Russian version

October 28, 2013    «Industrial and ecological safety, labor protection» magazine. No. 10 (84), October, 2013

TAIF-NK PSC: Modern Technology Processes – ecologic safety guarantee.

TAIF-NK is a leading Company of Tatarstan Republic Oil Refining Industry and it considers activities on ecology safety and environment protection as one of the mandatory conditions of successful development and functioning of the business. The Company’s specific steps in environmental policy during the modernization of production and implementation of innovative processes in the enterprise – in an interview with General Director Amil Kalimullin.

1. Media monitoring clearly shows that state control in the sphere of environmental protection is becoming increasingly tough. So, for example, recently the President of Tatarstan Republic Rustam Minnikhanov repeatedly raised the issue related to environmental safety in Oil and Gas industry, and in Oil Refining. As for the TAIF –NK PSC, a leading company in this sector, it should be noted that the huge work is being done in environmental risk management. In this regard, I would like to address the following question: what potential for the present time does TAIF- NK have in further implementation of environmentally oriented projects (considering that a big amount of initiatives related to environmental sphere are already implemented for the current time)? Will the started work be continued and what kinds of innovative implementations are scheduled?

- The Company has this potential and it is being implemented. All of our strategic initiatives, developed with the support of TAIF Group, aimed to develop and widen the Oil Refinery and use the latest developments that minimize impact on the environment. So, in the reconstruction of existing production technologies that reduce fuel consumption in raw material heating furnaces are being used, which makes it possible to decrease the amount of combustion emissions to the atmosphere and, of course, causes positive effect on the environmental situation in general. Significant amount of work on energy efficiency and environmental safety of production facilities is done in the Company. Reconstructed of heating furnaces on CDU/VDU-7 with transfer of liquid high sulfur fuel to gas, with an increase in efficiency due to the widening of convection part of the building. 15 new recuperative heat exchangers are installed on diesel fuel hydrotreatment facility; the result of what was the reduction of heat use and as a consequence, reduction of emissions. Sulfur production system will be reconstructed in 2014, which will also contribute to improving the environmental situation in the Nizhnekamsk industrial area. Also works on reconstruction and modernization of the existing wastewater treatment system are being done, within which a new sewage treatment plant with a closed cycle is planned to be built. The entire volume of wastewater will be treated and returned to production as circulation systems makeup water.

Specific investment project for the oil refining industry is our Company’sHeavy Residues Conversion Complex (HRCC). This is a large-scale, capital-intensive, and certainly strategically important project, the operation of which will significantly improve the environmental situation in the region. When designing the complex is expected to implement advanced energy saving technologies, and developed activities that reduce the negative impact on the environment from both designed objects and the existing facilities of the Company. It is planed to use high-efficiency raw materials heating furnace with low level of fuel gas consumption. Construction of HRCC will provide refining depth not less than 95% - this is the result, at which all the refining industry is aiming.

2. TAIF-NK PSC took part in the jubilee XX International Exhibition "Oil and Gas. Petrochemistry." - 2013. According to the results of the contest "The best exhibit, project or technical solution", which took place during the event , the company was awarded a diploma of I degree in the category "New types of products." How will this activity sector, associated with quality, new types of products be developed in the future?

- To maintain and improve their competitive advantage TAIF –NK PSC constantly works on improving the product quality. In 2012 the Company passed to the production of EURO-5 diesel fuel and has fulfilled the requirements of the technical regulations "About requirements for automobile and aviation gasoline, diesel and marine fuel, jet fuel and heating oil" ahead of the schedule on terms of release into circulation of motor fuel. The higher ecological grade of fuel, the lower is the content of sulfur, aromatic and unsaturated hydrocarbons. This reduces the opacity of the exhaust gases, reduced emission of harmful combustion gases to the atmosphere, particularly, emission of sulfur and nitrogen oxides, carbon monoxide, unburned hydrocarbons. Can responsibly claim that the sale of fuel not only business but also a social mission. Also in connection with the construction and HRCC the product range will change. Instead of dark petroleum mazut and vacuum gas the liquefied petroleum gas and naphtha for petrochemical diesel EURO 5 will be produced. The quality of raw materials catalytic cracker will significantly improve that will make it possible to produce gasoline of EURO-05 environmental standard.

3. The company continues to lobby for such an important area of work such as the modernization of production. Particularly, the reconstruction hydrotreatment of kerosene and diesel fuel is being done. What are the main results of the project promises to provide? Please tell us in general about the prospects of the company's modernization policy?

- In 2010 it was decided to reconstruct the diesel hydrotreater with increasing its capacity to 2015 tons per year by raw materials and to pass to production of products with a lower sulfur content. Basic reconstruction project was completed by «Shell». Experts have proposed a scheme with deep integration of chemical reaction heat of hydrogenation, which made it possible to refuse the reconstruction of materials heating furnace. Also the second hydrotreating reactor, column of vacuum drying product was added to the scheme, the catalytic system was replaced completely. Carried out renovations allowed to pass to the production of diesel fuel that meets EURO-5 ecological standard. Currently, the work on increasing the productivity of the gas oil hydrotreater to 2.3 million tons per year is going on, which will stop issuing sulfur stove and marine fuels. As for kerosene hydrotreater, the specialists of «Shell» identified ways of its modernization, but in the near future it is not planned. In general, the development of TAIF- NK is related to the construction of Heavy Residue Conversion Complex. This will allow the Company to completely abandon the production of mazut and pass to production of light oil products of higher ecological class.

