Tour of Tyumen Production Facilities

01.01.2016

In order to see how Tyumen industrial enterprises actually “live”, tmn visited the city’s key production facilities and spoke with their management.

The first serious attempts to “get off the oil needle” were taken in the Tyumen Region several years ago, when the region was shorn of its mineral production tax. The government placed stakes on non-resource industries and started to search for new investors.

During that time, the development scenario based on raw materials lost relevance at the national level. The crisis has crippled businesses in the neighboring regions, but the Tyumen Region with its accumulated investment capital feels quite comfortable. The industrial production index has been maintained at 115%, production output and gross regional product have doubled over the last seven years.

It is a favorable investment climate that makes all the difference. Regional authorities create “fair weather” for businesses by reducing the tax burden for new enterprises, providing loans and subsidies, developing the scientific cluster and training specialists for new production facilities.

The Tyumen Region Department for Investment Policy and State Support of Entrepreneurship has developed a special turn-key administrative support system for investors: managers appointed by the Department help business companies with land registration, connection to utility networks, obtaining necessary permits on a one stop shop basis.

The region’s big advantage, as investors note, is that it takes care of setting up infrastructure for industrial zones. Municipalities are building industrial parks – ready to use sites complete with utility lines. In total, the region will have five such parks: the first two will be completed in 2016 in Borovskoye and Bogadinskoye settlements. There are already more than 15 potential residents, three of them are large foreign companies.

The region has 40 investment project business cases in its arsenal. The most promising of them represent machine building, metal processing, transportation, food industries and agriculture. Statistics attest to a real industrial breakthrough: over the last decade, more than 30 large production facilities and investment project have opened up in the Tyumen region, 24 of which in the last two years.

tmn’s editorial board toured around Tyumen’s “industrial ring” asking the investors why they had chosen that region and what difficulties they were facing under the current economic conditions.

Due to the challenging economic situation in Russia, many Ural regions are suffering a considerable downturn. Some production facilities in the neighboring regions can no longer cope with the market conditions and suspend their operation. The Tyumen Region is one of the few constituent entities of the RF who managed to maintain stability under today’s challenging circumstances. It is chiefly attributable to large production facilities, who continue their operations against all the odds and even manage to improve their performance indicators.

tmn magazine and the Tyumen Region Department for Investment Policy and State Support of Entrepreneurship found this period a proper time to initiate a special project titled “A Tour of Tyumen Production Facilities” to see how things really stand there. We visited the city’s key production facilities and spoke with their directors. The first company we visited was the Antipinsky Oil Refinery, where we were welcomed by its Director General Gennady Lisovichenko.

The only in the Ural Federal District and the first in post-Soviet history commercial-scale oil refinery independent from vertically integrated oil companies, whose capacity is 9 million tons per annum and the quality of diesel fuel produced meets Euro-5 standard. In 2016, the refining depth will reach 97% and the production of Euro-5 compliant gasoline will be commenced.

The Antipinsky Oil Refinery is considered to be the flagship of the Tyumen Region’s “investment projects era”: its construction started in 2004 and as early as in 2006 the first commercial petroleum product batch was produced by the first oil refining unit. Today, the refinery operates three workflow phases producing stable natural gasoline, Euro-5 compliant diesel fuel, bunker fuel, low-viscosity marine fuel, fuel oil and propane-butane autogas.

The Antipinsky Oil Refinery is considered to be the flagship of the Tyumen Region’s “investment projects era”: its construction started in 2004 and as early as in 2006 the first commercial petroleum product batch was produced by the first oil refining unit.

In 2016, the refinery will launch deep refining processes enabling it to reach the refining depth of 97% and start the production of Euro-5 compliant gasoline. After the completion of all the stages of Workflow Phase III, the refinery will start producing А-92 and А-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.

In 2015, we commissioned our diesel fuel hydrotreating unit, and next year, we will complete the construction of and commission a combined deferred tar carbonization unit with a fuel oil vacuum distillation module and a combined high-octane gasolines production unit. It will enable us to become one of Russia’s most modern and high-tech refineries,” says Director General Gennady Alexeevich Lisovichenko.

Just like any enterprise, the refinery needs investment. According to the latest data, investments in the Antipinsky Oil Refinery have by now totaled over USD 2.5 bn. The Antipinsky Oil Refinery chose Sberbank of Russia as its strategic partner. In 2013, Sberbank of Russia opened a USD 1.75 bn credit line for the refinery. A few months ago, this largest Russian bank issued a loan of RUB 15.173 bn to finance Tyumen’s promising production facility. The funds are being used for the construction of the refinery’s combined high-octane production unit. It will enable the Antipinsky Oil Refinery to produce about 500 thousand tons of Euro-5 compliant AI-95 gasoline thereby fully covering the demand for this kind of fuel in the Tyumen Region and partially the Ural Federal District. The refinery will become a competitor to the major players in the petroleum product market, which will eventually curb the price growth.

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