Mirzagaliyev on modernization of refineries: By the end of 2018, domestic market demand for petroleum products to be met fully

The large-scale reconstruction of three domestic refineries has been completed. Deputy Minister of Energy Magzum Mirzagaliyev told about the role of modernization and prospects for expanding the production capacity of the plants in an interview with Рrimeminister.kz.

— Tell us, when was the modernization of each of the three oil refineries in Kazakhstan completed? When did the renewed enterprises start working?

— The Pavlodar Oil Chemistry Refinery was modernized in December 2017 simultaneously with the Atyrau Oil Refinery’s completion. Earlier in September 2016, the project on the construction of the Complex for Production of Aromatic Hydrocarbons at the Atyrau Refinery was completed.  Construction of the Deep Oil Refining Complex at the Atyrau Oil Refinery is at the launch stage.

In March 2018 the main installation of the catalytic cracking complex was launched, as a result of which the production of high-octane automobile gasoline was increased more than twofold.

Regarding the reconstruction and modernization of the Shymkent Oil Refinery, the first stage was completed in June 2017, the second — March 15, 2018. To date, mechanical completion has been achieved and commissioning is underway. The planned completion date for commissioning is September 2018.

— Magzum Maratovich, what did the modernization give today, when not so much time have passed? Why was modernization necessary and how has the situation on the fuel market changed (and will change in the future)?

— The Atyrau Refinery modernization project gave the following effect: for the first time in Kazakhstan, the production of basic petrochemical feedstock — benzene and paraxylene — has increased; the extraction of high-octane gasoline has grown from 260,000 tons per year to 600,000 tons per year; 100% production of K4 / K5 clean diesel in accordance with the requirements of the Technical Regulations of the Customs Union has been achieved. In addition, it became possible to use the complex in the fuel and petrochemical modes, depending on the needs of the domestic market.

With the launch of the catalytic cracking unit in March 2018, the production of commodity high-octane gasolines at the refinery increased more than twofold.

After the commissioning of all the deep oil refining units, an increase in the production of motor fuels corresponding to the ecological classes K4, K5 will be provided in accordance with the requirements of the Technical Regulations of the Customs Union: gasoline from — 643,000 tons to 1,441,000 tons per year, aviation fuel from 21,000 tons to 252,000 tons per year; reduction in the production of fuel oil from 1,495,000 to 515,000 thousand tons per year.

The effect obtained from the implementation of the modernization project: production of motor fuels of ecological classes K4, K5; production of aviation fuel and 100% high-octane gasoline; the possibility of processing West Siberian oil in the volume of six million tons per year and up to 4.7 million tons of West Kazakhstan oil per year.

With the completion of the first stage of reconstruction and modernization of the Shymkent Oil Refinery, the production of motor fuel was provided in accordance with the ecological classes K4, K5, and also 100% of high-octane gasolines; an increase in the production of high-octane gasoline from 660,000 tons in 2016 to 881,000 tons in 2017 was achieved.

The completion of the second stage of modernization of this plant  gave an increase: in the design capacity to 6 million tons of oil per year, the depth of oil refining; production of high-octane gasoline — from 881,700 to 2,271,000 tons per year; production of diesel fuel — from 1,209,400 to 1,916,000 tons per year.

— What are the newest installations that have appeared in factories?

— For example, an isomerization unit and a combined sulfur production facility were installed at the Pavlodar refinery. At the Atyrau Refinery — a catalytic reformer with continuous catalyst regeneration and a benzene recovery unit; a combined plant for the production of aromatic hydrocarbons PARAMAX and many more new plants for production and cleaning.

— How many million tons of gasoline will be produced at three refineries in 2018?

— The expected production of gasoline by the end of 2018 will be 4,102,000 tons.

— How many tons of K4 and K5 gasoline are planned to be received in 2018 and 2019 taking into account the work of the new plants?

— In 2018 it is planned to receive K4 and K5 gasoline at the refinery of Kazakhstan in accordance with the requirements of the Technical Regulations of the Customs Union in the amount of 3,572,000 tons, in 2019 — 5,220,000 tons;

— Magzum Maratovich, how the modernization of enterprises affected the work of employees? Did their work become easier?

— A large number of high-tech facilities are being introduced within the framework of the modernization project for the refinery / petrochemical plant of Kazakhstan. Accordingly, process control is automatic (remotely), modern systems are implemented to ensure reliability and safe maintenance of equipment. The maintenance of technological processes is carried out with the help of the distribution control system, such as Yokogawa, ABB, Honeywell, etc.

The control system makes the maintenance personnel’s everyday work easier. All valves are controlled from the central operator room, most equipment is switched on and off directly from the operator room. The technical condition of the equipment is displayed on the monitors in the control system. Prior to modernization, the regulation of technological processes was carried out with older instruments, the so-called pneumatic devices, there was no distance control system, many processes were carried out manually.

— And in general, summing up, what is the economic effect of the modernization? How does the population feel a change in the quality of their products?

— Previously, some of the oil products were imported from the Russian Federation. After completion of modernization, the demand by the domestic market will be fully covered by Kazakh petroleum production. By the end of 2018, Kazakhstan's refineries will fully meet the domestic market demand for petroleum products. Excess volumes (surplus) can be exported.

After the modernization of the refinery, not only the quantity but also the quality of the oil products have been increased. Petroleum products of ecological class K2 produced previously, after modernization meet the requirements of class K4, K5. As is known, the higher the ecological class of gasoline consumed by auto or moto transport, the less emissions of harmful vapors into the atmosphere, which plays an important role for the ecology.

— Thanks for the interview!


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