4. Objectively knowing that TAIF -NK PSC realizes quality, progressive strategy in the environmental field, creates conditions to minimize possible risks, it would be desirable, but in spite of this, I would like to ask this question: what environmental problems exist in the enterprise, what barriers prevent their elimination?

- There are problems, but they are being solved. For example, currently industrial stormwater polluted with oil products, mechanical impurities and acidic salts from the objects of the second industrial zone of Nizhnekamskmeftekhim, refinery facilities of TAIF- NK, as well as from other objects on a contractual basis arrive at the Local sewage treatment systems of department number 09 of Oil Refining Palnt, where they are being treated mechanically and physico-chemically. Further, pre-treated sewage is sent to the Biological wastewater treatment plant of Nizhnekamskneftekhim. Decided to reconstruct the existing local treatment facilities of department number 09 of Oil Refining Plant to increase capacity for the reception of sewage that will be generated at HRCC. Using modern technology with Biomembrane reactors will provide quality of requirements for make-up (demineralised) water for treated sewage, which will make it possible to use it in a circulating water supply systems (in own company with ability to transmit to other organizations). Environmental control will be more effective with the advent of our own sanitary and industrial laboratories. In 2012, the management of TAIF Group decided to create it. The results of the laboratory will strengthen the control of production facilities control mode, timely debug of technological regime, and therefore reduce the negative impact on the environment. For today, the space is already allocated, new equipment is purchased, and construction and iplementation are scheduled for the second half of 2014.

5. In September, the President of Tatarstan Republic Rustam Minnikhanov said: "Tatarstan is interested in cooperation with foreign companies in a number of fields, including systematic work in the field of Oil Refining." What do you think are the prospects for such cooperation? What capacities and professional interests to establish this kind of business ties in this area does TAIF–NK PSC has?

- TAIF -NKPSC is actively working on finding optimal ways of solving various technological and technical problems. Collaborations with foreign companies as well as domestic suppliers of equipment, licensors of refining processes are going on. Application of foreign engineering companies experience allows us to implement the latest technology and technical solutions to Oil Refining. Currently we are working with the company «AXENS» (France) to modernize the unit of gasoline Catalyst Cracking Hydrotreating. The project diesel fuel hydrotreater reconstruction is made by company «Shell» (Netherlands). As a licensor of technology that will be implemented on the Heavy Residue Conversion Complex (HRCC) the engineering company «KBR» (USA) was selected, which offers Veba Combi Cracking (VCC) technology. As a licensor of hydrogen sulfide gas sulfur recovery technology in HRCC the company «KNM» (Malaysia) was selected. Hydrogen for the complex will be made at the facility licensed by a foreign company, which is supposed to be chosen soon. In the manufacturing process the large amounts of additives and reagents are used. TAIF- NK cooperates with companies «BASF», «CHEMEC», «General Electric», «GRACE DAVISON», «Nalco» and other companies on this topic. In the area of supply of equipment TAIF-NK cooperates with the world's largest manufacturers such as «Dresser-Rand», «Sulzer», «Yokogawa Electric», «Fisher-Rosemount», ABB. Thus, TAIF-NK implements the program of development, modernization and environmental security, using the experience and capabilities of world’s leaders in Oil Refining.

6. The present time is symbolic to solve topical problems of environmental safety - Russian President decree declared 2013 as the Year of Environment Protection. How effectively is the environmental policy of TAIF- NK correlated with this state initiative - what projects are realized during the Year of the Environment Protection?

- TAIF-NK PSC, as a member of the interdepartmental working group related to environmental safety in the development of Nizhnekamsk industrial unit, created by the number 904 decree of the Cabinet of Ministers dated June 8, 2010, is actively involved in the development and implementation of events aimed at compliance of requirements of environmental activities in the territory of the Nizhnekamsk industrial unit. Supporting the initiative of the Government of Russia "About holding the Year of Environment Protection in Russia", the Company has developed "plan of action to be held in 2013, the Year of Ecological Culture and the environment." As part of this program, in addition to activities in the field of environmental safety, the Company took an active part in national and urban promotions such as "Clean Forests of Tatarstan" and "Plant a Tree". In December, we plan to participate in the 4th Russian Congress of Environmental Protection, which will be an opportunity to share experience in implementing the environmental ecotechnologies in the enterprise.

TAIF -NK PSC seeks to achieve European standards at every stage of modernization of their production, which is a continuation of Russia's strategic course for the development of the oil refining industry. In today's world no one sees the contradiction between the growth of industry and nature conservation. Production must and will evolve. Pledge of ecological safety of today are not giving up the benefits of industrialization, and the introduction of modern technological processes. Company "TAIF -NK" follows the path chosen in the civilized world - when the correct approach and the development of appropriate investment industry do not damage the environment.

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