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Rosneft to build $7 bln refinery on Russia's Pacific coast

OAO Rosneft, Russia's state oil company, plans to build a $7 bln refinery at the end of a planned pipeline to the Pacific coast from Siberia so it can start selling fuel products to Asia and the US.

The refinery will be able to process up to 20 million tons of crude a year (400,000 barrels a day), Rosneft Vice President Alexander Sapronov said in London today. As much as 90% of the facility's products will be exported to Asia, with a small amount going to the US, he said. Russia, the world's second-biggest oil supplier, wants to tap surging demand for oil products in China and other Asian markets. President Vladimir Putin earlier this month urged business leaders to invest in processing industries to wean the company from raw materials exports. „We consider the Asia-Pacific region to be most promising,” Sapronov said. The refinery will cost between $5 billion and $7 billion, based on preliminary estimates, he said. Rosneft is also considering building a petrochemicals plant by the refinery to create higher-value products, he said. (Bloomberg)