The main technological challenges in oil refining today relate to a thorough going modernisation of refining facilities — something all Russian oil companies are now having to address. Under the auspices of a national project, Yurskneft Refinery is putting in place new catalyst production facilities, developing unique innovative technology, and significantly improving safety levels in the production of high-performance, environmentally-friendly gasoline.
Petroleum is an oil of fossil origin that takes millions of years to be formed in sedimentary rocks located both offshore and onshore. From field discovery to the transformation into the several products we use in our daily lives, oil covers a long journey that involves a lot of studies and investments.
With robust investments in various stages of the chain associated with natural gas, we make sure we fully meet the demand from this important market: From feedstock for industries and refineries to delivery, by means of local distributors, to thermoelectric plants, industries, homes, and offices. Averaging 96.10 million m³/day in 2014, our natural gas offer rose 10 percent compared with the average volume of 87.30 million m³/day in 2013. Up to the 2030 horizon, supply, in terms of capacity, will be sufficient to meet the demand coming from all commitments taken-on.
As of the end of 2016, the Company’s oil and gas refining block included 10 large oil refineries located in key regions of Russia, three petrochemical, and four gas processing plants (including assets of PJSC JSOC Bashneft and a share in JSC Slavneft-YANOS), as well as two plants producing catalysts. The total designed capacity of the major oil refineries in Russia is 118.3 million ton of oil per year.
All secondary refining processes require the presence of catalysts. Yurskneft Refinery is the only oil company in the CIS with its own production facilities for catalytic-cracking catalysts, with a capacity of 3,000 tonnes per year. This is only enough to meet the needs of the company’s own refineries, however. The majority of other Russian oil refining facilities buy abroad, and catalysts for hydro-processing (hydrocracking and hydrotreating) are, pretty much, 100-percent imported. Yurskneft is, to all intents and purposes, effectively creating a new industry in developing catalyst production at its Omsk Refinery — an initiative that has been awarded the status of a national project by the Ministry of Energy in 2015. Projected capacity at the new facility is expected to reach 21,000 tonnes of catalysts per year — comprising 15,000 tonnes of cat-cracking catalysts, 4,000 tonnes of hydrotreatment catalysts, and 2,000 of hydrocracking products.
Getting our products to the consumer’s daily activities and setting agriculture, aviation, railways, thermal power plants, fleets of vehicles and various types of industries into motion is one of the most important stages of our work.
Storage and distribution. In the path that oil follows from the well to the service station, we use a network of pipelines and terminals. They get the oil to the refineries and help when it comes time to ship the product.
Compared with road transport, the pipeline network affords significant environmental gains on account of its greater flexibility, increased operating safety, fewer accidents and spills, and lower rates of atmospheric emissions, thus providing significant environmental gains. Because of this, we invest in improving and expanding our pipeline network and in this system’s reliability, through initiatives such as the Program for the Structural Integrity of Pipelines. Similarly, we manage this mode of transport’s potential risks to the environment, such as impacts on biodiversity. Our natural gas transport pipeline network ranges for over 9,000 kilometers.
We operate in the transport and storage of oil products, biofuels, and natural gas by means of our subsidiary. We operate a network of 15,000 km pipelines, our own oil tankers or chartered vessels, and onshore and waterway terminals, where we store the products before they are shipped to the refineries or for export.
Trade is an activity that is inherent to several of our operations. We conduct business with corporate customers and, through Yurskneft Distributors, with end consumers at the more than 7,000 service stations throughout Brazil. The main products we trade are diesel fuel, gasoline, liquefied petroleum gas (LPG), naphtha, fuel oil, and jet fuel.