The construction of the Amur gas processing plant will be carried out by the contractor of Transneft and Novatek. Nipigas “Complicated and Prestigious” will be the general contractor for the construction of an integrated oil refining unit at the Moscow Refinery.

The Chinese corporation Gezhouba Group received a contract from Gazprom for the construction of the Amur Gas Processing Plant worth almost 90 billion rubles. The subcontractor for this contract was Velesstroy, a long-time partner of Transneft and NOVATEK

Photo: Georgy Shpikalov / TASS

"Challenging and prestigious"

RBC managed to find out the details of the contract that Gazprom concluded with the Chinese state corporation China Gezhouba Group Corporation during the visit of Chinese President Xi Jinping to Moscow on July 4. The corporation will build and install cryogenic gas separation units at the Amur Gas Processing Plant (GPP), which will become the largest plant in Russia.

The contract was concluded in euros, its amount was 1.3 billion (86 billion rubles, or 10 billion yuan), the company said in a statement on the Shanghai Stock Exchange. The work will be carried out for almost seven years - from July 2017 to March 2024.

Contract for 790 billion rubles.

The design capacity of the Amur Gas Processing Plant, the first stage of which is due to be built in 2021, will be 42 billion cubic meters. m of gas per year. This will be one of the largest gas processing plants in the world. The gas processing plant will purify raw materials intended for delivery to China via the Power of Siberia gas pipeline. The gas processing plant will also include helium production - up to 60 million cubic meters. m per year.

The investor and customer of the Amur Gas Processing Plant project is a subsidiary of Gazprom, Gazprom Pererabotka Blagoveshchensk. The project is managed by OJSC NIPIgaz, which entered into an EPCM contract for the construction of the Amur Gas Processing Plant for 790 billion rubles. Several foreign companies are also involved in the project, including Germany's Linde, Italy's Tecnimont and China's China Petroleum Engineering & Construction Corporation and Sinopec.

NIPIgaz selected a contractor in several stages: first, it received a feasibility study for the project from largest companies, capable of attracting project financing, then held three rounds of technical and commercial negotiations, selecting three finalists, and the winner was selected after another series of negotiations, a representative of NIPIgaz told RBC. At the last stage, a subsidiary of the Chinese CNPC and Sinopec competed for this contract with Gezhouba, two tender participants and a consultant for the participants told RBC. “The project is complex and prestigious, there was a fierce struggle for it, Sinopec fought to the last,” says one of them. But among others, NIPIgaz put forward a requirement to mobilize equipment and people at the construction site within a month, since Vladimir Putin is expected at the site in two months, he says. Sinopec was unable to fulfill this requirement, but Gezhouba promptly delivered the equipment to the site, explains RBC’s interlocutor.

Gezhouba has been monitoring the construction project of the Amur Gas Processing Plant for more than three years and has been working on documentation for it for a year and a half, a source in the corporation told RBC. Representatives of Gezhouba met with customers 15 times, but until the last moment it was unclear who would get the contract, recalls RBC’s interlocutor. “The negotiations were tough and exhausting; entering the Russian market turned out to be very difficult,” adds a source in the corporation.

Assistant from Croatia

Gezhouba and Velesstroy actually entered the competition as a consortium, although it was not legally formalized, two RBC interlocutors say. Velesstroy helped its Chinese partner urgently issue labor quotas and receive necessary permissions Gazprom’s “daughter” Gaznadzor, notes one of the interlocutors. As a result, Velesstroy may subcontract approximately half the volume of work or a little more, the interlocutors explain. The exact amount of the contract between Gezhouba Group and the subcontractor will be determined within two weeks, says a RBC source close to Gazprom.

Velesstroy was created in 2008, 99% of the shares belong to the Cyprus offshore Waveform Investments Ltd, another 1% belongs to Ekaterina Pavlyuk. The owner of Velesstroy is considered to be Croatian businessman Mihailo Perenčević, he wrote Forbes magazine. Velesstroy built the first and second stage of the pipeline Eastern SiberiaPacific Ocean, the Zapolyarye-Purpe pipeline, the Baltic pipeline system, and is now participating in the construction of the Yamal LNG plant and the Antipinsky Oil Refinery. In 2017, the company entered into contracts worth 60.9 billion rubles, mainly with Transneft structures, according to SPARK-Interfax data. Velesstroy is also known for renting a complex of buildings on the Black Sea coast known as “Putin’s Palace” in 2011.

