April 10, 2012:

MOSCOW - Output at Rosneft's export-focused Tuapse refinery is set to double in May with the start-up of new capacity, company sources told Reuters on Tuesday. A spokesman for Russia's top crude producer declined to comment. Sources said refinery runs would be increased up to 700,000 tonnes a month after launching a new crude distillation unit (CDU) at the plant, which produces mostly fuel oil, diesel fuel and naphtha.

"The column (CDU) is ready. We will double the loadings starting from May, up to 650,000 to 700,000 tonnes," one source said. So far, Tuapse on the Black Sea has processed 4.5 million tonnes of crude oil a year. The new unit will boost capacity to 12 million tonnes, making it Rosneft's second-biggest after its East Siberian Angarsk refinery, which last year processed almost 10 million tonnes. The output boost at Tuapse, which was founded in 1928, is in line with a government programme to modernise Russia's aging refineries.

One hurdle -- limited capacity on crude oil pipelines leading to Tuapse -- could be resolved by the end of the year when Rosneft and pipeline monopoly Transneft are expected to launch a new link.

By Reuters