1. Where and at What Prices to Buy Diesel Fuel? New Oil Refinery Commissioned in Tyumen Region.

Where and at What Prices to Buy Diesel Fuel? New Oil Refinery Commissioned in Tyumen Region.

01.04.2006

The question was posed to Gennady Lisovichenko, Director of Antipinsky Oil Refinery.

Why do the products of Tyumen oilmen have all chances to be sold cheaper than those of oil refining giants?

Today this popular type of motor fuel which is in great demand is supplied to our region from Omsk and Ufa, but already very soon the representatives of agro-industrial and construction sectors of the Urals Federal District will have an additional option: a new refinery is to be commissioned in the suburbs of Tyumen (the settlement of Antipino). If proprietors of refueling stations opt for the Tyumen producer as well it will also be cheaper for an individual car owner to refuel his “iron horse.”

So, why do the products of Tyumen oilmen have all chances to be sold cheaper than those of oil refining giants? The issue is not about the altruism of the new enterprise’s leadership, it is the result of overhead cost savings. The price of products delivered, for instance, from Ufa Oil Refinery includes the cost of oil pumping (very often from the same Tyumen Region) and a return railway tariff; therefore, as a result consumers have to pay for all these things. Moreover, Antipinsky Oil Refinery can also make use of the strategic advantage of its location, i.e. its close proximity to the Transneft pipeline, rail and motor trunk lines, gas piping, and electricity transmission lines, labor resources of a large city. All these conditions favorably tell on pricing.

Cost effectiveness is achieved on account of the way of forwarding POL materials as well. If products from other regions are delivered in 60 and 120-ton railway tanks Antipinsky Oil Refinery uses its road-tanker loading rack making it possible to meet the demands of local consumers. A possibility to receive products in small volumes (from 5 cum) will be especially appreciated by small businesses, oil tank farms, and agricultural companies. The economists of the refinery have calculated that delivery by motor vehicles will be more cost-effective for the southern areas of the Tyumen Region, the nearby areas of the Kurgan and Sverdlovsk Regions, so no problems of selling are expected by the new enterprise.

The authorities of the Tyumen Region pay much attention to the new refinery, officials in charge of the Sverdlovsk Railways back it, though the refinery is a private commercial project. The business plan of building the enterprise is implemented jointly with the founder, the Moscow-based holding company “Neftegazokhimicheskie Tekhnologii”, and with the participation of Austrian Raiffeisen Bank which has already won respect in our region.

The new project proponent and director of the new enterprise Gennady Lisovichenko has noted that from the very beginning the corporate strategy was intended for a long-term development. That is why most advanced technologies applied in the area of oil refining were used for the construction of the enterprise. Equipment of Petrofac, a reputed American company, forms the basis of the built complex. The management of the enterprise understands that in our contemporary environment the products of maximally deep and diversified oil refining only can be profitable and competitive. That was the reason why the refinery’s offsite utilities were set up considering its future extension already in the course of the first-phase construction. Such vital commodity for the country as road bitumen is expected to be produced already in 2007 and in the long-term perspective it is planned to output high-octane gasoline and environmentally friendly diesel fuel. It goes without saying that to implement these plans the refinery will need additional financial resources which its Moscow founders are going to provide, as well as additional areas for extension for which purpose the enterprise needs assistance to be rendered by the Tyumen Regional Authorities.

Novye Tekhnologii, Investitsii Journal No. 2

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