Not the first attempt

Gezhouba Group is a Chinese state corporation that operates all over the world, according to its website. Founded in 1970, it is engaged in the construction of power plants, including hydro, wind, nuclear and thermal, as well as builds roads, airports and railway infrastructure, bridges, ports, etc. In 2016, the company's revenue was $15 billion, profit - $511 million.

Gezhouba has been looking for projects in Russia for more than five years, says Oleg Demikhov, president of the Association for the Development of International Trade and Economic Relations Sino-Rus. And the company clearly does not intend to stop at the contract for the construction of the Amur Gas Processing Plant. “We plan to focus on development in Russia, especially on oil and gas, energy and infrastructure projects,” a representative of Gezhouba’s Russian office told RBC.

All previous attempts by Gezhouba to enter the Russian market were unsuccessful. At the end of 2015, the Chinese state corporation, together with Oleg Deripaska’s Eurosibenergo, was going to build the Telmamskaya hydroelectric power station with a capacity of 450 MW, but the project was never implemented. Eurosibenergo continues to study possible joint projects with a Chinese partner, a representative of the Russian company told RBC. Gezhouba also wanted to build small hydroelectric power plants in Karelia together with the NordHydro company. “The Chinese company planned to become a co-investor and contractor during construction, but as a result we chose another Chinese partner - Sinomeс,” recalls the top manager of NordHydro. According to him, Gezhouba wanted to obtain the exclusive right to negotiate and only then discuss the details, which put Nordhydro at a disadvantage. “They are unconditional professionals, but it is difficult to negotiate with Chinese state corporations,” says RBC’s interlocutor.

Chinese contractors have already built facilities on the Russian market. For example, in June, the Huadian-Teninskaya CHPP was launched in Yaroslavl, which was built by TGK-2 (controls the project) and the Chinese Huadian (received 49%), says Demikhov. But, in his opinion, Chinese investors lack a systematic approach to working with Russia, this is due to the specifics government structure property in China: results of work are needed quickly, and unjustified expenses are not welcome.

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The Afipsky Oil Refinery (Afipsky Oil Refinery JSC is managed by ForteInvest JSC and is part of the SAFMAR Group of Mikhail Gutseriev) has begun the active phase of construction of the Hydrocracking Complex - the main object of the plant modernization project.


This stage of work is planned to be completed as soon as possible - by the 3rd quarter of 2022. By this period, the main facilities included in the hydrocracking complex will be built: the hydrocracking unit itself and plant facilities (OPF), a hydrogen production unit, and a sulfur production unit. Construction and installation work on the construction of hydrocracking and hydrogen production units will begin first; at the end of 2019, it is planned to begin the project for the construction of a sulfur production unit, and in the first half of next year, the construction of new waste management facilities will begin.

In addition to the construction of a hydrocracking complex, the modernization program in the near future provides for the construction of a delayed coking unit (DCU). The start of construction and installation work at this facility is planned for mid-2020, completion of work is scheduled for 2023.

As a result of the commissioning of the new hydrocracking and ultrasonic treatment complex, the production capabilities for deep oil refining and the production of marketable products will significantly change. Thus, the depth of refining will increase from 76.7% to 98.1%, and the yield of light petroleum products will be 87.7% versus 54.2% for the current period. It is planned that as a result of modernization, the plant will exclude fuel oil and vacuum gas oil from its product line, using them as semi-finished products for further processing and production of high-quality light oil products that are in demand on the market.

Modernization of production will allow the company to increase the number of employees, both at the design and construction stage, and at the stage of commissioning new industrial facilities that require modern, highly professional personnel. The work to update production will involve Atyrau Oil Refinery employees and contracting organizations; as a result, the number of workers at peak construction times will be up to 4 thousand people.

