Gazprom Neft Moscow Refinery: Today and...

Открытое акционерное общество

«ГАЗПРОМНЕФТЬ-МОСКОВСКИЙ НПЗ»

Gazprom Neft Moscow Refinery:

Today and Tomorrow

Moscow, May 2013

Open Joint Stock Company

Gazprom Neft Moscow Refinery

JSC "Gazpromneft-MNPZ" is a plant with fuel-deep oil refining

installed capacity of12.15 million tons a year. The factory occupies

a leading position in the production of high-octane gasoline and

diesel fuels, providing about 40% of the demand for petroleum

products in the Moscow region.

The refinery has developed and implemented policies for the

protection of the environment that meet industry standards ISO

9001 and ISO 14001, BS OHSAS 18001. The main objective of this

program is to ensure the environmental safety of the plant and the

rational use of natural resources.

Since 2010, the Moscow Oil Refinery, which is controlled by the

main shareholder of the company, "Gazprom Neft" has been

implementing a comprehensive long-term environmental program

focused on minimizing environmental risks.

The enterprise continues to implement a major modernization

program for its production facilities in order to improve oil product

quality, increase refining depth and improve both production and

environmental performance. Through 2020, "Gazprom Neft" will

invest over 130 billion rubles in the modernization of the Moscow

Refinery.

«GAZPROMNEFT-MNPZ»

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Increased refining volumes to 9.8 MMt/year

Decommissioned 12 obsolete units Upgraded 25% of capital equipment

Start of production: •high-octane gasoline (84-93 octane) • Polypropylene

20 products, including: • Gasoline • Kerosene, diesel fuel • Bitumen

Products: • Cracked gasoline • Bitumen

1938 1939-1965 1966-1970 1971-1995 1996-2009

April 4 - Startup of first thermal cracking unit Fuel oil shipped from Baku

Processing volume –

0.55 MMt/year

1941-1945 – Front line working conditions

1965 – Startup of Gorky-Ryazan-Moscow oil pipeline Over 20 units and processing facilities put into operation

Processing volume–

5 MMt/year

Startup of Ukhta-Yaroslavl-Moscow oil pipeline Startup of CDU/VDU-6 First production of lead-free 93 octane gasoline New processes: • Catalytic reforming • Diesel fuel hydrotreating


up to 5 MMt/year

Construction of high-capacity facilities: • Catalytic cracking (1983) • Reforming (1986) • Diesel fuel hydrotreating (1988) • Polypropylene • MTBE


9.4 MMt/year

Modernization: • AVT • Catalytic cracking Launch of fuel quality improvement program Conversion to Euro 3 fuels (2003 )


9.8 MMt/year

3

Historical snapshot of Moscow Refinery expansion

Diesel Fuel

2010 2015 2020 Years

Current Class

of Technical Regulations

2013 2016 2012

3 4 5

2009

2

2014 2011 2019 2017

New construction

2018

Catalytic gasoline

Hydrotreater

Isomerization

Production of blending fuels

(TME/МТBE)

Bitumen

Catalytic

cracking

CDU/VDU-6

Refining complex

(AVDU, CCR, diesel

hydrotreating

Diesel fuel

hydrotreater Modernization

2010 2012+

61%

38%

100% 100%

Gasoline

1H2011 2H2011

100% 100%

74%

16% 34%

62%

4%

62%

100%

10%

- Class 4,5

- Class 3

- Below

class 3

Motor Fuel Quality

100% 3%

100% 100% 100%

21%

97%

25%

70%

39% 100% 5%

40%

Projects 2012-2015

2016-2020

Total (mln. RUB

incl.VAT)

Stage 1 (окончание) 13,581 13,581

Stage 2

Reconstruction CDU/VDU-6 2,702 2,702

Reconstruction FCC unit Г-43-107 4,392 4,392

Construction of Refining Complex 25,357 12,818 38,175

Stage 3

Construction of VGO hydrocracking unit 7,635 31,723 39,358

Construction of flexicoking unit with power generation 6,892 27,736 34,628

Fixed asset maintenance projects 23,209 10,338

Total 83,768 82,615 166,384

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Heavy residue

refining plant and

power generation

2010 2012+ 1H2011 2H2011

- Class 4,5

- Class 3

- Below

class 3

The 2010-2020 modernization program will improve production

flow and quality

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May 2011

May 2013

Project Construction of FCC gasoline hydrotreating unit

Project life: Commencement of construction: April 2011

Start-up: 2nd quarter 2013

General design

engineer: JSC "VNIPIneft"

Licensor: AXENS

Prime contractor: JSC "Promfinstroy"

Project goal:

Production of low-sulfur component of

gasoline with sulfur content of up to 10 ppm -

Class 5 in accordance with the requirements

of "Technical Regulations"

Project

description:

The unit is intended to process catalytic

cracking gasoline in order to reduce sulfur

while minimizing the reduction of gasoline

octane characteristics.

The raw material is a set gasoline fraction with

a combination of a catalytic cracking unit Г-43-

107.

