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The Yaya Oil Refinery: the second step

The Yaya Oil Refinery that is constructed in the north of the region is one of the most significant "acquisitions" in the economy of the region: in Kuzbass they did not know examples of such a level of oil refinery before. The new plant was constructed in record time, and in June 2013 the company received a license, which gives the right to carry out works at hazardous production facilities. The first stage is put into operation, and now the Yaya Oil Refinery is a structural unit of JSC “NEFTECHEMSERVIS” comes to the rated capacity, designed for this stage, i.e. processing of three million tons of crude oil per year.

- The breakdown for stages - “the first stage, the second stage” is rather conditional, - says the technical director of “NEFTECHEMSERVIS” Yury Stepanov. - Speaking of oil refining, there is no limit to perfection! It is possible process up to 100 percent of oil; it all depends on the quantity of processes. The so-called first stage was needed to build all the infrastructure and capacity to put into operation facilities for primary oil refining. Utilities are constructed with expectation of development, which was initially foreseen by the general plan of the plant. We say that it will be several stages that lead to deepening of refining and improving products quality.

What does the plant represent today? Selection of the site for construction is due to the proximity to the main oil pipeline "OJSC" AK "Transneft", of the railway, the substation of "The Federal Grid Company". The plant is located a few kilometers away from Anzhero- Sudzhensk, although geographically belongs to the Yaya district. Hence - the name the Yaya Oil Refinery.

- We produce three commercial products: diesel fuel, straight-run gasoline, fuel oil, and we ship them to consumers, industrial plants - continues Yury. - It should be noted that the straight-run gasoline is not what is filled into vehicles; this fuel is to be sent for further processing at petrochemical plants, such as Tomsk plant as raw material for production of polypropylene. Diesel fuel does not yet meet the standards of the class "Euro -4" and "Euro-5" under the sulfur content, it is intended for those fields of industry where there is no restriction under the class. Fuel oil is supplied to the Far East. If we talk about the infrastructure facilities required for operation of the plant, we have constructed the delivery and acceptance point where we accept oil, the Commodity Park with tanks, which contain primary oil and oil products, the unit of primary oil processing, stepdown substations. Sewage treatment plant have been commissioned, they are designed with the latest techniques. Under the technical specifications the plant may dispose into the river Bolshoi Chindat almost distilled water. Today we have almost achieved this by minimizing the content of harmful impurities and executing all environmental protection activities.

The products of the Yaya Oil Refinery go to customers by rail, therefore for shipping of petroleum products a station was built with loading/unloading racks and recuperating plants. Thus, all evaporation released at the time of loading are captured, transferred to petrol and returned in tanks. “Generally speaking, when at the plant, specific smell is not felt" - assures Yury Stepanov.

The plant plans in the coming years to increase power and to process up to 6 million tons per year. This is not dreams: the processes for deep processing of petroleum products produced in the primary distillation cost effective with production capacity higher than 3 million per year. The plant for hydro treated diesel fuel is being designed, which will make the plant products competitive at the domestic and foreign market. These products can go not only for industry, but also directly to consumers. Production of diesel fuel of "euro" standard has been planned for the end of 2016. In addition, production of granulated sulfur is planned, which is also in demand at the market.

Output of fuel oil is about 45 percent of total production. Regulatory documents provide the depth of processing more than 75 percent. Introduction to the process of vacuum distillation of oil and the unit of a delayed coking will increase production of "light" petroleum products. By 2020 it is planned to reach a new milestone: after starting the delayed coking unit up to 250 thousand tons of coke per year will be produces. Gasoline fraction is 15 percent of the volume of processing. But with this kind of product the Yaya oil refinery will begin more extensive work after increase of capacity.

 - In Russia there are few projects like this, - says Yury Stepanov. - The great merit of the governor and his team in the fact that our shareholders decided to invest into such a project exactly in Kuzbass. Because they knew that full support of the regional authorities was guaranteed. Aman Gumirovich from the very beginning held construction under personal supervision. And we are very grateful to the mayor of Novokuznetsk Sergey Kuznetsov, we have been working actively in the period when he was deputy governor on industry, and with his assistance we were able to resolve many issues very promptly.

A quadripartite agreement is now under signing with government agencies - the Federal Antimonopoly Service, Rostekhnadzor, Rosstandart and the management of the company "NEFTECHEMSERVIS." This is so-called legitimation of the new enterprise, its recognition as a full member of the Russian oil refining market.