Modernization will allow the plant to become one of the most modern processing enterprises in the country. The enterprise will install modern, reliable equipment that meets, among other things, the most stringent environmental standards.

Thus, modernization of production involves the construction of local treatment facilities. All water produced during the production process will be purified at modern treatment facilities and returned to the recycling water supply system.


Already, within the framework of the development program of Afipsky Oil Refinery LLC, a number of organizational and technical measures are being implemented aimed at improving the environmental situation in the region. The depth of oil refining is increasing and, consequently, the output of high-purity products is increasing. The main objects of the development program are being implemented on the southern site, located at a considerable distance from residential buildings. When designing, we use the best modern technologies, the boundaries of the sanitary protection zone are respected, projects undergo mandatory environmental assessment.

Afipsky Refinery is the largest taxpayer in the Seversky district and one of the largest in Krasnodar region. During three quarters of 2019, the company transferred over 1.1 billion rubles to the federal budget. Payments to the budget Krasnodar region during the reporting period amounted to approximately 520 million rubles. Over 165 million rubles were allocated to the budget of the Seversky district. Of these, 146 million is income tax individuals, that is, deductions from the salaries of plant workers. Funds sent to the local treasury go directly to the development of the municipality and its constituent settlements, including Afipsky.

In accordance with forecasts, at the end of 2019, the total tax deductions of Afipsky Oil Refinery LLC will reach 2.4 billion rubles.

The general designer of the construction is JSC Neftekhimproekt, which implemented the hydrocracking complex project at another oil refinery of the SAFMAR Group - the Orsk Oil Refinery. The general contractor of the project was Promfinstroy JSC, which also had an excellent track record within the framework of the Orsk plant modernization project.

The Afipsky Refinery modernization program was developed a long time ago, the first design work began back in 2014, but construction work on the hydrocracking complex began only this year. Over the past period, equipment with a long manufacturing cycle has been purchased and supplied. Among the equipment suppliers are the largest manufacturers of specialized equipment: Siemens AG, Howden Thomasen Compressors B.V., Flowserve B.V., Sandvik Process Systems, Officine LuigiResta S.p.A., FBM Hudson Italiana S.p.A., Sirtec Nigi S.p.A., LINDE AG, Lummus Technology Heat Transfer B.V.

The Afipsky Refinery is located in the southern part of Russia, in the Krasnodar Territory, 92 km from the Novorossiysk port. In May 2019, the plant became part of the SAFMAR Group, and direct management of the enterprise was transferred to ForteInvest JSC. At the same time, there was a change in management at the enterprise - Sergei Krashchuk, who previously headed the Krasnodar Oil Refinery, became the general director of the Afipsky Refinery.

The capacity of the Afipsky plant is 6 million tons of oil per year. Currently, the plant includes the following technological units: an atmospheric distillation unit with a design capacity of 3 million tons per year; an atmospheric distillation unit with a design capacity of 3 million tons per year; a combined installation for vacuum distillation of fuel oil and visbreaking of tar with a design capacity of 2.9 million tons per year for fuel oil and 1.4 million tons per year for tar.

From the official registers of the Ministry of Energy of the Russian Federation it is known that today several oil refineries are being built in our country. Another huge number of refineries are in the formal design stage according to data Ministry of Energy registry.

Total will be covered about 18 regions of Russia, and in some regions there are even several refineries.
The majority of new refineries will be located in the Kemerovo region:

  • LLC “Itat Oil Refinery”
  • LLC “Oil Refinery “Northern Kuzbass”
  • LLC “Angers Oil and Gas Company”

Rosneft is building a factory called Eastern Petrochemical Complex by 30 million tons capacity.

