Gazprom Neft reduced oil refining by 4.2% in 2017 as a result of modernization and planned overhauls at its Russian refineries. The optimal utilization of oil refineries helped to ensure the maximum possible profitability of oil refining in the current market conditions.
“Our main focus in refining right now is to modernize oil refineries in Russia. We want to make our refineries more efficient so that they produce as much light petroleum products and petroleum products with high added value as possible”.Alexander Dyukov CEO of Gazprom Neft PJSC
In 2017, the Company continued the modernization of its oil refineries in an effort to enhance the efficient refining of raw materials, increase the depth of refining, improve production safety, and protect the environment. In particular, the unique Biosphera complex of treatment facilities was put into operation at the Moscow Oil Refinery.
Gazprom Neft intends to invest over RUB 400 billion in the development of the Omsk and Moscow Oil Refineries over the next five years. As a result, the refining at the enterprises will grow to 95% by 2025 (this figure currently stands at 91.7% for the Omsk Oil Refinery and 80.3% for the Moscow Oil Refinery).
The decrease in the production volume of high-octane petrol gasoline and diesel fuel by 6.3% and 4.7% YoY, respectively, is due to a general decrease in the volume of oil refining at the Omsk and Moscow Oil Refineries. The 27.2% YoY increase in bitumen production resulted from growing demand on the domestic market and the expanded geography of exports. Fuel oil production declined compared with 2016 because of a decrease in oil refining as well as increase bitumen production.
Oil refining at Gazprom Neft refineries
Omsk Oil RefineryProjected capacity (Mn t)
- construction was completed on the AOLI-1 automated on-spot loading installation for the sealed loading of petroleum products;
- the bitumen installation was rebuilt to increase production and expand the range of high-tech bitumen materials;
- construction was completed on a hydrogen production unit to provide hydrogen to newly constructed and reconstructed facilities;
- a loading rack was rebuilt for the automated and sealed loading of petroleum products;
- new products were launched: TCU-80 improved marine fuel and G-100 high-octane petrol;
- several of the refinery’s products won awards at the ‘100 Best Products of Russia’ national competition.
- the continued implementation of projects to increase the depth of refining and enhance the eco-friendliness of production, including the construction of the crude vacuum unit (crude oil refining complex), the advanced oil refining complex (AORC), delayed coking unit (DCU), hydrotreatment/dewaxing of diesel fuel, and the Biosphera treatment facilities;
- the reconstruction of a number of process units (catalytic reforming unit, regeneration gas treatment unit of the catalytic cracking unit, and process condensate treatment unit).
Moscow Oil RefineryProjected capacity (Mn t)
- commissioning of the Biosphera treatment plants to improve the efficiency and quality of wastewater treatment;
- reconstruction of the catalytic cracking unit to increase capacity by 20% and enhance the depth of refining and energy efficiency;
- reconstruction of the gas dispensing station to bring it into compliance with the norms and rules for ensuring the receipt and shipment of an expanded range of liquefied petroleum gas (LPG).
- the completion of construction on the Euro+ unit;
- the implementation of projects that aim to increase the efficiency and depth of refining – the construction of a deep oil refining complex and a kerosene cut hydrotreatment unit;
- development of logistics infrastructure, including the construction of a loading rack for light petroleum products for motor vehicles and an automated rack for on-spot loading for railway transport.
NIS (Serbia)Projected capacity (Mn t)
- construction began on a delayed coking unit at the Pancevo Oil Refinery;
- the Pancevo Oil Refinery was the first among the Company’s energy enterprises in Serbia to receive the international IPPC certificate, which confirms the production process conforms to European environmental protection standards. After receiving the certificate, the Pancevo Oil Refinery was named one of the best manufacturing enterprises in Europe.
- continued construction of the delayed coking unit. Thanks to this project, the Pancevo Oil Refinery will become one of the best enterprises in the world in terms of refining depth. As a result, the refinery is expected to reach its maximum capacity (4.6 mn t per year), refining depth is to increase to 99.2%, and the yield of light petroleum products is to increase to 87% in 2019.
Oil refining at joint venture oil refineries
Slavneft-YANOSProjected capacity (Mn t)
- commissioning of a new plant for the production of Group III base oils and oil-based muds;
- the launch of new products, including low-viscosity hydrocarbon oil-based muds, Group III oils, and the bitumen grades EN 100/150, EN 70/100, and EN 50/70;
- the refinery’s products won awards at the ‘100 Best Products of Russia’ national competition.
- completion of construction on the ‘Wet catalysis-2’ hydrogen sulphide utilization unit and racks for the sealed loading of aromatic hydrocarbons;
- replacement of raw materials for the hydrogen production unit with natural gas;
- continued modernization of the vacuum distillation unit of the VT-6 unit;
- continued work on the advanced oil refining complex project.
Mozyr Oil RefineryProjected capacity (Mn t)
- increase in the refinery’s design capacity from 12 mn to 14 mn t per year due to the reconstruction of the LK-6U No. 1 crude refining unit;
- the reconstruction of the diesel fuel production unit (DFPU) led the refinery to launch diesel fuel dewaxing processes as a result of which a product with improved low-temperature properties was generated.
- the continued construction of the hydrocracking complex for heavy oil residues.
In addition to its own oil refineries, Gazprom Neft has access to the refining facilities of Slavneft-YANOS and Mozyr Oil Refinery in the Republic of Belarus.