Regarding PetroKazakhstan Oil Products LLP Shymkent Refinery Modernization and Revamping Project

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PetroKazakhstan Oil Products LLP is a refinery located in the South-Kazakhstan Oblast. The refinery was constructed in 1985, and represents one of three refineries in Kazakhstan. At present, it provides about 30% of the overall output of oil products in the RK.

PetroKazakhstan Oil Products LLP pays much attention to the project on modernizing its production facilities, and invests significant funds in its upgrade. One of PKOP’s achievements -costs decrease and processing efficiency increase– became possible due to implementation of the programs on improvement of production, revamping of operating units, and introduction of the new modern technologies. 

The company management has drawn up a long-term plan for Shymkent refinery development. The main objective of the project is to upgrade the refinery operation to the level which would meet the modern international standards of refineries’ performance.  

•   recover the design crude throughput up to 6 million tons per year;

•   increase crude  processing depth;

•   improve the yield quality up to Euro-4 and Euro-5 standard requirements;

•   increase the product slate – propane-propylene (petrochemical feedstock), elemental sulfur;

•   improve ecological programs.

Implementation of the project on “Shymkent Refinery Modernization and Revamping” will result in construction of 14 new process units, including the Residue Fluid Catalytic Cracking (RFCC), the Catalytic Cracking Gasoline Hydrotreater Prime G+, MTBE production unit, Merox unit for sulfur removal from non-saturated LPG, unit of tail gas treatment and sulfur recovery. In June 2015 there were successful guarantee operational tests conducted to start-up the facility “Diesel hydrotreater unit”. Installed reactor R-301-1 enables throughput of 1.5 million tpa with achievement of design indicators in producing a summer diesel component at Euro-5 standard level. The outgoing hydrogen sulfide is a feedstock for SPU-4000.

“Sulfur Production Unit – SPU-4000”, which was commissioned in December 2015, is a grass-root, completely constructed facility, the design capacity of which is 4 thous. tpa of elemental sulfur. Thus:

27 new workplaces with new technology training have been arranged; the specialists from related enterprises were invited for commissioning. As of today, 300 tons of sulfur has been produced by means of acid gas utilization, which was previously flared. The sulfur purity is above 99.9 % wt.

The completion of construction and commissioning of the “Oil products on-spot loading unit” are planned for the IV quarter of 2016. The automated gasoline loading makes a provision for 2 loading points through the telescopic pipes with a capacity of 730 m³/hour within 6-7 min. for 1 RTC. For today, construction and assembly works have been performed in the volume as follows: concrete pouring– 876 out of 2,014 m3; metal structures mounted- 340 tons out of 416 tons; installation of equipment has been started.

The project on “Isomerization unit with feedstock preparation block” is intended to produce the motor gasoline components of K-4, K-5 level with a capacity of 600 thousand tpa. More than 700 builders and assemblers with planned headcount increase up to 1,200 at the peak of construction and assembly works (in summer-autumn period) have been attracted to work on Isomerization unit. The earthworks at off-site facilities have been started; the ditch for tank farm #3600 has been prepared. They have started grouting the bored piles on the flare. As for today, the following works have been executed at the Isomerization unit: designing works – 98.9 %, placement of equipment orders – for 147 units out of 149, or 99 %; foundation arrangement– 6, 568 out of 6, 970 m3, or 94 %; installation of equipment – 62 of 149 units, or 41,6 %, including 3 distillation columns: K-205, K-701, K-704, the weight of which is within 200-400 tons, the height- up to 55 m, diameter- up to 6.6 m, and also absorbers, vessels, heat exchangers;  assembly of pipe furnaces P-206 and P-751 is on-going.  

Mechanical completion of the Isomerization unit is planned for the IV quarter, 2016; completion of off- site facilities and commissioning and start-up of the Isomerization unit– for the end of 1st quarter, 2017.

The “Catalytic cracking unit” project is intended to increase the crude throughput to 6 mln. tpa and processing depth- to 85 %. 

As for today, there have been executed: designing – to 13 % and off-site facilities – 15 %; placement of equipment orders– for 17 units out of 598, or 2.8 %; foundation arrangement – 1, 645 out of 8, 760 m3, or 18.8 %. 

The deadline is 4th quarter, 2017. It is planned to attract up to 3,500 people in total for this project during the peak of construction and assembly works under Stages 1 and 2. 

Performance of construction and assembly works under modernization project implementation does not involve production shutdown or decrease in yield. All new units are under construction in parallel.

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