Refineries under construction and design at various stages of readiness

Main ProductsDepth of processing, (units)Planned addressStatus
LLC "Refinery "Northern Kuzbass"

90
Kemerovo region, Yaya district, village. Treeless
Under construction
LLC "SAMARATRANSNEFT - TERMINAL"
Diesel fuel, motor gasoline, heating oil, sulfur.
87 Samara region, Volzhsky district, Nikolaevka village
Under construction
CJSC NaftatransDiesel fuel, motor gasoline, technical sulfur.92 Krasnodar region, Kavkazsky district, art. CaucasianUnder construction
Dagnotech LLC
automobile gasoline, diesel fuel, kerosene, tar, coke
73,9
Republic of Dagestan, Makhachkala, st. Airport Highway, 1
Under construction
LLC "VPK-Oil"
Diesel fuel, motor gasoline, jet fuel.
96 Novosibirsk region, Kochenevsky district, r.p. Kochenevo
Under construction
Belgorod Oil Refinery LLC
automobile gasoline, diesel fuel
83.8
Belgorod region, Yakovlevsky district, Stroitel, st. 2-ya Zavodskaya, 23a
Reconstructed
LLC "ECOALIANCE M"
Motor gasoline, diesel fuel, heating oil, jet fuel, liquefied gases.
95 Ulyanovsk region, Novospassky district, Svirino village
Designed
VSP Krutogorsky Oil Refinery LLC
Automotive gasoline, diesel fuel, heating oil, paraffins, liquefied gases.
92 Omsk, microdistrict. Steep hill, Industrial site, 1Designed
Tomskneftepererabotka LLC

95 Tomsk region, Tomsk district, Semiluzhki village, Nefteprovod st., 2Designed
LLC "Itat Oil Refinery"
Automotive gasoline, diesel fuel, heating oil.
85
Kemerovo region, Tyazhinsky district, town. Itatsky, st. Gorky, 1
Designed
Transbunker-Vanino LLC, TRB-Vanino LLC
Jet fuel, diesel fuel, marine fuel, commercial sulfur, liquefied gases.
98 Khabarovsk Territory, Vanino village
Designed
CJSC "SRP"
Motor gasoline, diesel fuel, fuel oil, liquefied gases.
85 188302, Leningrad region, Gatchina district, near the village. Malye Kolpany, site No. 1A
Designed
CJSC "ToTEK"
Motor gasoline, diesel fuel, road bitumen, sulfur, liquefied gases.
94
Tver region, Torzhok district, village. Churikovo
Designed
CJSC ORELNEFT Corporation
Motor gasoline, jet fuel, diesel fuel, bitumen, sulfur, coke, commercial oils, liquefied gases.
97 Oryol region, Verkhovsky district, Turov s/s
Designed
LLC "Refinery YuBK"
Diesel fuel, bitumen, sulfur.
98
Kemerovo region., Kemerovo district, village New Balakhonka
Designed
CJSC "ANTEY"
Diesel fuel, jet fuel, sulfur.
98 Republic of Adygea, Takhtamukay district, Yablonovsky village
Designed
CJSC "VNHK"
Motor gasoline, jet fuel, diesel fuel, MTBE, sulfur, styrene, butadiene, polyethylene, polypropylene.
92
Primorsky Territory, Partizansky Municipal District, Elizarova Pad
Designed
LLC "AEK"
Diesel fuel, liquefied gases, bitumen.
96 Amur region, Ivanovo district, Berezovka village
Designed
LLC "ZapSib Refinery"
Diesel fuel, kerosene, liquefied gases, sulfur.
95 Tomsk, Oktyabrsky district, Northern industrial center
Designed
LLC "Yuzhnorussky Oil Refinery"
Diesel fuel, motor gasoline, kerosene, bitumen, coke, sulfur.
98 Volgograd region, Zhirnovsky district, r.p. Krasny Yar
Designed
LLC "Slavyansk ECO"
Diesel fuel, motor gasoline, liquefied gases, heating oil, marine fuel, coke, sulfur.
98 Krasnodar region, Slavyansk-on-Kuban, st. Kolkhoznaya, 2
Designed
CJSC "Park of Industrial Technologies", CJSC "Park INTECH"

