Belarusian oil refineries are ready to turn out products in full compliance with the new technical regulations of the Customs Union.
Belarusian open joint stock company Mozyr Oil Refinery is planning a sharp reduction in oil refining – by 25 %. This is not due to a fall in the demand, but on the contrary – to encourage it to grow. In order to improve the quality of the produced fuel Belarusian refineries constantly update their technical facilities. One of these projects is scheduled for September: a facility for primary oil processing will be renovated.
Many foreign media have already warned market players about possible disruptions in supplies of Belarusian fuel, but the scheduled refurbishment of the plant will hardly have a significant impact on shipments of gasoline and diesel fuel. “We have reserves for all directions, where Belarusian oil products are supplied today, owing to which our business partners will not feel uncomfortable,” said Alexander Demidov, deputy general director of the Belarusian Oil Company.
According to Belneftekhim, Mozyr Oil Refinery primary refining capacity is about 12 million tons, another 10.8 million tons per year are processed at Belarus’ second oil refining enterprise, Novopolotsk’s Naftan.
In April it was determined that annual amount of oil supplied from the Russian Federation to Belarus will be about 21.5 million tons. “It means that 10.75 million tons will be pumped to either of Mozyr and Novopolotsk plants,” said Anatoly Kupriyanov, general director of Mozyr Oil Refinery. According to Mr. Kupriyanov, about 70 % of the company products are sold in foreign markets. Mozyr-produced petroleum products are supplied to 19 countries.
According to Mozyr Oil Refinery representatives, the last year was not the best one for the enterprise, but in 2012 the performance has improved. Stable utilization of the production facilities has significantly improved economic parameters. Now the plant has a high income and enough funds for social programs and further technical development.
Belarus’ joining to the Single Economic Space (SES) has had a positive impact on the industry. “This year, we processed a record high amount of oil even taking into account the idle period in September and October when new equipment will be installed. In total, we will have processed about 11.122 million tons,” said the general director.
Modernization taking place at the Belarusian refineries enabled them to outstrip technically most oil refineries operating in the CIS. According to Belneftekhim, Belarusian oil refineries owing to timely implementation of investment projects are ready for production of motor fuels and heating oil in full compliance with the Сustoms Union requirements, which will come into force in the SES after December 31, 2012.
About $ 1.4 billion will be allocated by 2015for modernization of Mozyr Oil Refinery. “Soon a tender will be held for the construction of high octane gasoline additives facility. In addition, recently we signed an agreement with a Japanese company for manufacture of devices for processing of heavy oil residues. These complex machines will be delivered to the plant in September 2014. Next year we will hold a tender to determine a contractor for construction of the facility estimated at $ 1.2 billion,” said Anatoly Kupriyanov.
These technological innovations are very timely. First, Euro-3, Euro-4 and Euro-5 gasoline are becoming increasingly popular in the markets of neighboring countries. Second, a possible increase of black oil duties makes processing less profitable.
According to Belneftekhim, after the program of development of oil refineries is implemented, the growth of oil processing at each refinery will be up to 12 million tons per year by 2015 while the depth of refining will increase to 89–92 %. Naftan is also planning large-scale technological novelties: the plant will increase production of high-octane gasoline by more than 700 thousand tons per year, diesel fuel will be manufactured only in accordance with the Euro-5 environmental standard requirements. Naftan will also introduce a new product, petroleum coke.
By the way
Earlier this year, Mozyr Oil Refinery came up with a brand new product – diesel fuel for cold weather. At low temperatures usual diesel thickens to the condition of parafin making it impossible to start a vehicle. Many motorists were faced with this problem in February 2012 when severe frosts started in Belarus. Diesel fuel Arktika (Arctic) was a perfect solution.
“Arktika is produced from conventional diesel fuel with addition of hydrotreated kerosine. Therefore, the volume of its production is limited to about 18 thousand tons per month,” says Anatoly Kupriyanov. “In February, when all output was supplied to shops the production reached 700 tons per day, and this amount only could meet the domestic demand. Later, when the weather became warmer, we offered retailers to sign long-term contracts for the supply of this fuel, but commercial firms were too cautious to do that. There is nothing surprising in that demand determines the price. Since the winter fuel is much more expensive than usual, we can assume that consumers would not buy it at moderately cold temperatures.” According to Mr. Kupriyanov, an analysis conducted by Belneftekhim and Belorusneft experts showed that monthly demand for winter diesel fuel in 2012–2013 will reach 15 thousand tons per month or even less. “Perhaps, we will reach an agreement to supply to the domestic market 10 thousand tons of diesel fuel per month and export the remaining 7–8 thousand tons,” says Anatoly Kupriyanov. At the beginning of the year excessive Arktika was exported to Poland and Ukraine.
