1. Antipinsky Oil Refinery: A New Chapter in Refinery’s History

Antipinsky Oil Refinery: A New Chapter in Refinery’s History

Opening the grand ceremony celebrating the commissioning of the second start-up complex of Workflow Phase III, the Tyumen Region Governor Vladimir Vladimirovich Yakushev noted that the refinery had made a very important step forward, as the manufacturing of Euro-5 compliant diesel meant deep processing of crude oil and the solution to the challenges facing this country. Vladimir Vladimirovich also thanked on his own behalf and on behalf of the Tyumen Region Government the shareholders of Antipinsky Oil Refinery for not stopping the project and for their commitment to follow through with it.

It is a truly unique event for the entire Tyumen Region. For the first time in over thirty years, a greenfield non-state refinery independent from vertically integrated oil companies started the production of diesel fuel meeting Euro-5 standard. Next year, with the commissioning of a combined deferred tar carbonization unit with a fuel oil vacuum distillation module the refining depth will reach 97.4%. Moreover, in 4Q 2016, an integrated high-octane gasoline production unit will be commissioned enabling the Antipinsky Oil Refinery to start the production of Euro-5 highest quality gasolines (AI-92 and AI-95).

It should be noted that the commissioning of the diesel fuel hydrotreating unit was preceded by thoughtful and serious work performed not only by the refinery’s employees, but also by its partner, general designer of the diesel fuel hydrotreating unit State Unitary Enterprise “Institute of Petroleum Refining and Petrochemistry of the Republic of Bashkortostan” and the licensor of the diesel fuel hydrotreating unit and hydrogen production unit HaldorTopsoe. As part of the process, auxiliary facilities were put into operation including an ultra-compact water recycling system with the nameplate design capacity of the recycling water supply unit of 7000 m3/hr; sulphur production unit with a granulation module, hydrogen production unit, industrial nitrogen and air supply units; flare facilities. The refinery also commissioned a liquefied petroleum gas production shop intended for the shipment of PA and PBA commercial-grade liquefied motor gases.

The refinery’s aggregate capacity is over 9 million tons of oil per annum. Thus, over 9 years, the Antipinsky Oil Refinery’s output has grown 22-fold

“Today, the refining capacity achieved by our refinery is 9 million tons per annum,” emphasized the refinery’s Director General Genneady Lisovichenko congratulating the employees on the refinery’s 9th birthday. “However, it is the quality and not the quantity that matters to us. A new chapter has been written in the Antipinsky Oil Refinery’s development history, and it would be no exaggeration to say that it has been written thanks to you, dear refinery employees.” The head of the company is convinced that the refinery’s employees numbering about 2000 people today with their professionalism, competence, responsibility and commitment are not only strengthening the positions of the enterprise, but also contributing to the development of oil refining industry in the country.

High quality of diesel fuel has been confirmed by the Declaration of Compliance to Technical Regulations of the Customs Union issued to the Antipinsky Oil Refinery. The production of diesel fuel has been approved by All-Russia Oil Refining Research Institute OJSC granting the refinery the right to sell the new product. However, the refinery is not intending to rest on its laurels. It will continue with the implementation of its major investment project to improve the refinery’s processing complexity, increase the output of light petroleum products and the refining depth, and to increase the refinery’s competitiveness in the oil industry as a whole.

Building Capacity

The development of the refinery throughout its nine-year history has been aimed at the continuous growth of output and quality of products manufactured. Its Workflow Phase I with the design capacity of 400 thousand tons per annum was commissioned in 2006. Within as little as two years, as a result of modernization, the actual capacity of the refinery’s Workflow Phase I reached 740 thous. tons per annum.

In January 2014, ELOU AT-3 oil refining unit with the capacity of 3.7 MTPA was commissioned. The unit was recently modernized bringing the refinery’s total capacity to over 9 MTPA. Thus, over 9 years, the Antipinsky Oil Refinery’s output has grown 22-fold.

