and achieving advanced product quality indicators. This will increase the depth of oil refining and improve the overall efficiency of oil refining in the country. Two major investment projects are actively underway at Belarusian oil refineries: the construction of a delayed coking complex at Naftan OJSC and a heavy oil residue hydrocracking complex at Mozyr Oil Refinery. Each of these complexes consists of dozens of large production units and general plant facilities. The total cost of the facilities is about $2.5 billion, and the majority of this amount has already been financed. "The task is to complete the construction and installation work in November 2019 and begin the commissioning processes. Currently, the teams of the oil refineries and contracting construction organizations are working hard to fulfill the set task.""tasks," the Belneftekhim concern noted. The financial condition of oil refineries was negatively affected by the rise in global oil prices that occurred in 2018 and continued in the first months of 2019, as well as another stage of the tax maneuver in Russia, which resulted in an increase in the price of oil purchased by Belarusian refineries from the Russian Federation, accounting for about 80% of the cost of petroleum products. "In the current conditions, the oil refining industry will operate effectively if economically balanced prices for raw materials and petroleum products are established," the concern added.

BELTA.