From Fuel Oil to Euro-5: Oil and Gas Region Launches Its First Production of High-quality Fuel
Over 2.7 billion US dollars is the amount invested in the construction and gradual modernization of the oil refining facility in the Tyumen Region over 11 years. The refinery has finally launched the production of Euro-5 compliant diesel fuel, but it still has some way to go before it can start manufacturing high-octane gasolines. It is by no means surprising: creating a modern oil refinery is one of the most financially challenging industrial projects.
The refinery started from primitive fuel oil distillation using technologically primitive albeit imported equipment: its ex-owners failed to put it into operation and it just sat there doing nothing until a buyer turned up. He decided to start with small refining volumes as his financial resources did not allow him to quickly move forward with the project. His annual turnover was initially a few thousand tons, while today it has grown quite considerably even by Russian standards and reached 9 million tons of crude oil per annum. For the sake of comparison, the oil fields located in the southern part on the region produced a total of 12 million tons of crude oil in 2015.
However, total victory has not yet been achieved. Fuel oil distillation is still there at the refinery. It is planning to get rid of it next year with the commissioning of its deep refining complex. According to the refinery’s process engineers, the refining depth will increase from today’s unenviable 52 to ideal 97 percent. It is essentially a breakthrough. The average refining depth at RF oil refineries (a total of 34 in the county) is 72 percent, while in the U.S. it exceeds 90.
Half of the Tyumen refinery’s production will be accounted for by diesel fuel, part of which, incidentally, is exported. The refinery will start producing coke which is in demand in metallurgical industry, as is well known. And perhaps the most important piece of news is that the refinery intends to start manufacturing gasoline of two popular Euro-5 grades. For the first time in a half-century long history of West Siberian oil and gas province, high quality motor oil will be produced on its territory. It will be the first time for the entire Ural District as well. However, it’s too early to set fireworks off just yet: high-octane gasoline is still part of business plans. The equipment for its production is not even yet assembled, it is expected to arrive in one and a half or two months.
State support rendered to the new production facility cost the region hundreds of million rubles in tax revenue shortfalls. But its gain is obvious too: in addition to stable tax revenues, the refinery created over one thousand new jobs. And the importance of diversification of regional economy speaks for itself.
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