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Kuzbass will have own gasoline

   Novokuznetsk JSC "NefteChemServis" – construction investor of the Yaya oil refinery – started implementation of the project of the second stage of the enterprise; as a result it will launch production high-octane gasoline first in the Kemerovo region.

   The Yaya oil refinery started operation in June 2013. The company "NefteChemServis" started construction of the plant in September 2008; the first stone of the new company was laid by the Kuzbass governor Aman Tuleyev. And later on, all construction was under the personal supervision and with the support of the governor of the Kemerovo region. In 2008-2013 "NefteChemServis" invested in the project about 22.5 billion rubles. In autumn 2012 the main works on construction site were completed, and the company moved to the stage of commissioning and obtaining of permits from Rostekhnadzor. In June 2013 it was received and the first stage of the plant with an annual capacity of 3 million tons started production of straight-run naphtha, process fuel and fuel oil.

   Thus even during construction of the first stage at the Yaya oil refinery there was laid a basis for further development – there was prepared all the technical infrastructure with consideration of the second stage, there were built almost all the necessary facilities of administrative and plant facilities – the fire department, administrative complex, etc. For the second stage there have been done some preparatory works, in particular, foundations for new platforms and pipelines as well as for new process units were laid. As it was emphasized by the chairman of the "NefteChemServis” Board of Directors Yury Kushnerov at that time, the very engineering of the Yaya oil refinery was carried out based on continuation of the project, that after the first stage will be the second, and then the third one. It is noteworthy that today the serviced territory of the plant has an area of ​​60 hectares, and the objects of the second stage will be placed in an area of ​​7 hectares.

   It is due to the emergence of the Yaya oil refinery in the Kemerovo region there has been developed an entirely new industry, while at the start of construction of the plant in the region were already running several so-called "mini-refineries". As a result, since 2015 oil refining became the third industrial sector of Kuzbass by volume of output after traditional coal industry and metallurgy.

   Today, the company is well established in the market of petroleum products of Russia and neighboring countries – the Middle and Central Asia and has come to the next stage of its development - construction of the second stage.

   In the last year there were carried out engineering works. In March 2016, the Board of Directors of JSC "NefteChemServis" decided to start construction of the second stage of the Yaya oil refinery. It will be divided into four phases within the approved concept of development of the project until 2025.

   Yury Stepanov, the technical Director of JSC "NefteChemServis", explains that in the first stage, which is planned to be implemented during the 2016-2017 in addition to the existing primary refining unit ELOU-AT there will be implemented a fuel oil vacuum distillation unit with an estimated capacity of 1,600 tons per year. The cost of this phase of the second stage will amount to 4-5 billion rubles. Due to start-up of the vacuum unit, the depth of oil processing at the Yaya oil refinery will grow from current 62% to 75%. At the same time, oil fuel output will be reduced by 30% up to 600 thousand tons per year. But output of oil middle distillates, in particular of vacuum gasoil will be increased. It is important that this product in terms of price is much more profitable than oil fuel.

   The Yaya oil refinery will produce this product by 30% more than the previous one. Yury Stepanov emphasizes that besides, oil fuel is a "de-premium" product, and it has a low price, and its offer in the market is very high.

   In May this year in the administration of the Yaya District there was obtained permission for construction of the first phase of the second stage of the Yaya oil refinery. The project was approved by Glavgosekspertiza, all the technical documentation has been issued. For construction of the unit there was signed a contract with the main contractor - the Omsk company "OMUS 1". The equipment of long period of manufacturing has been ordered, the latest of the equipment will arrive in May 2017, and according to Yury Stepanov by the end of next year the vacuum unit will be started. As of August 1, 2016 in construction of the second stage of the company there have been invested more than 2 billion rubles. The Technical Director of "NefteChemServis" sees no major impediments to implementation of this part of the project. According to him, it was envisaged to install the vacuum unit still at construction of the first stage of the Yaya oil refinery; it was foreseen by the project.

   But in 2010 at the company АК "Transneft" there were published new rules for non-discriminatory access to the pipe, approved by the Government Decision. At that point, construction of the first stage of the Yaya oil refinery was already in full swing, but a permission to connect to the pipeline was still missing. As a result of this change in the rules there was required an investment reimbursement for AK "Transneft". Thus appeared expansion of carrying capacity of the main oil pipeline "Alexandrovskoye - Anzhero-Sudzhensk" - construction of the pumping station "Pervomayskaya", which had to be performed by "NefteChemServis".