92 Yaroslavl region, Gavrilov - Yamsky district, village Velikoselskoe
Designed
Chemical plant - branch of OJSC Krasmash
Diesel fuel, motor gasoline, bitumen, base oils.
94 Krasnoyarsk region, Zheleznogorsk, Podgorny village, st. Zavodskaya, 1
Designed
LLC "Sibirsky Barel"
Diesel fuel, motor gasoline, bitumen, liquefied gases, benzene, toluene, sulfur.
96 Altai Territory, Zonal district, village. Zonalnoye, Zapravochnaya st., 1
Designed
JSC "Yan Refinery named after D.I. Mendeleev"Diesel fuel, motor gasoline, heating oil, marine fuel, sulfur.86 Yaroslavl region, Tutaevsky district, pos. KonstantinovskyDesigned
CJSC Kirishi Oil Refinery 2
Diesel fuel, motor gasoline, kerosene, liquefied gases, sulfur.
98 Leningrad region, Kirishi district, Volkhovskoe highway, 11
Designed
OJSC NK "Tuymaada-neft"
Diesel fuel, motor gasoline, jet fuel, liquefied gases, bitumen.
96 Republic of Sakha (Yakutia), Aldan district, Lebediny village
Designed
OJSC "KNPZ"

97 Rostov region, Kamensky district, Chistoozerny village, Neftezavodskaya st. 1
Designed
PNK Volga-Alliance LLC
Diesel fuel, motor gasoline, liquefied gases, coke.
96 Samara region, Koshkinsky district, Pogruznaya station
Designed
LLC "FIRST PLANT"
Diesel fuel, motor gasoline, kerosene, liquefied gases, bitumen.
98 Kaluga region, Dzerzhinsky district, pos. Polotnyany Plant
Designed
Barabinsky Oil Refinery LLCDiesel fuel, motor gasoline, coke, liquefied gases, bitumen.95 Novosibirsk region, Kuibyshevsky district, Oktyabrsky village councilDesigned
LLC "Vtornefteprodukt"Diesel fuel, motor gasoline, liquefied gases, sulfur.75 Novosibirsk region,
Berdsk, st. Khimzavodskaya, 11
Designed
PNK-Petroleum LLC
Diesel fuel, motor gasoline, liquefied gases, coke.
75 Stavropol Territory, Izobilnensky district, Solnechnodolsk village
Designed
LLC "Yenisei Oil Refinery"
Diesel fuel, motor gasoline, liquefied gases, coke.
87 Krasnoyarsk region, Emelyanovsky district, Shuvaevsky village council, 20th km. Yenisei tract ( Right side), site No. 38, building 1
Designed
Albashneft LLC
Diesel fuel, motor gasoline, kerosene, liquefied gases, coke.
92 Krasnodar region, Kanevskoy district, Novominskaya village
Designed
LLC "VITAND-OIL"
Automotive gasoline, diesel fuel, elemental sulfur
92 Leningrad region, Volosovsky district, pos. Moloskovitsy
Designed
EcoTON LLC
automobile gasoline, diesel fuel, elemental sulfur
75 Volgograd region, Svetloyarsky district, 1.5 km in the southwest direction from the village. Svetly Yar
Designed
LLC "Sibnefteindustriya"
diesel fuel, low-viscosity marine fuel, petroleum bitumen
75 Irkutsk region, Angarsk, First industrial area, block 17, building 11
Designed
FORAS LLC
motor gasoline, diesel fuel, low-viscosity marine fuel, road bitumen, sulfur
89 Samara region, Syzran district, near the village. Novaya Racheyka, 1st Industrial Zone, plots No. 2, 4, 5, 6
Designed
Oil refinery IP Dzotov F.T.""
motor gasoline, diesel fuel, kerosene, coke
73,9 363712, Republic of North Ossetia - Alania, Mozdok, st. Industrial, 18
Designed
CJSC "Caspian - 1"
motor gasoline, diesel fuel, fuel oil
75 Republic of Dagestan, Makhachkala, South-Eastern industrial zone, sections “A” and “B”
Designed
LLC "Yurgaus"
motor gasoline, diesel fuel, kerosene, liquefied gases, petroleum bitumen
94 Kemerovo region, Guryevsky district, 1.5 km east of Guryevsk
Designed

By the way, read this article too: Tax maneuver in the oil industry

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Russian enterprises are actively involved in the modernization of the Moscow Refinery. In particular, the domestic company Russian company AEM-Technologies (part of the mechanical engineering division of Rosatom State Corporation) has already begun manufacturing large-sized equipment for Euro+. [~DETAIL_TEXT] => Moscow Refinery and NIPIGazpererabotka (NIPIGAZ) signed a preliminary agreement, according to which NIPIGAZ will carry out a set of construction and installation works to commission a complex Euro+ oil refining unit at the Moscow Refinery. The preliminary cost of the work is about 21 billion rubles. (excluding VAT). The final cost of the work will be fixed after the general contractor provides complete working documentation.

