A new oil refinery will be built by 2006 by the TAIF company in Nizhnekamsk, Tatarstan. According to Rosbalt the refinery will be able to produce more than 530 thousand tones of gasoline and more than 100 thousand tones of diesel fuel per year.
A symbolic ceremony beginning the construction of the new refinery took place in Tatarstan on November 10. Tatarstan President Mintimer Shaymiev participated. Heavier construction work is scheduled to begin in May 2004. The new building project was developed with the help of the Moscow Institute for Processing Oil. The cost of construction of the oil refinery is estimated at USD 76 million. The company is expected to earn USD 200 million yearly from exploitation of the new refinery. Annual profits are expected to reach USD 71 million.
At the same time, construction of another oil refinery is underway at Nizhekamsk. The refinery will exclusively process heavy carbon oil. In 2004, Tatarstan is expected to extract 30 million tones of oil, of which 7 million tones will be processed at Nizhnekamsk. An additional 7 million tones of oil will be processed at the TAIF refinery.