Refinery’s Prospects

At the third stage of Workflow Phase III, the refining depth will reach 97% by the commissioning of a combined deferred tar carbonization unit with a fuel oil vacuum distillation module (2Q 2016). The resulting diesel fuel yield will be increased to 50% of the total refining volume. The process licensor and basic design developer is Foster Wheeler (USA). Coke obtained by tar carbonization is a finished product highly demanded in metallurgical industry. As of today, the construction of foundations has been complemented, coke drums have been delivered and assembled, deferred carbonization unit equipment is being hooked up, the vacuum fuel distillation unit has been assembled and gone into a pre-commissioning stage. The transition to the production of Euro-5 compliant gasolines with octane ratings of 92 and 95 points measured using the research method will take place at the fourth stage of Workflow Phase III with the commissioning of the gasoline reformer with continuous catalyst regeneration and an isomerization unit.

Total investments in the construction and modernization of Antipinsky Oil Refinery JSC at year-end 2015 amounted to USD 2.5 bn

As of today, foundations have been built, utility lines laid down, structural metal manufactured, the continuous catalyst regeneration system, reactors and column equipment assembled at the high-octane gasolines production unit. Orders for the production of core process equipment have been placed. Process equipment is expected to be delivered to the refinery in February. The fourth stage provides for the construction of a vacuum gasoil hydrocracking unit with the capacity of 2.7 million tons per annum in 2017-2018. The raw material to be used for the unit will be vacuum gasoil and heavy coker gasoil produced by the fuel oil deep conversion unit.

At present, the refinery refines crude oil to produce industrial fuel oil, bunker fuel, straight-run gasoline, Euro-5 diesel fuel (of summer and winter grades), low-viscosity marine fuel, propane-butane autogas, sulfur. With the completion of all process stages in 2016, the refinery will start producing a wide range of petroleum products, in particular, AI-92 and AI-95 gasolines (meeting Euro-5 standard), diesel fuel of summer and winter grades (meeting Euro-5 standard), bunker fuel (including low-viscosity marine fuel), propane-butane autogas, vacuum gas oil, petroleum coke and granulated sulphur.

Transportation System

Parallel to the construction and commissioning of its refining capacities, Antipinsky Oil Refinery CJSC acquired and renovated Antipino railway station, next to which the refinery’s Finished Product Section (FPS) was built. It is intended for the shipment of light petroleum products (gasoline, diesel fuel) by rail.

The section is equipped with two loading racks enabling simultaneous loading of 71 rail tank cars. The commissioning of the Finished Product Section increased the refinery’s total petroleum product loading capacity to 8 MTPA. The refinery is connected to Transneft trunk pipelines with the throughput capacity of 7.2 MTPA and diesel fuel product pipeline with the capacity of 1.8 MTPA. Also, the refinery has the facilities to sell fuel ex-factory using 5 to 30 ton road tankers.

Moreover, to meet the need to expand traffic and carrying capacity of railway tracks, the refinery commissioned a new receiving and shipment yard for dark petroleum products. The length of the additional tracks is about 6 km, which is more than double the length of the existing tracks. The new railway tracks will be used to ship the products obtained from the elemental sulfur production unit and fuel oil deep conversion unit.

Environmental Agenda

When building new and upgrading its existing facilities the Antipinsky Oil Refinery pays special attention to minimizing the environmental footprint of its production process. These issues are an indispensable part of the refinery’s economic activity management system. The Antipinsky Oil Refinery is one of the major water consumers in Tyumen. Therefore, the refinery is committed to continuous improvement of its manufacturing technology, implementing wastewater treatment methods, monitoring water consumption and water disposal, and the quality of wastewater discharged. Among the projects aimed at minimizing environmental risks are the Refinery’s existing five-stage wastewater treatment facilities.

