The City of Moscow together with Gazprom Neft embarked on a project to renovate the Moscow Oil Refinery. In July, officials took part in the symbolic launch of reconstruction works at the refinery’s unit for isomerization of light naphtha. The modernization of the refinery will continue until 2020.

The new isomerization unit will produce components for gasoline having the octane rating of 90.5 and below. The block will enter operation in 2012. The capacity of the unit will be 650 thousand tons per year.

At the ceremony, Mayor Luzhkov noted that the Moscow Oil Refinery has already gone through four significant reconstruction stages. While the current fifth renovation is a little overdue, the Moscow Mayor noted he was grateful that it was possible under today’s economic conditions. Gazprom Neft and the Moscow government will allocate RUR 56 billion to the project. Moscow NPZ Holdings is the owner of the refinery. The company is a joint venture between Gazprom Neft and Sibir Energy. Gazprom Neft has the controlling stake in the company. In its turn, the Moscow government is the owner of 19 percent of Sibir Energy. City officials plan to increase the ownership share to 25 percent in the near future.

It is expected that the reconstruction of the refinery will increase the yield of finished product to 94 percent. The output of light oil products will likely reach 74 percent. The refinery will be able to boost its production of polymer products.

The modernization program also takes into account social responsibility and development. Over RUR 4 billion allocated to the project will be used for tackling environmental problems associated with the refinery’s operations.

According to Dyukov, Gazprom Neft and the City of Moscow are in agreement on the operations of the refinery. The most important asset in the renovation program is the mutual understanding between city officials and company executives.

Gazprom Neft and the city of Moscow first confirmed the renovation plan in April of last year. The plan calls for repairing the refinery’s existing structures to maintain its current capacity, as well as for adding extra capacity, enhancing workplace safety, and improving environmental accountability.

Products from the Moscow Oil Refinery account for nearly half of all petroleum products distributed in the Moscow region.