Modernization will bring oil refineries to higher level – D. Tiyessov


Serik Sabekov

Changing geopolitical dynamics of Kazakhstan: what it means for Turkey/IIThe program of modernization of Kazakhstan’s oil refineries is supposed to upgrade the performance of oil processing plants, improve product quality, and provide the domestic market with fuel, according to Managing Director for Oil Processing and Marketing, member of the board of “KazMunaiGaz” JSC Daniyar Tiyessov  who has commented on the progress of implementation of this program in the interview to Kazinform.

What is the nowadays condition of the domestic oil refining? What will the modernization program bring?

According to the analysis, in recent years the world oil refineries have performed 90-95% of their capacity. The main reason of deficiency of oil refining capacities is sharp growth of  oil-demand and consumption of oil products in the Asia-Pacific region, particularly in the countries of Southeast Asia, India and China.

At present three oil processing plants in Atyrau, Pavlodar and Shymkent operate in Kazakhstan. Despite the high index of their overall capacity, the current utilization of Kazakhstan’s capacities is much lower than in the world’s leading refineries.

In order to upgrade the oil processing sector the Government of Kazakhstan has approved a complex plan of development of oil refineries for 2009-2015. The Government’s Resolution was adopted on May 14, 2009. The main purpose of the plan is to ensure energy security of Kazakhstan through full satisfaction of domestic needs in the basic oil products – gasoline, aviation fuel and diesel fuel. The issue of development of competitiveness of the domestic enterprises will be solved through introduction of advanced technologies and increase of economic returns.

What is the technological scheme of oil refineries modernization?

Given the technical condition of the oil processing plants (low-yield oil processing), growing demand for more qualitative oil products and scheduled changes of requirements to the product quality at all three plants there have been initiated projects of development and modernization.  It is planned to reconstruct the vacuum section of ELOU-AVT unit and delayed coking unit at the Atyrau oil refinery, which will increase production of gasoline, aviation fuel, diesel fuel and vacuum gas oil.

The main task of the Shymkent oil refinery is to restore capacities. About USD 80 million is planned to be invested in replacement of internal arrangements of equipment, catalyzators, pumping facilities and etc. Besides, it is planned to complete construction of new units for isomerization, polypropylene; launch production of hydrogen and sulfur, reconstruct diesel hydrotreaters. In whole the cost of reconstruction will make up USD 680 million.

The Pavlodar oil refinery will undergo full modernization of equipment to the amount of USD 158 million.

The total amount of investments in the projects of development and modernization of the three oil processing plants is USD 3.9 billion. The program realization is scheduled for 2009-2015.

Is it possible that we will face gasoline deficiency in the future? Do you plan construction of new oil refineries?

Consumption of the basic oil products in Kazakhstan from 2000 to 2007 demonstrated misbalance between the structure of production and the demand for oil products. For instance, there exists essential growth of consumption of aviation fuel while its production falls behind.

Similar situation is observed in the field of consumption and production of motor gasoline. Besides, the growth of consumption of high-octane gasoline is seen at present. The deficiency of production of aviation fuel and high-octane gasoline shows that today our oil refinery sector is not able to meet changes in the dynamics and structure of oil products consumption.

Besides, insufficient loading level of the production capacities and use of the imported crude oil affects the production of oil products. 

What is the rate of return of the project and how will it benefit Kazakhstan in the future, especially from the ecological point of view?

In the context of growth of oil products consumption in the world and deterioration of the ecological situation in recent years the measures on reduction of harmful environmental impact are taken.  

In order to ensure environmental security of Kazakhstan, to meet the worldwide high quality standards, and ensure competitiveness of the domestic products, the Government plans to toughen the environmental protection requirements with regards to production of motor gasoline. At present we are working on the technical regulations of the requirements to gasoline, fuel oil safety which will have certain requirements to the safety of gasoline, fuel oil produced and circulated within the country.  We need new technical equipment in order to make production meet the modern standards.