Upgrade of the Afipsky Refinery has entered an active phase

Upgrade of the Afipsky Refinery has entered an active phase 21.11.2019

Upgrade of the Afipsky Refinery has entered an active phase

Afipsky oil refinery («Afipsky Oil Refinery» LLC is managed by JSC «ForteInvest» and is a part of Mikhail Gutseriev’s SAFMAR Group) has entered the active phase of the Hydrocracking Complex construction, the main facility of the refinery upgrade project.
This stage of work is planned to be completed as soon as possible - by the 3rd quarter of 2022. By this period, the main facilities comprising the Hydrocracking Complex will be built, namely: the Hydrocracking Complex in the first place and Utilities, Infrastructure and Offsites (UI&O), Hydrogen Production Unit, Sulfur Recovery Unit. First of all starts the construction and installation works of Hydrocracking and Hydrogen production units, at the end of 2019 we plan to start construction of the Sulfur recovery unit and in the first half of next year, the construction of new UI&O facilities.
In addition to the construction of the Hydrocracking complex, in the near future the upgrade program provides for the Delayed coking unit construction (DCU). The start of DCU’s construction and installation work is scheduled for mid-2020 and the completion of work - in 2023.
As a result of the commissioning of the new Hydrocracking complex and DCU, production capacities for deep oil refining and production of commercial products will substantially change. Thus, the refining depth will increase from 76.7% to 98.1%, and the yield of light petroleum products will be 87.7% against 54.2% for the current period. It is scheduled that following the upgrade results, the refinery will exclude fuel oil and vacuum gas oil from the product line, using them as half stock products for further processing and production of high-quality and light petroleum products that are in demand on the market.
The refinery’s upgrade will allow the company to increase the number of employees, both at the design and construction stage and at the stage of commissioning of new industrial facilities that require modern highly qualified personnel. Afipsky oil refinery employees and contracting organizations will be involved in upgrading works; as a result, the number of workers will amount to 4 thousand employees during the peak construction period of time.
The upgrade will allow the Refinery to become one of the most modern processing enterprises in the country. The refinery will be equipped with the modern reliable equipment that meets, in particular, the most stringent environmental standards.
For instance, the refinery’s upgrade provides for construction of local treatment facilities. All the water obtained during the production process will be treated at modern treatment facilities and returned to the cooling water supply system.
Even now, as part of the upgrade program, a number of organizational and technical measures are being implemented aimed at improving the environmental situation in the region. The depth of oil refining increases and, consequently, the output of high-purity products increases as well. The main facilities of the development plan are implemented at the southern site, located at a considerable distance from the residential areas. During design stage, the best modern technologies are used, the boundaries of the sanitary protection zone are respected and relevant designs undergo a mandatory environmental review.
Afipsky refinery is the largest taxpayer in the Seversky district and one of the largest in the Krasnodar Territory. During the three quarters of 2019, the company transferred over 1.1 billion rubles to the federal budget. Payments to the budget of the Krasnodar Territory for the reporting period amounted to approximately 520 million rubles. More than 165 million rubles were allocated to the budget of Seversky district therefrom 146 million is a tax on personal income, that is, deductions from the salaries of the refinery’s workers. The funds allocated to the local treasury go directly to the development of the municipality and its constituent settlements, including Afipsky.
In accordance with forecasts, Afipsky Refinery’s total tax deductions reached 2.4 billion rubles based on the results of 2019.

Briefing Note
The general construction designer is ZAO «Neftekhimproekt», which implemented the Hydrocracking complex project at another refinery of the SAFMAR Group - Orsk Refinery. The «Promfinstroy» JSC has become the general contractor of the project, which proved itself excellent within the framework of the Orsk Refinery upgrade project.
The Afipsky Refinery upgrade program was developed long ago, the first design work began back in 2014, but it was possible to begin the Hydrocracking complex construction work only this year.
Over the past period, Long Lead Items were purchased and delivered. Among the major manufacturers of profile equipment suppliers are: Siemens AG, Howden Thomasen Compressors B.V., Flowserve B.V, Sandvik Process Systems, Officine LuigiResta S.p.A., FBM Hudson Italiana S.p.A, Sirtec Nigi S.p.A., LINDE AG, Lummus Technology Heat Transfer B.V.
Afipsky Refinery is located in southern part of Russia, in the Krasnodar Territory, 92 km from the Novorossiysk Port. In May 2019, the refinery entered under the scope of SAFMAR Group and direct management of the company was transferred to JSC «ForteInvest». On the same occasion, there was a change of management of the company - Sergey Krashchuk, who earlier headed the Krasnodar refinery, became the general director of the Afipsky refinery.
The capacity of the Afipsky refinery is 6 million tons of oil per year. Currently, the refinery comprises of the following process units: atmospheric distillation unit (22/4 and CDU) with a total design feed rate of 6 million tons per year; Integrated Fuel Oil Vacuum Distillation and Heavy Residue Visbreaking Unit with design feed rate of 2.9 million tons per year for fuel oil and 1.4 million tons per year for heavy residue.

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