Good Year for Tyumen Oil Refiners

24.07.2013

Antipinsky Oil Refinery CJSC in the Tyumen Region enters a new development stage. In 2013, in particular, a unit which will swell the enterprise’s capacity up to 7.5 million tons p.a. what will account for approximately 2.6% of the total oil refining output in Russia is to be commissioned. In addition to that, off-site facilities, and, what is especially important in terms of environmental safety, up-to-date sewage treatment plants the construction of which is to be completed already in July will be put into operation.

Analysts consider the rapid development of the enterprise which is new for the Tyumen Region and the only in the Urals to be an undoubted advantage for the entire area since it will make it possible to reduce the share of transport costs forming part of the total value of oil products and fuel in particular. In the long run it will slow down the growth rates of fuel prices in the region. It is worth noting that the region distinguishes itself by great demand for oil products, and Antipinsky Oil Refinery may sell fuel to companies directly from the enterprise by loading it to small 5-30-ton tank trucks. Formerly the oil area had to transport light oil products from the Omsk and Perm regions.
Antipinsky Oil Refinery is a young enterprise, it is just nine years. The construction of the refinery began in 2004 after choosing a favorable location: on the territory of one of the largest oil-and-gas constituent entities, the Tyumen Region, where 72% of Russian oil and 91% of natural gas reserves are concentrated. Thus, Antipinsky Oil Refinery is the only oil refining enterprise of such level in the region and in the entire Urals Federal District. According to the refinery’s General Director Gennady Lisovichenko, no similar private enterprises have been constructed in Russia for already 30 years.

A Rapid Start

No matter what economic situation in the country is like financial performance of Antipinsky Oil Refinery turns to be impressive every year. For example, the 2012 revenues of the refinery grew by 27% making up 55.7 billion rubles, net profit grew by 10% and amounted to more than 1.25 billion rubles. Meanwhile the enterprise is at the stage of sustainable development. Two workflow phases have been put into operation at the refinery in the course of six years. Now the third phase is being built in energetic pace.
The first workflow phase with the estimated capacity of 400 thousand tons was commissioned in 2006. Already in 2008 the actual capacity of the first phase amounted to 740 thousand tons p.a. as a result of technical modernization. In May 2010 the second workflow phase of the refinery with the capacity of 2.75 million tons p.a. was put into operation. Then due to technical modernization at the end of 2012 its capacity achieved 3.5 million tons p.a. Since January 2013 the refinery is operating with the equivalent of 4.2 million tons p.a. And on January 29, 2013 at 9.00 a.m. the enterprise exceeded the 10 millionth index. Exactly that amount of tons of the “black gold” has been refined over nine years of Antipinsky existence. The commissioning of the third workflow phase the first stage of which is to be completed in the fourth quarter of the current year lies ahead. ELOU-AT-3 unit with the capacity of 3.7 million tons p.a. is to be commissioned as a result of what the enterprise’s refining capacity will reach 7.5 million tons of crude oil p.a.
Diesel fuel hydrotreating unit will be built at the second construction stage of the third phase which is planned to be completed by the end of 2014. It will make it possible to improve the quality of diesel fuel as required by Euro-5 standards, achieve the necessary freezing temperature providing for the production of winter and arctic diesel fuel. The oil processing depth will reach up to 94% at the third stage due to the commissioning in the 4th quarter of 2015 of a combined deferred tar carbonization unit with a fuel-oil vacuum distillation block. As a consequence, the output of diesel fuel will grow up to 50% of the total refining output.
It is also worth noting that in the 1st and 2nd quarters of 2016 the transfer to the production of high-octane gasoline of Euro-5 standard with the octane number of no lower than 95 points under research method will start due to the commissioning of the gasoline reforming unit with the catalyst permanent regeneration and isomerization block.
The investment program of the refinery also provides for the construction of a vacuum gasoil hydrocracking unit.
According to Investkafe analyst Grigory Birg the fact that now Antipinsky Oil Refinery is focusing on diesel fuel only has enabled the company to commission the first two phases ahead of schedule. It has taken place due to reduction of the company’s capital expenses and no need to build gasoline treatment units at initial stages. However, demand for gasoline in the Tyumen Region is great which circumstance makes the start of gasoline production by the end of 2016 well timed.

