DEVELOPMENT

Holding positions on the petrochemicals market requires consistent enterprise development

Starting from 1998 OJSC Naftan launched a large-scale stepwise reconstruction and refurbishment of the company facilities which is under way at the moment.

I. 1998-2004 program

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

10 major projects were implemented including Vacuum Gasoil Hydrocracking Complex.

Implementation of these projects enabled to:

  • improve crude distillation units operating efficiency;
  • introduce state-of-the-art industrial processes, such as mild hydrocracking, high pressure hydrocracking, visbreaking, thermal cracking, wax isomerization, Tatoray, Paraxylene-Parex processes;
  • decrease fuel oil output from 38 % to 27 % of crude oil, which increased the yield 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 power supply system and off-site 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

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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.

Principal directions of “Naftan 2005-2010” program:

  • Refining capacity increase;
  • Refinery yield increase;
  • Production quality improvement;
  • Energy and off-site facilities development.

The following projects were implemented:

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 energy supply system and off-site 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 the refinery yield and commercial products yield, to decrease the yield of fuel oil (see the graph).

Fuel oil yield, % of crude oil, in 2005 – 2009

In 2005, fuel oil production accounted for 30% of crude oil. The decrease in the proportion of fuel oil production was due to the reconstruction of the existing production.

III. 2011-2015 program

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

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 and petroleum products tank battery;
  • set up production of Group III base 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

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The Program implies comprehensive development of the enterprise including construction of new production facilities and reconstruction of the existing ones for the purpose of reaching the refinery yield 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 OJSC Naftan Prospective Development Program is aimed at increasing the refinery yield. The Program involves construction of a new Deep Conversion Complex comprising Delayed Coking Unit, and reconstruction of existing deep conversion and hydrogenation facilities for the purpose of increasing their yield and improving diesel fuels quality.

Block 2 of the Prospective Program is aimed at refining capacity increase and product quality improvement. The Program involves reconstruction of AT-8 Unit and renovation of a number of process technologies with increase in crude distillation capacity up to 12 mln. tons per year and increase in production of high-octane motor gasolines meeting Euro-5 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 entire 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 yield, improving product quality, development of energy and off-site facilities of Polymir plant.

To date OJSC Naftan has completed a large-scale investment project:

  • Crude distillation complex construction; includes 2 projects aimed at increasing the refinery throughput up to 12 mln. tons per year.

Implementation of a complex investment project consisting of several units is in progress:

  • Delayed coking complex construction – includes 5 projects aimed at refining capacity increase up to 90%.

CRUDE DISTILLATION COMPLEX

The consolidated project objective is replacement of worn-out and obsolete atmospheric crude distillation facilities at ELOU-AVT-2 Unit; increasing OJSC Naftan refining capacity 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 capacity during overhauls at the company.

In 2017 reconstruction of Crude distillation unit AT-8 for atmospheric distillation of crude oil with design capacity of up to 6 tons of crude per year was completed. Feed treatment configuration for Reforming and Isomerization units and gas separation scheme were implemented. Crude distillation efficiency was improved.

DELAYED COKING COMPLEX

The consolidated project objective is vacuum residues processing to recover additional volumes of light petroleum products and reduce fuel oil yield. This will increase refining depth (up to 90 %) and 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 Delayed coking unit for petroleum vacuum residues processing;
  • Construction of Elemental sulfur recovery unit for utilization of hydrogen sulfide produced in petroleum refining processes;
  • Construction of Hydrogen unit to increase the products quality;
  • Reconstruction of existing Hydrotreatment Units L-24/7 и LCh-24/7 for liquid coking products upgrading and production of gasoline and ultra-low-sulfur diesel;
  • Reconstruction of Desulfurization unit and construction of DCU liquefied petroleum gases demercaptanization unit to increase yield of commercial liquefied petroleum gas;
  • Construction of AU-4 and AU-5 units to support delayed coking complex infrastructure.

Delayed coking unit for petroleum residues

The project objective is refinery yield increase up to 90% with increase in light petroleum products yield up to 65 %, specifically – increase in yield of motor gasolines and diesels and decrease in fuel oil yield.

Implementation of this project will allow OJSC Naftan to organize pet coke production.

Elemental sulfur recovery unit

The project objective is to reduce atmospheric pollutant emissions volume.

Implementation of this project will allow OJSC Naftan to organize elemental sulfur production (both liquid and granulated).

Hydrogen unit No.2

The project objective is increase in yield of hydrogen necessary to improve products quality and to increase the refinery yield.

In accordance with the project the unit can operate with three types of feed – natural gas, liquefied petroleum gas and mixed feed (natural gas + LPG).

Hydrotreatment unit L-24/7

The project objective is increase in diesel hydrotreatment volumes, and the entire diesel produced will comply with the requirements of K-5 standard (Euro-5), as well as energy consumption reduction.

Hydrotreatment unit LCh-24/7

The project objective is processing of additional quantities of motor gasolines from DCU with yield of commercial product (compliance with K-5, Euro-5 norms); processing of additional quantities of diesel with yield of ultra-low-sulfur commercial product (compliance with K-5, Euro-5 standards).

Dry gases and reflux amine treatment unit

The project objective is to increase volumes of hydrocarbon gases treatment and to reduce atmospheric pollutant emissions volume.

DCU liquefied petroleum gases demercaptanization unit

The project objective is to reduce mercaptan sulfur content in liquefied petroleum gas to the required values listed in standard specifications for fuels and to reduce atmospheric pollutant emissions volume.

Nitrogen unit No.4

The project objective is to meet the hydrogen unit demand in nitrogen.

Nitrogen unit No.5

The project objective is to meet the Delayed coking unit and Elemental sulfur recovery (Claus) unit demand in nitrogen.

Cooling water plant No.4

The project objective is to supply recycled water to the 1st system of the following process units of the Company: AT-8, Tatoray, Reforming No.3, Mixed xylenes, Xylenes isomerization, Preliminary hydrotreatment, Hydrotreatment No.2, Hydrotreatment No.3, AVT-6, Visbreaking – Thermal cracking.

Such projects implementation 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 the refinery yield up to 90 %;
  • ensure sulfur content in diesel 10 ppm max.;
  • reduce fuel oil yield by 2.0 mln. tons per year.

V. OJSC Naftan development program through to 2030

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Belneftekhim concern has elaborated new development strategy up to 2030. OJSC Naftan development is a part of this strategy. Options for future projects implementation are currently being worked out.

Investment projects implementation will enable to:

  • ensure increase in hydrocarbon feed processing into petrochemical products;
  • increase the yield of target petrochemical products (ethylene and propylene) per unit of hydrocarbon feed processed by using it more efficiently in new pyrolysis furnaces;
  • increase equipment “flexibility” for the used hydrocarbon feed by operating new high-efficiency pyrolysis furnaces allowing to process both liquid and gaseous feed on the same equipment;
  • increase energy, process and ecological safety of the industrial base;
  • increase the production competitiveness on the global market;
  • reduce costs for physically worn-out equipment repair and replacement;
  • introduce new high-tech equipment that meets modern production, industrial and environmental safety requirements.

Factors of successful operation for OJSC Naftan involve implementation of the Company development program: reconstruction, refurbishment and upgrading of current production facilities, construction of new processing facilities which will ensure the yield of products meeting European quality standards.