Development

Holding positions on the petrochemicals market requires enterprise development. Starting from 1998 OJSC “Naftan” launched a large-scale stepwise modification and upgrade of the company facilities which is under way at the moment.

I. "1998-2004 program"

The year 2004 was marked by successful completion of the Program of modernization and reconstruction of the enterprise "Naftan 1998-2004" covering the whole production cycle of the enterprise.

11 major projects were implemented including Vacuum Gasoil Hydrocracking Complex.

 
VT-1 (Construction of unit designed for atmospheric residue fractionation allowed to significantly improve performance and quality indicators of produced oils).
 
Paraxylene unit (Construction of UOP PAREX Unit for paraxylene recovery allowed to increase high purity paraxylene production and reduce energy costs).
 
CGTP (Co-generation gas-turbine plant construction (CGTP) for heat and power production).
 
Visbreaking and Thermal Cracking (AVT-1 Unit reconstruction and introduction of Visbreaking and Thermal Cracking processes for heavy petroleum residues. Purpose – production of commercial grade fuel oil from heavy petroleum residues, as well as additional gasoline and diesel fuel from vacuum gasoil).
 
Reforming-3 (Reforming-3 Unit reconstruction for production of high-octane gasolines).
 
Tatoray (Reforming-2 unit reconstruction and implementation of UOP (USA) Tatoray process. Purpose – increasing the resources of feedstock for paraxylene production).
 
Mild Hydrocracking (Hydrotreating unit No. 1 reconstruction and introduction of LVGO Mild Hydrocracking process. Purpose – recovery of additional volumes of light petroleum products from LVGO).
 
AVT-6 (Modernization of the leading Unit - AVT-6 and its vacuum block. Purpose – feed supply for conversion processes and energy saving)
 
Hydrocracking (Introduction of vacuum gasoil hydrocracking process - Unicracking (licensor – UOP, USA). Purpose – increasing of oil conversion ratio, production of light petroleum products from vacuum gasoil).
 
Sulfuric acid (Modernization of Sulfuric Acid Production Unit (licensor – Haldor Topsoe, Denmark. Purpose – processing of additional quantities of hydrogen sulfide produced in conversion processes).

Implementation of these projects enabled to:

  • improve operating efficiency of crude distillation units;
  • introduce state-of-the-art industrial processes, such as mild hydrocracking, high pressure hydrocracking, visbreaking, thermal cracking, wax isomerization, Tatoray, Parex processes;
  • decrease fuel oil output from 38 % to 27 % of crude oil, which increased the output of diesel fuel and middle distillates up to 45.4 %;
  • improve quality of products recovered – production of diesel fuel with sulfur content over 50 ppm was terminated, the share of high octane motor gasolines was increased and benzene content in them was reduced to 1%. The quality of lubricating oils and individual aromatic hydrocarbons improved. Production of high quality compounded bitumens was set to work;
  • improve the operation efficiency of utilities supply system and offsite facilities.

Specific increase in medium distillates yield (kerosene, diesel fuel etc.) in 1996 – 2004.

Specific decrease in fuel oil yield in 1996 – 2004.

II. "2005-2010 program"

With the aim of further increasing the efficiency of the enterprise based on newest achievements in processing and taking into account the ever-changing sales markets and due to reconsideration of terms and prices of energy resources supplies to the Republic of Belarus, the Program “Naftan 2005-2010” was reviewed and adopted at the session of the Presidium of the Council of Ministers of the Republic of Belarus.

Primary areas of “Naftan 2005-2010” program

  • Increase of oil refining capacity.
  • Increase of oil refining depth.
  • Product quality improvement.
  • Energy and off-sites.

The following projects were implemented:

 
Sulfuric Acid 2nd phase (In 2007 the 2nd phase of Sulfuric Acid Unit was put on stream. Purpose – hydrogen sulfide recovery).
 
AVT-6 gasoline fractionation (In 2008 gasoline fractionation section within AVT-6 was reconstructed. Purpose – improving the quality of feedstock for paraxylene and other aromatic hydrocarbons production, increasing the yield of Euro-4 gasolines, and energy costs saving).
 
Reconstruction of commodity department tank batteries and other off-site facilities
 
Aromatics section reconstruction (In 2010 the Aromatics Complex was reconstructed. Purpose – optimization of the process flow scheme of units within the complex, increasing commercial paraxylene production. Replacement of worn and outdated equipment with the aim of increasing the turnaround cycle to min. 3 years. Reducing the energy intensity of the units complex).
 