Capacity: 1,200 ths. tonnes per year

Investments: 5,680 mln. RUB incl. VAT

Catalytic Gasoline Hydrotreating Unit

6

May 2011

May 2013

Project Construction of Isomerization unit

Project life: Commencement of construction: April 2011

Start-up: 2nd quarter 2013

General design


Licensor: «UOP» LLC


Project goal:

Increase the octane number to 90.3 RON light

naphtha.

The desired product is isomerate, the main

component of Euro-5 fuels.

Total sulfur content in isomerate = 0,1 ppm or

less mass.

Project

description:

The unit is designed to process raw materials

from CDU/VDU-6, 22/4 and reformate from

catalytic reforming and LCH-35/11-1000 L-

35/11-300M

Capacity: 650 ths. tonnes per year


Light Naphtha Isomerization Unit

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Project Reconstruction of diesel hydrotreater LCh-

24-2000

Project life: Commencement of construction: 1Q 2012

Start-up: April 2013

General design


Licensor: ALBEMARLE


Project goal:

Reduce the sulfur content of diesel fuel to

the commodity requirements of Euro-5

(10 ppm). Meet the requirements of

applicable rules and regulations of

industrial safety.

Project description:

The unit is designed for diesel

hydrotreating, meeting Class 5 technical

regulations on sulfur content of polycyclic

aromatics and cetane number.

Capacity: 2,000 ths. tonnes per year


May 2012

May 2013

Diesel Fuel Hydrotreating Unit

Gazprom Neft / Total

(50/50)

Investment project Life of the project

Reconstruction of large bitumen unit

Decommissioning of small asphalt

plant

Began in 4Q 2011 Commissioned in 3Q 2012 – through the end of 2013

Environmental effects

- Reduction of harmful emissions by 90% - Reduction and stabilization of the boundaries of the sanitary protection zone - High-quality construction and road bitumen grades - Use of the sealed bitumen filling technology for shipping by rail and truck

8

January 2012 September 2012

In 2013, Gazprom Neft will enter into a joint venture with

French company "Total" for the production of Polymer-

modified Bitumen.

Polymer-modified bitumen - astringent, produced on the basis of

viscous bitumen with the addition of a polymer and a special

reagent to produce higher and more consistent performance on

heat, cold and wear resistance.

SUPPLIER

SBS-POLYMER «Gazpromneft-MNPZ»

Modernization of Bitumen Production Unit

97%

Investment project Life of the project

Launched new mechanical treatment facilities

Start up: 3Q 2012

Decommissioning of the existing treatment facilities

2Q 2012 – 3Q 2013

Evironmental effects

- Minimize emissions by 97%.

- Reduce oil content in waste water 6 times.

- Reduce pollution and minimize need for buffer zone.

9

September 2010

September 2012 Reducing emissions of harmful substances into the

atmosphere

Emissions

(with introduction mechanical treatment facilities )

Atmospheric emissions

New mechanical treatment facilities will dramatically ease

environmental impact

164

115

0

50000

100000

150000

200000

2012 г. 2014 г.

Emissions from vehicles using fuel from Moscow Refinery *

(in th. of tons / year)

2012 2014

10

Moscow Refinery provides 40% of the fuel

market in the Moscow region in motor fuels.

* - calculated using the methodology of "inventory of emissions of motor

vehicles in the air “ http://base1.gostedu.ru/56/56580/#i17562

-30%

98

66 57 58

0

20000

40000

60000

80000

100000

120000

Дизельное топливо Бензин

Emissions by fuel type (th. tons / year)

2012 2014

- 41,5% -12,2%

Diesel Gasoline

Transition to Euro-5 leads to emissions reduction in Moscow

http://base1.gostedu.ru/56/56580/

http://base1.gostedu.ru/56/56580/

117 117 116

100

83

114

110

2012 2013 2014 2014-2016 2017-2020

EII

Среднее по Европе

Среднее по СНГ и РФ

263 262 259

216

176

248

325

2012 2013 2014 2014-2016 2017-2020

PI


Среднее СНГ и РФ



95,0 95,1 95,2

95,3

97,1

94,3

94,4

2012 2013 2014 2014-2016 2017-2020

ЭГ



11

0

20

40

60

80

100

120

Глубина переработки нефти

Доля светлых нефтепродуктов в

переработке

Отношение вторичных процессов к первичным

2011

2020

%

72% 94% 64% 110% 58% 83%

Changes in indices SOLOMON to 2020

Commission new facilities including a 4-year turnaround and

translation acting on a similar cycle

Meeting best practices for the duration of repairs for new and

existing installations - in terms of reducing average time by 20-

30% compared to current schedules

Increase energy efficiency in existing plants: reduction of fuel,

power and thermal energy

Launch new modern facilities with a 1 quartile Solomon level of

energy efficiency

Decommission old inefficient facilities

Replace old capacity with a more energy efficient unit with

higher EDC

Optimization of maintenance work

Optimization of internal staff

* Данные по средним диапазонам индексов по Европе, РФ и странам СНГ на сегодняшний момент (используются для бенчмаркинга НПЗ группы ГПН)

Central & Southern Europe Avg.



Average refinery in Russia and CIS



Share of Light

Product Output

Ratio of secondary to

primary processes Refining depth

Implementation of the operational performance improvement

plan at Moscow Refinery

Questions and Answers

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