1. A New Development Stage. Antipinsky Oil Refinery Launches Euro-5 Diesel Fuel Production Facility

A New Development Stage. Antipinsky Oil Refinery Launches Euro-5 Diesel Fuel Production Facility

09.12.2015

The Antipinsky Oil Refinery started a new stage in the enterprise development by the commissioning of a hydrotreating unit to produce Euro 5 highest quality diesel fuel. As of today, the refinery’s hydrocarbons refining depth is 52 percent. Next year, the refinery is planning to increase it up to 97 percent and commission another production facility. 
Symbolic though it is, the launch opens up a major new stage in the Antipinsky Oil Refinery’s development. The refinery started producing Euro-5 international standard diesel fuel commercially – 3 million tons per annum, for now. The amount of fuel produced will be subsequently increased by one million tons. 
“In 2016, new Euro-5 standard requirements will be introduced at the refinery, and we should be ready for them. The requirements with respect to the improvement of our fuel’s environmental properties and other technical nuances need to be met,” said Sergei Murzin, Antipinsky Oil Refinery’s Chief Engineering Officer. 
The production of diesel fuel meeting the highest standards has been made possible by the construction of the hydrotreating unit. It took one and a half years to build it, and it is substantially in operation now. Passing through it, diesel fuel undergoes the final stage of refining to be cleaned of hydrogen sulfide.

“Diesel fuel entering the unit is heated to a certain temperature, gets mixed with a hydrogen-containing gas triggering a hydrodesulfurization reaction which takes place on a catalyst loaded into the reactors,” explained Dmitry Zabolotny, Head of the Antipinsky Oil Refinery’s Process Shop.

Today, the Antipinsky Oil Refinery is the largest investment project in the Ural Region. But back in 2005, when the construction just started, things were not so easy. There were difficulties in land title registration, railway tracks laying. It was not until the third try that the refinery was able to commence the works. The refinery took a 25 million US dollar loan. The local authorities helped with the documents. This work still goes on. 

“Yes, questions do arise. In fact, lots of questions arise. Sometimes they are incredibly minor, but they do not let us move forward. We have to turn to the authorities for help. There are instances where power has to be used and it is perfectly right. Sometimes I do have to fall back on the Governor’s support,” said Gennady Lisovichenko, General Director of the Antipinsky Oil Refinery.

Land is a problem. The refinery is expanding, so it needs more land. The lands concerned are federally owned. It takes a long time to officially change the land use designation. A project like this cannot exist without government support. The authorities have granted the refinery corporate property tax relief. 
“Our goal is to double our economics by 2020. It is an incredibly difficult challenge considering our conditions. But we will struggle along as best we can. We will do everything to get over the high bar we have set ourselves,” stressed Vladimir Yakushev, the Tyumen Region Governor. 
The refinery is also pursuing its plans. Today, its oil refining capacity is 9 million tons per annum. Back in 2005, it was 20 times lower.  Then, the refinery covered up to 30% of regional fuel demand. Now, there is enough fuel for the entire Ural Region. It is also exported. And, most importantly, the price of fuel per ton is one thousand rubles lower than the competitor’s prices. 
“There are no reasons for the prices to grow, because we are a far off region most closely located to oil production facilities. The balance toward lower prices compared to Central Russia will always be there in our favour. It should not be any other way here,” believes Dmitry Mazurov, Chairman of the Antipinsky Oil Refinery Board of Directors.

As the next stage, the refinery will focus on quality and product range. In 2016, the refining depth will almost double. Going forward, the refinery will launch the production of Euro-5 compliant gasolines.

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