LUKOIL LAUNCHES PRODUCTION OF EURO-3 COMPLIANT GASOLINE

Wednesday, February 15, 2006

LUKOIL has launched production of gasoline which satisfies the requirements of the European Euro-3 standard.

This became possible due to commissioning an isomerization installation of the catalytic reforming unit at OAO LUKOIL-Nizhegorodnefteorgsintez refinery (Kstovo, Nizhniy Novgorod region).

Project capacity of the unit in terms of raw material in 440 thous tons per year.

Production volume of gasoline complying with Euro-3 standards will reach 50% of the total motor gasoline output of the plant. In 2005 the refinery produced 1.6 mln tons of gasoline.

The installation product is isomerizate, a high-octane component of motor gasolines. Its application makes it possible to produce gasoline containing less than 42% of aromatic hydrocarbons, less than 1% of benzole and less than 150 ppm of sulfur.

After a thorough analysis conducted by the Company’s isomerization technology experts, PAR-ISOM process was selected. UOP Ltd. (USA) has developed the process, provided technology, catalyst and base reconstruction project.

Capital investments of the project amounted to 899.3 mln rubles.

‘Launching production of gasoline compliant with Euro-3 requirements is an important milestone on the way to implementing the program aimed at upgrading LUKOIL’s refineries, which focuses on the increase of environmentally friendly motor fuel in compliance with European standards’, said Vagit Alekperov, President of OAO LUKOIL.