Unique Approach

This year some off-site facilities are to be commissioned simultaneously with the commissioning of ELOU-AT-3 unit: the tank farm for commercial diesel fuel with the volume of 80 thousand tons, the tank farm for crude oil with the volume of 60 thousand tons, up-to-date treatment facilities. The latter will be completed already in July and put into operation in Autumn, however, there are no analogs of the treatment process in question in the entire Urals Federal District.
Treatment facilities will occupy the area of 10.73 hectares. The enterprise has spent 3.1 billion rubles for their construction. Wastewater treatment process will consist of five stages. The relevant equipment will provide the refinery with purified industrial, rainfall, and domestic wastewaters. For this purpose preliminary, physical and chemical , biological treatment, advanced post-treatment, and disinfection will be carried out, and, finally, dehydration of trapped oil products, residues, and excess sludge.
Up-to-date technologies will make it possible to keep the Tura River intact and the water traffic uninterrupted in the course of operating treatment facilities, supply the refinery with the water of required quality, reduce the construction area four times as compared with the traditional treatment technology, minimize operational costs, scale down the negative impact on the environment. These methods of treatment enable the refinery to reuse up to 60% of purified effluents for technical purposes and improve the remaining 40% of water as required by hygienic standards applicable to surface water protection subsequently discharging them to the Tura River. The accredited ecological and analytical laboratory of Antipinsky Oil Refinery CJSC will exercise quality control over wastewaters at all stages. 
“As from the very beginning of Antipinsky Oil Refinery construction we paid special attention to the selection of up-to-date technological equipment meeting the most strict environmental standards, - Gennady Lisovichenko notes. - A number of technological solutions were taken into account at the design stage of the refinery making it possible to minimize the negative impact on the environment, and, among other things, significantly reduce water consumption what means the decrease of sewage discharge, pollutant emissions into the atmosphere, and prevent oil and oil-product spillage in the soil, surface and underground waters.”

Healthy Conditions

Even today more than one thousand people are working for the refinery and in two years this figure will grow twice.
The year 2013 will become significant for the refinery’s employees. According to the resolution of the Board of Directors an apartment house with 152 flats is being built by the enterprise for its specialists and foremost workers. Improvement of living conditions is not the only form of assistance rendered to the people employed at Antipinsky Oil Refinery. Social policy pursued by the enterprise includes a broad range of programs due to which healthy and safe labor environment has been created for the employees. It consists of high quality medical service, support of employees through the system of various kinds of financial assistance, compensations, and bonuses. Catering service subsidized by the owners of the enterprise has been organized for personnel at the refinery’s canteen. Sports events and corporate picnics which contribute to the maintenance of favorable psychological climate in the team are held on a regular basis.
In addition to that, the refinery provides finance to municipal institutions, as well. It subsidizes one of junior judo clubs in Tyumen. It renders direct financial support to Orphanage No. 66 for orphans and children deprived of parental care, as well as to boarding schools, clubs, cultural institutions, the Tyumen Regional Organization of the Russian National Society of the Disabled. Moreover, quite recently within the framework of the Easter Joy Festival the company provided substantial financial assistance to the 21-year-old Tolgat Esbolov from Tyumen. The money was spent for buying prosthetic devices.

Prospects

According to Investkafe analyst Grigory Birg the new oil refinery in the Tyumen Region may become quite a significant player on the oil refining market. “In case of successful completion of the project it may serve as an example for other market participants and, as a result, enhance the investment attractiveness of Russian oil-and-gas sector,” the analyst points out.
Grigory Vakhitov, Director of the BKS-Premier Urals branch, agrees with him. According to Vakhitov the strategy of the refinery is well-chosen. “The refinery is being built considering the fact that we will have more cars with diesel engines. Now about 20% of cars in Russia operate on diesel fuel, whereas the entire Europe where people often work distantly from home uses cars with the TDI mark (modern diesel engine (turbocharged direct injection) – editor’s note). It also refers to up-market car brands. It is also considered that soon changes will take place in Russia, too, and all people here will use diesel fuel since it is more cost-effective,” Vakhitov emphasizes.

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