Alliance Group To Invest USD 450-500 Mn In Kherson Refinery (HNPK) By 2010

Reconstruction of the Kherson Refinery is to be designed by ABB Lummus Global (United States) before November 2005. The program plans to increase the light oil and diesel fuel output at the refinery to 90.64%. Specifically, output of light oil products will grow to 54.66% by 2010. Alliance Ukraine, which is affiliated with Russia’s Alliance Group, owns 27.64% of the Kherson Refinery and influences its operations. Concorde Capital: Like the Odesa and Galychyna refineries, the Kherson Refinery has significant CapEx plans. When realized, these projects will result in a light oil product and diesel output increase to over 90%, a significant improvement from the current 60?65%. This will improve refinery efficiency, as demand for light oil products and diesel fuel is to steadily improve, unlike that for oil fuel, which currently constitutes 35-40% of refinery output.