Recycling water supply plant UOV-1(Section reconstruction with the purpose to provide recycling water supply for the system of units AVT-2, Visbreaking – Thermal Cracking, Mild Hydrocracking, Reforming-1, CVC-1, inert gas and carbon dioxide unit, desulfurization unit).

It should be noted that during the abovementioned period, the Prospective Development Program of OJSC “Naftan” was developed to ensure the integrated development of OJSC “Naftan”, taking into account the actual results of previous development programs implementation.

Furthermore, during the implementation of the "2005-2010 Program", a great deal of work was also done to obtain licenses, design other important facilities of the OJSC “Naftan” Prospective Development Program, which allowed to start the construction and installation works and lay the basis for the future.

Implementation of these projects enabled to:

  • increase refining capacity up to 10.8 mln tons per year;
  • ensure sustainable production of aromatic hydrocarbons for OJSC “Mogilevkhimvolokno”, OJSC “Grodno Azot” and OJSC “Lakokraska”;
  • reduce atmospheric pollutant emissions volume;
  • improve efficiency of utilities supply system and offsite facilities;
  • to divest production of diesel fuel with 0.2% sulfur content, only eco-friendly diesel fuel grade EN 590, F and C classes, is produced (50 ppm and 10 ppm sulfur content);
  • to increase oil conversion ratio and commercial products yield, to decrease the yield of fuel oil (see the graph).

Fuel oil output, % of crude oil in 2005 – 2009.

In 2005 fuel oil production made 30% of crude oil. The decrease of its share was due to reconstruction of existing production facilities.

III. "2011-2015 program"

Between 2011 and 2015 OJSC «Naftan» implemented the following investment projects:

 
Power cogeneration plant of Polymir Plant (Power cogeneration plant construction allowed to generate own energy for Polymir Plant).
 
Low Temperature Isomerisation Unit with Deisohexanizer (PENEX) (Isomerisation unit construction allowed to increase yield of high-octane components for commercial motor gasolines).
 
Visbreaking - Thermal Cracking Unit. Vacuum block constructionconstruction (vacuum block construction allowed for recovery of narrow fractions for oils production, as well as for recovery of additional volumes of light petroleum products).
 
Hydrotreating Unit No.1. Reactor section No.2 refurbishment (Refurbishment of one section of Hydrotreating unit No. 1 for production of ultra-low-sulfur diesel).
 
Refurbishment of compression section of Workshop No.105 at Polymir Plant (Refurbishment allowed to increase the capacity of Workshop No.104 of Polymir Plant up to 62 t/h by ethylene)
 
Refurbishment of Preliminary Hydrotreating Unit L-24-300
 
Construction of liquefied ammonia storage at Polymir Plant
 
Tank battery expansion for crude oil and petroleum products storage at commodity department
 
Refurbishment of current offsite facilities at the refinery and Polymir Plant

Implementation of these projects enabled to:

  • switch over to production of 100 % of gasolines as per K-5 standards;
  • increase diesel fuel production as per K-5 (Euro-5) standards up to 1.4 mln tons per year (by 37 %);
  • expand crude oil tank farm and petroleum products tank battery;
  • set up production of Group III oils as per API requirements;
  • increase the capacity of Workshop No.104 of Polymir Plant by ethylene;
  • commission in-house power generating capacities.

IV. OJSC “Naftan” development program implemented at the moment

The Program is aimed at comprehensive development of the enterprise including construction of new production facilities and reconstruction of the existing ones for the purpose of reaching the oil refining depth of 89-90% and ensuring products conformity to current requirements. The Program involves a number of investment projects which are divided into 4 blocks depending on their focus:

Block 1 of the Prospective Development Program of OJSC “Naftan” is aimed at increasing the oil refining depth. The Program involves construction of a new Deep Conversion Complex comprising a Delayed Coking Unit, and reconstruction of existing deep conversion and hydrogenation facilities for the purpose of increasing their output and improving diesel fuels quality.

Block 2 of the Prospective Program is aimed at increasing refining output and improving product quality. The Program involves reconstruction of AT-8 Unit and renovation of a number of process technologies with increase in primary refining capacity up to 12 mln. tons per year and increase in production of high-octane motor gasolines meeting Euro-4 specifications.

Block 3 of the Prospective Program is aimed at development of infrastructure facilities and off-sites, intended for the balance of required auxiliary facilities and systems ensuring trouble-free operation of the whole refinery, and at development of in-house power generation, uninterrupted power supply and energy efficiency.

