BRUSSELS (Reuters) - Russia’s exports of clean fuels such as diesel, gasoline and jet fuel will rise substantially in the coming years as more of its refineries upgrade production, a Rosneft executive told the Platts refining summit in Brussels.
Six years after a massive refinery modernization program was launched in Russia, Johannes Bremer, asset management director of Rosneft Deutschland, said there are 40 additional projects underway in Russia that will further boost the country’s production of high-quality fuels - and cut its fuel oil yield.
“I think we will see another wave of upgrades,” Bremer, said. “The Russian refineries really don’t have the flexibility on the crude slate, so the only way to adjust the output is to upgrade.”
Rosneft expects the diesel yield in Russian refineries to come close to 40 percent by 2025, up from 32 percent in 2015, and the gasoline yield to reach 17 percent, up from 14 percent. Fuel oil will drop from 26 percent to just 15 percent.
Bremer said crude runs are also expected to increase by 5 percent as it is “commercially very attractive to process.”
”Far more clean fuels will be produced, Bremer said, adding the additions would outpace domestic demand growth. “The export pressure for Russia will steadily grow.”
Russia, already a major diesel exporter, could see its exported volumes surpass 60 million tonnes in 2025, while exports of gasoline could nearly double, to close to 9 million tonnes, Bremer said. Jet fuel exports are expected to increase to just under 6 million tonnes. Russia’s own naphtha demand would be more balanced with supply due to the addition of petrochemical units, Bremer said.
Already, Russian gasoline exports jumped by more than 15 percent last year to 3.35 million tonnes due to widespread modernization plans that began in 2011.
Reporting By Libby George; Editing by Elaine Hardcastle