TNK-BP will invest $1.3 billion dollars over the next 5 years to modernize its Russian refineries to comply with new fuel-quality regulations.
Under new laws, coming into effect from 2010, fuel will have to meet EURO-3 standards, with those being upgraded to EURO-5 within 5 years. The company has also announced that it is commencing the sale of Pulsar-95 petrol, which meets Euro-4 standard, which will significantly reduce residue buildup on key engine parts as well as reduce the sulphur component of exhausts.
Didier Baudrand, Executive Director of TNK- BP says the company is looking to upgrade major refineries in a major capital outlay.
“We have the structure of this investment defined. This $1.3 billion consists of eleven projects. Five of which are of quite some consequence, that means more than $100 million each, and they are spread between the different refineries in order that each of them could comply with the future regulations. So the three refineries which we are talking about are Ryazan, Saratov, and Linik in Ukraine.”