Russian version

December 6, 2013    «Oil and Capital» magazine. No 11 (205), November 2013

Amil Kalimullin: «15 Years of Innovation»

Petrochemical Complex is the most dynamic sector of the economy of Tatarstan . One of the leading places in it belongs to TAIF-NK - modern refinery, which is actively creating new and developing existing high-tech industries. Rates on innovation have allowed the Company to come close to solving the maximum problem just in fifteen years: to provide 95% refining depth and stop production of dark oil by 2016. General Director of the Company Amil Kalimullin told about the history and prospects of TAIF-NK PSC.

Amil Kalimullin : " 15 Years of Innovation"
"O&C": Amil Kamilevich, TAIF-NK today is the flagship of refinery Tatarstan. Could you tell about how the Company began.

- For many years the governmental energy strategy of Russia has been providing the raw vector development of the country. Tatarstan Republic, leading in terms of oil production, has remained only as a supplier of raw materials for more than half century. The absence of oil refining industry as a major technological element affected the region's whole economy and as a consequence, affected the development of the whole country. 15 years ago TAIF Group created its own branch – TAIF-NK on territory of Nizhnekamsk industrial area, which was based on primary oil production installation CDU/VDU – 7. By that time, the range of products was very small – straight-run gasoline and heating oil with high sulfur content. The course on deepening the oil production and increasing the volumes of oil refining and output of light oil products, widening the range of products, improving the economic performance of production was taken. Active research for technological solutions with high efficiency, which would provide development, was done. While this, advanced foreign and national technologies were used.

"O&C": When did the construction of new production facilities begin?

- In 2003. And we started building two large-scale productions at the same time: Gasoline Plant and aGas Condensate Processing Plant. Both started operation in December 2005, and two months later the first portion of gasoline that was consistent with all project requirements was produced. Raw materials capacity of the Company was increased by 1 million tons in 2006 after the start of Gas Condensate Processing Installation. The Company seriously increased its products range in 2007: raw materials for petrochemical industry, jet fuel, technical kerosene, diesel fuel, EURO-2 and EURO-4 motor gasoline. By 2008, the Company was among the first in Russia to completely pass to the EURO-4 quality standard motor gasoline production. TAIF-NK is a modern Oil refining Complex today, which includes Crude Refining Plant (capacity – 7 million tons per year), Gas Condensate Processing Plant (1 million tons per year) and Gasoline Plant. The whole range of products (gasoline, jet, marine and diesel fuel, road bitumen, liquefied and hydrocarbonic gases and etc) is competitive.

"O&C": What percentage does your Company take in Russian refinery?

- Of course, our volumes on a national scale are small. In the past year it was 3.1%. Nevertheless, in terms of processing TAIF-NK is among the top ten refineries of country. However, the percentage in Tatarstan processing is significant - 53.7%. During the first half of this year, TAIF-NK processed 4.4 million tons of raw materials with processing depth of 75.7%, produced products for 65.5 billion rubles, net profit was 4.7 billion rubles. At the same time I want to note that the products of TAIF-NK are marked on many republican and federal contests "ECOleader", "Best Goods of Tatarstan", "100 best goods of Russia", "Top 100 organizations in Russia. Ecology and Environmental Management." "TAIF-NK" was also awarded the prize of the Russian Federation in the field of quality. Besides the application of innovative technologies, the improvement of the management system of the Company also helps to achieve all of this. Company has implemented an integrated management system and certified it for compliance with four international standards: ISO 9001: 2008 "Quality Management Systems », ISO 14001:2004 "Environmental Management Systems », OHSAS 18001:2007 « Management Systems of Professional Health and Safety" and EN/AS 9100: 2009 "Quality Management Systems - Requirements for organizations of aviation, space and defense industries."

"O&C": TAIF-NK is one of the first companies in Russia completely passed to the "EURO-5" European standard diesel fuel and stopped producing fuel of lower class. How did this process go?

- This process had several stages, according to our strategic plans. In 2008, together with the British Criterion Catalyst, we completed the reconstruction of Middle Distillate Hydrotreating installation, what made it possible to produce EURO-4 diesel fuel in the amount of 1.65 million tons per year. In 2010, together with the Dutch Shell Global Solutions, connected the auxiliary reactor and a number of new units to it, what increased the capacity of the hydrotreater by 30% of the projected. In 2012, the unit started to operate at full capacity (2 million tons of EURO-5 diesel per year). It's really a great fuel. The sulfur content in it is minimal - less than a thousandth of a percent. Due to the low content of aromatic hydrocarbons and sulfur the opacity of exhaust gases decreases, the emission of harmful products of combustion into the atmosphere reduces, and high cetane number helps to optimize the combustion process.

"O&C": Where is the extra-class diesel being supplied?

- It goes to the native market (58 regions of Russia) and for export (14 European countries). EURO-5 diesel fuel has already replaced the EURO-4 product in "North" pipeline, by which it is delivered from Nizhnekamsk to Primorsk harbor. This year it is planned that 67% of produced diesel fuel will be shipped for export, and 33% for native market. By the end of the first half of 2013 the percentage of TAIF-NK in the production of diesel fuel in Russia was 3%, and 96.4% in Tatarstan.

"O&C": What do you plan to implement while realizing the comprehensive development program of the Company in the close future?

- The capacity of gasoil hydrotreater will be increased up to 2.3 million tons a year. This will ensure the processing of all volume of middle distillates into high-quality oil products. Particularly, into the diesel fuel. By 2016 it is planned to provide the level of EURO-5 quality to motor gasoline, produced by the Company. This will happen after the Heavy Residues Conversion Complex starts operating, the construction of which began last year.

"O&C": How is this project going on?

- Its implementation is the main direction of development of TAIF-NK for the next three years. Implementing the complex will provide the deepening of oil processing from the current 75% to 95% and stop the production of heavy oil products (mazut, gas oil, vacuum residue, heating oil). We meet deadlines defined by the technical regulations and the Federal Government for the modernization of native refineries, with the aim of deepening of oil processing and aim of passing to production of a high-quality and ecologically clean oil products of European level.

"O&C": You are building a complex based on a completely new technology VCC. What does it provide?

- The basis of Heavy Residue Conversion Complex consists of multi-stage hydrocracking installation using the latest technology Veba Combi Cracking. It is unique because of combining two processes: liquid-phase hydrogenation of heavy oil residues (vacuum residue) and next gas-phase hydrogenation together with fresh vacuum gas oil. In the process of liquid-phase hydrogenation the licensed supplement of KBR Company is used. Power of VCC installation according to raw materials is 2.7 million tons of vacuum residue per year and 1 million tons of vacuum gas oil per year. The complex will also include the installation for the production of elemental sulfur and special additives that are necessary in manufacturing. The technology is very economical due to the low cost of mazut and availability of natural gas (600 million m3 of gas is needed per year). Main products of this technology are: EURO-5 standard diesel fuel and motor gasoline, jet fuel, high quality nafta, propane and butane gas fraction, sulfur. As a result, the Company’s business profits will increase 1.7-2 times, over 700 new jobs will be created.

"O&C": In what degree does TAIF-NK meet the criteria of social responsibility of business?

- Like the most successful modern enterprises, we pay great attention to social issues and charity. In the past year, the amount of rate on social policy was 376.1 million rubles for charity and sponsorship, 1.3 billion rubles are directed to participation in social projects. The slogan "Strength for Good" brings TAIF Group together and accurately reflects their mission – to contribute directly to improve the economic, social sphere of Tatarstan republic and its population. We strictly follow this course.

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