Georgia’s Kulevi Refinery Prepares for Expansion

Why It Matters

The project will significantly boost regional refining capacity, reduce reliance on imported fuels, and position Georgia as a new hub for Euro‑5 compliant motor fuels and jet fuel, attracting downstream investors and enhancing energy security in the Black Sea corridor.

Summary

Black Sea Petroleum (BSP) has launched a 24,000 b/d mini‑refinery at Georgia’s Kulevi port and is already planning a multi‑phase expansion that could lift throughput to 5 mn t/yr (about 100,000 b/d) by early 2028. The initial build cost $150 million and includes utilities and infrastructure that will shorten the timeline for adding a second 3.3 mn t/yr crude unit, a Merox jet‑kerosene unit, and a vacuum‑block and bitumen unit slated for 2027‑28. BSP aims to diversify crude supplies from Azerbaijan, Kazakhstan and Turkmenistan and to begin producing Euro‑5 gasoline and diesel by the end of 2028, prioritising the Georgian market before exporting residual volumes. The expansion is backed by long‑term terminal contracts and spot‑trading flexibility to capture higher margins.