Block 4 of the Prospective Program is aimed at implementation of measures intended for increasing the output, improving product quality, development of energy and off-sites of Polymir Plant.

Major consolidated investment projects of OJSC “Naftan” which construction is underway are as follows:

  • “Crude Distillation Unit Construction” – includes 2 projects aimed at increasing the refinery throughput up to 12 mln. tons per year.
  • “Delayed Coking Unit Construction” – includes 5 investment projects aimed at oil refining depth improvement up to 90 %.

Crude Distillation Unit Construction

The purpose of the consolidated project is replacement of worn-out and obsolete atmospheric crude distillation facilities at ELOU-AVT-2 Unit; increasing OJSC “Naftan” throughput up to 12 mln. tons per year; implementation of feed treatment configuration for Reforming and Isomerization units; reducing specific energy consumption; implementation of gas separation scheme; improving crude and petroleum products processing efficiency; avoiding sharp decreases in refining throughput during overhauls at the company.

As a result of project implementation in the beginning of 2017 refurbishment of Crude Distillation Unit AT-8 for atmospheric distillation of crude oil with capacity of up to 6 tons of crude per year was completed. At the moment the equipment complex testing is in progress at the unit.

At the moment refurbishment of the vacuum section of Crude Distillation Unit ELOU-AVT-2 for atmospheric residue vacuum distillation with straight-run fuel oil capacity of up to 2 mln tons per year is in progress.

Feed treatment configuration for Reforming and Isomerization units has been implemented. Gas separation scheme has been implemented. Crude oil processing efficiency has been improved. Vacuum distillation process can be run when the atmospheric section is shut down.

Refurbishment of Crude Distillation Unit AT-8 (commissioning and start-up works at the unit are nearing completion as of April 2017)

AVT-2 unit vacuum section construction.

Delayed Coking Unit Construction

The purpose of the consolidated project is processing of vacuum residue to recover additional volumes of light petroleum products and reduce fuel oil output. This will increase the refining depth (up to 90 %) and oil refining efficiency at OJSC “Naftan”, thus adding value to the basket of petroleum products.

As a result of the project implementation the following will be accomplished:

  • construction of a delayed coking unit for processing of petroleum vacuum residues;
  • refurbishment of existing Hydrotreating Units L-24/7 и LCh-24/7;
  • construction of a Hydrogen Plant for upgrading liquid coking products producing ultra low sulfur diesel and gasoline;
  • construction of Elemental Sulfur Recovery Unit for utilization of hydrogen sulfide produced in petroleum refining processes.

Delayed coking unit construction (March 2017).

Hydrogen plant construction (February 2017).

Hydrotreating Unit LCh-24/7 construction (March 2017).

Elemental sulfur “Claus” unit construction (February 2017).

Implementation of these projects will enable to:

  • increase oil refining capacity up to 12 mln tons per year;
  • increase the yield of light petroleum products up to 63.5 %;
  • increase oil refining depth up to 90 %;
  • ensure sulfur content in diesel fuel 10 ppm max;
  • reduce fuel oil output by 2.0 mln tons per year.

Polymir Plant prospective development

Besides the abovementioned investment projects implemented at present, OJSC “Naftan” also works on implementation of other promising projects of Polymir Plant:

  • Construction of a new Ethylene-Propylene Production Unit (EP-200);
  • Construction of MTBE Production Unit.

Construction of a new Ethylene-Propylene Production Unit (EP-200)

The purpose of the project is to increase pyrolysis products output both due to processing efficiency and increasing throughput; renounce propylene import; reduce power costs for production of a ton of target products; replace obsolete equipment; improve the level of industrial and environmental safety.

Implementation of the project will allow for the supply of technological conversion with initial monomers (ethylene and propylene), which will enable the refinery to increase the output of commercial products – low-density polyethylene (full utilization of workshops Nos. 102 and 105 facilities), and to supply acrylonitrile and acrylic fiber production with own-produced propylene to the full extent.

Construction of MTBE Production Unit

The purpose of the project is to launch production of a component for high-octane environmentally friendly gasolines. Gasolines obtained by compounding high-octane hydrocarbon cuts with MTBE addition are less prone to soot deposition, have reduced toxicity, high anti-knock characteristics and stability.

Factors of successful operation for OJSC “Naftan” involve implementation of the Company development program: reconstruction, retrofitting and upgrading of current production facilities, construction of new processing facilities, and output of products meeting European quality standards.