Vladimir Yakushev thanked on his own behalf and on behalf of the Tyumen Region Government the shareholders of Antipinsky Oil Refinery for not stopping the project and for their commitment to follow through with it.

Wastewater coming to the treatment facilities goes through a full purification cycle before it is discharged into river Tura. Treated wastewater passed through carbon sorption and UV decontamination units meets all the requirements imposed on wastewater discharged into fishery waters. All waste undergoes necessary treatment, after which it can be reused: trapped petroleum products as crude hydrocarbons, residue and sludge as backfill material during construction works.

The implementation of this project has won the refinery “Water of Russia” First National Water Industry Award in the “The Best Project Aimed at Reducing Water Pollution” category in 2014. As part of International Business Forum “Russia – Serbia 2015: Prospects of Trade, Economic and Humanitarian Cooperation” held in Belgrade (Serbia), the Antipinsky Oil Refinery CJSC was awarded a diploma of the "Global Eco Brand" main international environmental Award in the “Leader in Social and Environmentally Responsible Business” category.

On November 19, Interfax-Era, environmental and energy rating agency, published its fundamental efficiency appraisal rating for 150 major companies operating in the real sector of the Russian economy for 2014. The Antipinsky Oil Refinery, having come in second, ranked among the rating leaders. It should be emphasized that the company made a tremendous breakthrough in the past year having advanced from the 44th to the 2nd position.

Financing Issues

The Antipinsky Oil Refinery’s production scheme is designed in such a way that even in crisis conditions the refinery will be profitable. The refinery’s executives are expressing their special gratitude to the Tyumen Region Governor Vladimir Yakushev.

The company’s plans provide for further development of its production base to improve to improve efficient use of natural resources and increase the output of petroleum products meeting the highest quality standards. The construction of a refinery with a maximum possible oil refining depth producing a complete range of high-quality engine fuels and petrochemical products requires enormous capital investments. Investment funds for further development of the Antipinsky Oil Refinery were raised at the XIX Saint-Petersburg International Economic Forum held this summer traditionally in Russia’s northern capital.

In 2016, the Antipinsky Oil Refinery will switch over to the production of Euro-5 compliant high-octane gasolines

The refinery entered into a non-revolving credit facility agreement with Sberbank of Russia for the amount of over RUB 15 bn.The loan funds will be used to finance the construction of the combined high-octane production unit enabling the Antipinsky Oil Refinery to produce 480 000 tons of Euro-5 compliant AI-95 gasoline per year. It will cover AI-95 motor gasoline shortage in the Tyumen Region and partially in the Urals Federal District and help to create additional competition for major petroleum products market players to curb the price growth in that area.

Public Recognition

“Our company shows high growth rates. It is, first and foremost, attributable to large investments in the production development,” says Gennady Lisovichenko, Antipinsky Oil Refinery’s Director General. “The refinery’s large-scale work of almost ten years has been confirmed by the National Rating Agency at “А+”.

On November 17 – 20, 2015, the Antipinsky Oil Refinery successfully completed a second quality management system audit for compliance with ISO 9001:2008 international standard requirements conducted under the supervision of a leading auditor – BUREAU VERITAS Certification. The results of the refinery’s second compliance audit allow for the conclusion that, at present, the Antipinsky Oil Refinery’s quality management is being effectively implemented, properly maintained and improved according to ISO 9001:2008 requirements. The refinery’s compliance certificate was extended to December 17, 2016.

In the middle of November this year, RBC published its rating of TOP-50 fastest growing companies in Russia. The Antipinsky Oil Refinery ranked 14 in the rating. The company’s revenue for 2014 totaled RUB 124.6 bn with a 49% average annual increase.

In 2015, the Antipinsky Oil Refinery ranked 77th on the RBC rating of 500 Russian business leaders, which included all largest companies including state-owned ones. The Antipinsky Oil Refinery ranked 50th having risen 27 positions in Forbes 2015 Rating of Russia’ 200 Largest Companies.

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