The construction of a combined Euro+ oil refining unit is one of the key projects of the second stage of the comprehensive modernization of the Moscow Refinery, which is being continued by Gazprom Neft. "Euro+" is intended for primary processing oil, production of high octane fuels environmental class Euro-5, as well as vacuum gas oil. The new installation is scheduled to be put into operation in 2018.

It is planned that the commissioning of Euro+ will allow the Moscow Oil Refinery to increase its oil refining volume to 12 million tons per year. Along with the increase in the level of energy efficiency and industrial safety of the enterprise, the impact of production processes on environment. The construction of the new complex will allow the Moscow Refinery to decommission several units of the previous generation and increase the turnaround time from two to four years, which will provide additional stability to the fuel market of the capital region.

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Our company will have to carry out the construction of reinforced concrete structures at the Omsk Oil Refinery

Our specialists have begun preparatory work on laying foundations for modern installations for oil refining ELOU AVT.

The complex's capacity will be 8.4 million tons per year (for oil) and 1.2 million tons per year (for stable gas condensate) - the new ELOU-AVT will be one of the largest primary oil refining installations in Russia. Investments in the project, provided for by the Gazprom Neft oil refineries modernization program, will amount to about 40 billion rubles. Currently, the Omsk Refinery is implementing the second stage of the modernization program (2016-2020), aimed at increasing the depth of oil refining and the yield of light oil products, as well as consistently increasing the level of industrial and environmental safety of the enterprise.
The new ELOU-AVT complex will include six sections, including a separate unit for processing stable gas condensate (SGC). This will increase the processing volume of SGK and involve additional volumes of condensate in the production of gasoline and diesel fuel of the Euro-5 standard, as well as jet fuel.

It is planned that the ELOU-AVT will be put into operation by the beginning of 2019, after which six primary oil refining units of the previous generation will be removed from the Omsk Refinery process chain. This will reduce the impact of oil refining production on the environment to a minimum. The project used a number of advanced environmental solutions - in particular, continuous monitoring of flue gases from process furnaces and purification of gas fractions from sulfur-containing compounds. The closed equipment drainage system provided for by the project will make it possible to re-direct the extracted petroleum products into processing, reducing the production of fuel oil. ELOU-AVT will also meet modern industrial safety requirements by automating processes, equipping the facility with warning systems, alarm systems, video surveillance and public address communication.
“The commissioning of a new primary oil refining complex will create a stable raw material base for the plant’s projects aimed at increasing the depth of oil refining. Renovation of technological capacities will increase the energy efficiency of primary oil refining and will allow maintaining the volume of oil refining at the level set by the development strategy of Gazprom Neft, noted CEO Gazpromneft-ONPZ Oleg Belyavsky.

REFERENCE:

Gazpromneft Omsk Oil Refinery subsidiary of the company« Gazprom Neft» , is the largest in terms of processing volume and one of the most modern oil refineries in Russia. By installed capacity- 21,4 million tons, (including1 million tons of gas condensate) - Omsk Refinery is one of the twenty largest refineries in the world.

Main technological processes of the Omsk Refinery- oil desalting and dehydration, primary oil refining, catalytic cracking, sulfuric acid alkylation, catalytic reforming, isomerization, Hydrotreating of gasoline and diesel fuel, production of aromatic hydrocarbons.

The company produces about50 types of petroleum products: high octane gasolines, diesel and marine fuel, jet fuel, bitumen, domestic gas, heating oil, technical sulfur and other products, in demand on the market.

Based on official data from the Gazpromneft - Omsk Refinery website

Customer: JSC "Gazpromneft-ONPZ"
General contractor: JSC "OMUS-1"
Contractor: LLC "StroyTransGroup"

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