Russia’s Planned Idle Refining Capacity Raised by 67% for October
Russia’s Planned Idle Refining Capacity Raised by 67% for October | OilPrice.com
Russia has raised the refining capacity volumes it expects to be idle this month by 67% compared to an earlier plan, due to scheduled maintenance at major refineries, Reuters estimates showed on Wednesday.
In October, Russia expects to have 4.0 million metric tons of refining capacity offline, per Reuters’s calculations based on figures provided by industry sources.
While that’s lower than the idle capacity in September, at 4.5 million tons, it is still higher than previously planned.
Previously postponed maintenance at Rosneft’s Novokuibyshevsk Refinery in southwestern Russia and maintenance at a unit of Lukoil’s NORSI refinery have now increased the capacity that would be offline in October.
In addition, Rosneft’s refinery in Tuapse on the Black Sea has reportedly halted crude processing since October 1 because of low refining margins, industry sources told Reuters earlier this week.
More than half of this month’s idle capacity is set to return in November, when Russia’s idle primary refining capacity is expected at 1.2 million tons, per Reuters estimates. If some of the maintenance works are extended, however, the idle capacity in November could be higher, at 1.8 million tons.
Apart from some seasonal maintenance, Russia’s refining capacity has seen this year more idle units because of Ukrainian drone attacks on Russian oil and energy infrastructure.
Energy installations have been key targets in the conflict by both sides.
Ukrainian attacks on Russian refineries and other energy infrastructure have become a fixture this year, with drones the weapon of choice for conducting the strikes.
In recent months, Russia has seen higher-than-expected maintenance and repairs at its refineries. In addition to unplanned repairs to fix damages from the drones, some refineries have been undergoing planned maintenance.
This dragged down Russia’s fuel output and exports earlier this year.
In the middle of August, the Russian government said that Moscow is extending its ban on gasoline exports from October to the end of December 2024, as it seeks to keep domestic supply stable amid seasonal demand and scheduled repairs at refineries.
By Charles Kennedy for Oilprice.com
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