12/07/2018

Press release: Two More Installations Were Commissioned at TANECO

July 12 witnessed putting two hydrotreating units for kerosene and diesel fuel at the TANECO Oil Refining Complex of TATNEFT Company into operation in the mode of comprehensive testing.

The official ceremony of launching the facilities was attended by Pavel Sorokin, Deputy Minister of Energy of the Russian Federation, Rustam Minnikhanov, President of the Republic of Tatarstan, Rinat Sabirov, Assistant to the President of the Republic of Tatarstan, Nail Maganov, General Director of PJSC TATNEFT, Leonid Alekhin, General Director of JSC TANECO, and Julia Zayeva, Director of Licensed Technologies Sale in Russia and CIS: Shell Global Solutions.

Rustam Minnikhanov, President of the Republic of Tatarstan, presented the information on the implementation progress of the largest federal project in the oil refining industry. He recalled that on January 25 in the beginning of 2018, Vladimir Putin, President of the Russian Federation, participated in the ceremony of putting into commercial operation the naphtha hydrofining and isomerization installations.

Head of the Republic pointed out that there were oil refining facilities of a new technological generation established at the Nizhnekamsk industrial site, which allowed achieving maximum processing depth. Rustam Minnikhanov emphasized: “TANECO is the most modern factory in our new Russia. Let it develop and it will be the number one in our country".

Pavel Sorokin, Deputy Minister of Energy of the Russian Federation, pointed out that TATNEFT and TANECO show a good example for the rest of Russia's labor teams: "Tatarstan has good experience in the field of import substitution and has created a unique competence base that will be the basis for further development of the country".

Nail Maganov, General Director of TATNEFT, said that oil processing facilities of the new technological generation with the maximum processing depth have been created at the industrial site of Nizhnekamsk. "TANECO" is the flagship of the Russian oil refining, which enhances economic stability in our country". The Company head thanked the federal, republican authorities and the Ministry of Energy of the Russian Federation for their support in the implementation of the TANECO Project.

 The launch of the kerosene and diesel fuel hydrofining units of allowed increasing the output of the high added value products.The fresh feed rate of the of kerosene and diesel fuel hydrofining units is 500,000 tonnes and 1,600,000 tonnes per year, respectively. The process of hydrotreatment provides for removal of sulfur, nitrogen, oxygen, and unsaturated hydrocarbons from the straight-run kerosene and straight diesel fractions to the required level of quality that allows meeting environmental and operational requirements.

Three reactors for the new production of TANECO (pre-treatment and hydrofining of the diesel fraction and hydrofining of the kerosene fraction), as well as a hot high-pressure vertical tower separator were manufactured at Izhorskiye Zavody company. Vacuum stripper, stripping column and high-pressure amine absorber were manufactured at Volgogradneftemash. Uralkhimmash, Petrozavodskmash and others also participated in the supply of the equipment.

There were more than 80 high-tech work places organized at the new facilities.

Totally, the Company invested the amount over RUB 307 billion in the process of the project implementation. At peak times, there were up to 10,000 persons working simultaneously at the construction site only, not counting those who prepared the construction site and manufactured the equipment. The work was carried out on mastering 25 groups of reactor, compressor, pumping and heat-exchange equipment, which had never previously been produced Russia, and they were introduced into production operations.

Today, the TANECO's refining capacities operate fully loaded. There were 8.5 million tonnes of oil products output at the Complex in 2017 only. The processing depth exceeded 99.2%, while the yield of light oil products accounted for more than 87.5%.

The commissioned kerosene and diesel fuel hydrotreating units will allow increasing the output of the aviation kerosene of brands RT, TS-1, Jet A-1 up to 950 thousand tonnes, while the yield of the Euro-5 diesel fuel will increase up to 3 million tonnes per year. The listed TANECO’s products have been output from vacuum gas oil at the integrated hydrocracking unit of since 2014. The results of 2017 show the production of 221 thousand tonnes of the aviation kerosene and 1,407 thousand tonnes of the Euro-5 diesel fuel. The launch of the new installations will allow starting the aviation fuel production on the basis of new fresh feed components: hydrotreated straight-run kerosene and the Euro-5 diesel fuel production will be based on the hydrotreated straight-run diesel fraction.

Reference Information

JSC TANECO is a high-tech project of TATNEFT Company aimed at the development of the oil-refining segment in order to ensure the long-term sustainable business development.

Total allocations PJSC TATNEFT for the implementation of the project amounted to RUB 307 billion.

 TANECO has become an important project not for TATNEFT only; its implementation has ensured a synergetic effect for many sectors of the national economy, such as machine building, construction industry, metallurgy, engineering design science. Large orders for the manufacture of equipment have been placed at the leading domestic machine-building enterprises.

The year 2010 witnessed launching of the first TANECO’s production stage and the start of obtaining the first refined products: naphtha and the process export-class fuel. The process flow design of the oil refinery complex has been getting more complicated year after year. There are two main stages related to the deepening of the petroleum raw materials processing: 2014 - the launch of the integrated hydrocracking unit (IHU), and 2016 - the launch of a delayed coking unit.

The launch of the hydrocracking unit allowed the Company to move to a fundamentally new level associated with increasing the depth of crude oil refining and yielding of light petroleum products, as well as making another step towards achieving the goal of saturating the domestic market with highly demanded products: diesel fuel, aviation kerosene and base oils. It was for the first time in Russia that the technology of combining deep hydrocracking of vacuum gas oil was linked with the production of high-quality base oils at the integrated hydrocracking unit.

The launch of the delayed coking unit has allowed the TANECO Complex to become the first refinery in the country, where they rejected the production of fuel oil as final product and switched over to the production of light oil products only. Thanks to the stable operation of the facility, the depth of crude oil refining increased to 99.2%, the yield of light oil products went up to 87.5%. The delayed coking unit has been completely domestically manufactured: Russian technologies, design and equipment have been used.

The operation commencement of the naphtha hydrotreating and isomerization units in January 2018 was the first stage in the implementation of a full scale scheme for the production of gasoline grades that comply with the Euro-5 ecological class at the Complex.

Today, there are about 20 kinds of high-quality and demanded products in the TANECO yielded products basket: Euro-5 diesel fuel produced by the integrated hydrocracking unit is the best in Russia in terms of the cetane number; aviation kerosene, base oils, etc.

The plans for 2018 provide that within the framework of the TANECO Complex Development Strategy of the, there will be commissioning of a catalytic reforming unit, which will allow starting the production of premium gasoline grades.

The launch of the newly constructed ELOU-AVT-6 will allow increasing the throughput capacity of the Complex to 14 million tonnes and will allow processing half of the crude oil produced in the region into high-quality products in demand in Russia and abroad.

The TANECO Complex project has allowed creation of more than 3,600 high-performance working places in total since the beginning of the project implementation.

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