- Such an agreement is concluded both with small refineries and with vertically-integrated structures - for example, "Lukoil" and "Rosneft" - says Technical Director of "NEFTECHEMSERVIS." - We undertake obligations to the Government - when and in what years we introduce certain capacities. Rosstandart brings in its indicators our plans to bring our standards to the international and Russian ones. FAS monitors work from the point of view of antimonopoly laws. And Rostekhnadzor - in terms of commissioning of new capacities.

We flow into this process, become a party to the Russian and international markets as part of the products will be exported.

And, of course, the needs of the region will be a priority at the enterprise, as the mission of the Yaya Oil Refinery is meeting the needs of the market in the Siberian Federal District in high-quality products and environmentally friendly motor fuels. 30-40 thousand tons of the plant products per month are directed to the domestic market. This will undoubtedly impact the economy of the region.

 - From our company the tax base of the region is being increased - confirms Yury. – The Management Company “NEFTECHEMSERVIS” is registered in Novokuznetsk. Our taxes are not deposited in offshore, such a practice is not encouraged here, and it is not justified. JSC “NEFTECHEMSERVIS” is the owner of the plant and, consequently, all the property is registered in the region. Those enterprises who work with us, in the production chain their added value also leave in the region. After all, to one person working at the plant we have nine employees of the infrastructure, who live and work primarily in Anzhero-Sudzhensk.

Namely the people of this city form the main part of personnel of the oil refinery. And the matter of staffing initially was being solved considering the possibility of using the local workforce: over the last years in Anzhero-Sudzhensk several coal enterprises have been closed. The Yaya oil refinery participated in retraining programs pursued by the City Employment Service. Potential employees of the company had undergone practice at the Achinsk oil refinery. However, as it was noted by Yury Stepanov, there is a staff shortage. Besides, sooner or later the period of work of the experts invited to the company from other regions will come to an end. By this time, the plant should be staffed by qualified local personnel. They started to prepare substitution for them a few years ago: The Yaya Oil Refinery cooperates with Kuzbass State Technical University.

- We have relied on the university that suits us - KuzGTU, they used to train personnel for "Azot" in the profile function and for our needs they opened the Faculty, - says Yury. - We found a great understanding on the part of the rector of the University Vladimir Kovalev. Students from Anzhero-Sudzhensk and other cities in the north region study at KuzGTU, undergo practice at our plant, and we strive to ensure that the guys should remain at home, work for us. We prepare also the mid-level workers; and specially for us at the Anzhero-Sudzhensk college they opened a specialty, which is very popular among students. In a year there will be the first graduation release!

This collaboration with educational institutions is mutually beneficial: the company receives qualified personnel, the university and the colleges provide training for professionals and students interested in working in the specialty. The work here, by the way, is well paid - average wage at the plant is about 40 thousand rubles. However, this is not the only form of social partnership with participation of JSC “NEFTECHEMSERVIS” and its branch in the north of the Kuzbass. According to the cooperation agreement with the administration of the Kemerovo region, the company implements social projects, providing targeted assistance to children without parental care, young athletes, and veterans. And it is actively involved in all projects that are initiated by the regional administration - both non-permanent and permanent. There are three main regions in which the company takes the most active part: Novokuznetsk, Anzhero-Sudzhensk and the Yaya district. Recently, the war veterans received gifts from the plant. If there are requests from child care institutions, they are carried out without delay. Children's hockey team in Novokuznetsk can always count on help. And now there is a team also in Anzhero-Sudzhensk.

Recently the wards of “NEFTECHEMSERVIS” - the young hockey players from Novokuznetsk – came back from the competition - the tournament named after Victor Konovalenko, which is held annually in Nizhny Novgorod. They came back with victory. In total, the team has60 children aged 7 to 14. “NEFTECHEMSERVIS” finances all trips, acquires equipment, and pays rent of arenas for training. And this has been so over 10 years. "After all, not everyone can be Malkin! Those guys who are playing now may then come to our plant, and it is important to us, in which environment they grow, what physical training they get ", - says Yury Stepanov.

The business project of the Yaya Oil Refinery in the long term involves investment of over 50 billion rubles, jobs for 800 people and tax revenues up to 13 billion rubles a year. And the plan for the phased development of the company is carried out in accordance with the project. "Initially there were risks of failure, but they related relationship with the natural monopolies, - says the technical director of "NEFTECHEMSERVIS." - Now everything depends on us. "

"Kuznetsky Rabochiy"

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