   As a result, in 2013-2015 JSC "NefteChemServis" invested in construction of the pumping station about 5 billion rubles, has complied with all the necessary commitments by technical conditions of AK "Transneft" for connection to the pipeline and obtained guaranteed supplies of oil to the Yaya oil refinery. Now during three years the plant operates steadily, it already refines more oil than it was originally planned — in June 2015 the company's capacity has been increased by 10%, an corresponding approval of this increase was received from the Supervisory authorities.

   After implementation in 2016-2017 of the first phase of the second stage at the Yaya oil refinery there will start implementation of the second phase. Now a design for reforming and isomerization is being developed for it, that is, for the unit for production of high octane gasoline. The contractor of the basic engineering is an American company UOP. Start-up of such production (in the original plans of "NefteChemServis" there was a slightly different configuration of the Yaya oil refinery) is due to the situation in the market of Siberia.

   The cost of construction of a gasoline unit is about 26 billion rubles, and of the whole second stage is 32 billion rubles. In order to finance the project the investor - the company "NefteChemServis" - has entered into a loan agreement with Sberbank for 24 billion rubles, still other 8 billion roubles will be the funds of the company itself. Due to the stable financing of the project, as it was emphasized by Yury Stepanov, the equipment for the gasoline unit was already ordered. In particular, from the company UOP they ordered modules of the section of continuous regeneration of catalyst and a co-axial reactor with cost of about 40 million dollars which are of key importance for this unit. According to the contract, the company starting from July 1, 2016 during 100 weeks is obliged to manufacture and supply the ordered equipment. As a result, in 2019 the gasoline unit of the Yaya oil refinery will be started, and "NefteChemServis" will enter the market with a new product - high-octane gasoline in the amount of 700 thousand tons per year. Furthermore, as a result of start-up of the second stage the Yaya oil refinery sharply, in 2 times, will reduce production of fuel oil (from 1.2 million to 0.6 million) in favor of light oil products, and oil refining depth will be increased from 62% to 75%. Last year Russia's consumption of gasoline of various kinds amounted to 35.4 million tonnes, according to Vygon Consulting, quoted by The Kommersant FM on May 13, 2016. Thus, the Yaya oil refinery as a new manufacturer will occupy a market share of about 2%. It is quite noticeable on the one hand, and quite feasible in order to provide for, on the other hand, says Yury Stepanov.

      Construction of the second stage of the Yaya oil refinery is a tough technical, industrial and financial challenge. For manufacturing of equipment, process cycle development and construction, "NefteChemServis" attracts leading Russian and foreign manufacturers, contractors, designers, including from Kuzbass. Thus, the supplier of the vacuum column K-5 and filters is the plant "Kemerovohimmash". Among other suppliers are plants from Volgograd, Saint-Petersburg, and Samara.

   As it was pointed out by Yury Stepanov, the Technical Director of JSC "NefteChemServis", despite the fact that a significant expansion of the already serviced site of the Yaya oil refinery for construction of the second stage is not required, (as mostly everything was prepared in advance) - some works will have to be done. In particular, to reconstruct the system of external power supply of the plant by increasing in 2 times the power substation, a particular reconstruction will be required for the automated control system of technological processes and the integrated security system. Water intake facilities and the railway station of the Yaya oil refinery will be upgraded. But these works are not so important and not so noticeable by costs, compared with the basic ones - installation of new technological equipment. Anyway, the second stage will be a big and important step in the development of the plant.

   In the future, "NefteChemServis" plans to deepen oil processing up to more than 90% by the third and fourth phases of construction of the Yaya oil refinery. This is a bit distant prospect, but as the company construction experience shows and judging by its work at the first stage, complicated financial and technical tasks are something that the company "NefteChemServis" can do. It has already competences in the field of construction, commissioning, production, sales of finished products in the highly competitive market. According to Yury Stepanov, at the third phase of the second stage of the Yaya oil refinery it is supposed to get rid of production of fuel oil through construction of a delayed coking unit. It will it add to the product line of the plant 150 thousand tons of petroleum coke, and most importantly it would enhance production of high octane gasoline and diesel fuel. At the fourth stage it is assumed to proceed with upgrading of diesel fuel due to withdrawal of sulfur and paraffin from it by hydrotreating and deparaffination.

   With the start of the second stage, the Yaya oil refinery will be the largest industrial project not only in the recent history of the Kemerovo region, but over the last 50 years since the legendary industrial construction of the 60-70-ies of the last century, such as construction of the West Siberian metallurgical plant and the deep modernization of the Kemerovo company "Azot".

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