ANCAP's La Teja refinery has a refining capacity of 50,000 barrels of oil per day and an average conversion capacity. This results in medium API gravity (30-34°), thereby obtaining an optimal economic balance between the cost of crude and demand patterns.
Long-term demand projections show probable further increases in the relative share of diesel and gasoline fuels. As a result, their growth rates will be greater than overall demand growth, which is forecasted at 1.3% annually. This forecast, along with scenarios of a relative decrease in the supply of medium API gravity crude oils as compared to heavier crude oils, has led to an evaluation of investments to increase refinery conversion.
An increase in conversion capability implies that by refining the same daily volume of heavier crude oils, the production capacity of "premium" products such as diesel and gasoline will remain the same or even increase and fuel oil production will fall.
As such, ANCAP has conducted studies of various refining unit configurations to meet this goal. The studies show that the coker and mild hyrdocracker units have the best economic results.
The installation of a coker unit with a processing capacity of approximately 17,000 barrels per day would mean a change in the refinery production matrix, since petroleum coke would be obtained (instead of fuel oil) which is an optimum fuel for electricity generation, cement kilns and other uses.
Diesel and gasoline products have low sulfur contents and comply with the requirements of the most demanding markets in terms of specifications.
Consultants estimate that the investment for this significant change in the configuration of the La Teja refinery is approximately USD 1,000 million. However, it should be considered that these estimates were made in 2008 when construction costs and materials had peaked. Therefore, the final amount is estimated to be substantially less.
The timeframe for project implementation has not yet been defined, as the Executive Branch must first grant approvals. Start up of the new configuration could occur by 2016.
