Oil and gas condensate are supplied to oil refineries where over 100 marketable oil product names are manufactured: different grades of motor gasoline, diesel fuel, stove and fuel oil (mazut); oil asphalts; liquefied gas; lubricants, and such products as benzene, toluene, paraffin, which are used in the chemical and petrochemical industry.
Rated Capacity of Ukrainian Refineries (millions tons of oil per year
Oil refining and gas condensate processing, and oil products manufacturing in Ukraine is organized at six oil refineries, specifically: CJSC Ukrtatnafta (Kremenchuk), LLC LiNOS (Lysychansk), OJSC Khersonnaftopererobka (Kherson), OJSC Lukoil-Odesa Refinery (Odesa), OJSC NPK Galychyna (Drogobych), OJSC Naftokhimik Prykarpattya (Nadvirna) and Shebelynka Gas Processing Plant which makes a unit of SC Ukrgazvydobuvannya. The total annual capacity of the six domestic oil refineries is currently over 51 million tons.
In 2003 and 2004, the Ukrainian refineries had record high oil refining volumes – 21.2 million tons – over the last 11 years. The increase in oil refining volumes and marketable output made it possible to cover Ukrainian oil products demand almost fully by domestic products. At the same time, their export grew considerably. Ukraine's transition from import to export of oil products signals a positive change in its energy status and is in line with the strategy of the Government of Ukraine as regards state export policy formulation.
Oil Refining by Ukrainian Refineries in 1991—2005 (in '000 tons)
In 2005 Ukraine consumed 18.0 million tons of oil, 4.8 million tons of gasoline, 5.2 million tons of diesel fuel and 1.0 million tons of mazut. Oil inputs related to production totaled 20,700 tons, marking a 3% reduction.
Meeting the needs of the state in high-quality oil products requires reorganization of Ukrainian oil refining companies aimed to enhance oil refining efficiency, reduce refining-related energy consumption while strengthening the competitiveness of domestic companies. Such progress can be achieved only on the basis of fundamental restructuring of existing oil refining capacities and construction of new ones employing state-of-the-art processes and technologies.
Oil refining industry modernization should be divided in two stages. At the first stage (until 2015) it is necessary to complete the deep oil refining cycle, mostly by constructing conversion units, hydrocrackers and viscosity breakers, as well as coke-oven and bitumen installations. This will make oil refining efficiency grow to 73-75%. At that stage, it will be necessary to upgrade hydrotreating and catalytic reforming units, and to build isomerization and alkylation units with a view to producing high-quality motor fuels.
At the second stage (2015—2025), oil refining efficiency will be enhanced up to 85% by constructing deasphalting, tar demetalization and carbonization, vacuum gas-oil and asphalt-free oil hydrocracking units. New reformers, alkylation and polymerization units will be built at this stage, as well as new atmospheric vacuum pipe stills instead of the obsolete ones.
After 2025, it is mostly obsolete and worn-out units that will require replacement by new ones, which will ensure production of all basic types of oil products with refining efficiency being at least 90%, and at advanced processing lines at least 95%.
