Маžeikių Nafta announces successful completion of first phase of Modernization Program

05-09-2003  News

MAÞEIKIAI — Маžeikių Nafta has completed performance testing after starting up its new PENEX Isomerization Unit this week. Successful installation of the PENEX Unit marks the completion the first phase of the refinery’s Modernization Program, which is designed to raise the quality level of Маžeikių Nafta’s products to meet 2005 European Union specifications.

The first phase of the Program included modification of existing units, with a budget of around USD 17 million, and installation of new facilities, budgeted at over USD 62.5 million. The principal objective of the Modernization Program is to reduce the quantity of benzene and sulfur in the gasoline produced by the refinery.

The first phase included three sets of projects.  This week, Маžeikių Nafta started up the PENEX Isomerization Unit, designed to improve product quality. The PENEX Feedstock Preparation Unit was started up several weeks earlier. The goal of this set of projects was to reconstruct the refinery’s existing units to enable preparation and rectification of feedstock for the PENEX Unit, using a minimum of new equipment.

The second set of projects, designed to increase the efficiency of Маžeikių Nafta’s operations, includes a Gasoline Blending Station and additional storage tanks at the Bûtingë Terminal. The Gasoline Blending project includes two major components: modifications to existing tanks, and new blending pumps and controls. The project allows Маžeikių Nafta to create gasolines of various specifications and to reduce production costs through optimal product blending.

The next phase of Modernization Program projects, intended to reduce sulfur levels in gasoline and diesel fuel, is already under way.

Маžeikių Nafta General Director P. Nelson English has noted that “the PENEX Unit, along with the Naphta Processing Upgrade project and the In-line Gasoline Blender, will allow the refinery to meet current clean fuel specifications. The Modernization will enable the refinery to better meet market demand, both local and export, for higher-octane grades of gasoline. It will also provide an optimized gasoline blending capability and product grade flexibility as driven by new market specifications. Higher-octane gasoline demands a higher price, resulting in an increase in the refinery’s net margin.”

The second and third phases of the Modernization Program are currently under revision and review.

Giedrius Karsokas
AB Mažeikių Nafta
Tel.: +370 610 65298
Fax: +370 443 92579

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