Expert: Russia excessive refining capacity at 25 mln tns in 2017

MOSCOW, Jan 26 (PRIME) -- Russia will have 25 million tonnes of excessive refining capacities in 2017 basing on demand and supply plans, Vygon Consulting Managing Director Grigory Vygon told reporters on Thursday.

“We clearly have excessive oil refining capacities and can cut some of them. There will always be demand for crude oil, but oil products may pose a problem. We have an excess of 25 million tonnes of primarily processed oil, and will have extra 30 million tonnes in 2018,” the expert said.

Supply and demand are misbalanced – Russia plans to produce 40 million tonnes of gasoline in 2017, while demand only amounts to 35 million tonnes.

Vygon said that the problem roots in excessive government support of refining, including with the help of export duties.

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