May 31 Lukoil, Russia's No. 2 oil producer, opened the country's largest vacuum gasoil (VGO) hydrocracking facility at its Volgograd refinery on Tuesday, built as part of a sweeping modernisation of the country's refineries.
The $2.2 billion VGO complex, which also includes hydrogen and sulphur production, can process up to 3.5 million tonnes of VGO a year. It will help Lukoil improve overall fuel quality and increase output of ultra-low sulphur diesel by 1.8 million tonnes annually, from nearly 4 million tonnes currently, the company said.
Russian oil companies and the government agreed on plans to modernise refineries in 2011 after gasoline supplies almost ran dry due to a lack of modernrefining capacity. The companies pledged to install 130 new facilities by 2020 that will enable Russia to increase production of higher-margin lighter products.
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