General Information
Limited Liability Company “Production Association “Kirishinefteorgsintez” is the only refinery in the North-West of Russia.
The story of the Kirishi Refinery located in the North-West of the country, in the vicinity of Baltic ports, began in March 22, 1966, when consumers enjoyed the first tons of petroleum products manufactured by Kirishi. Since that time, the Refinery has become the leading supplier of refined products in the region.
The Refinery’s capacity totals 17.3 mn tons per year. Capacity utilization rates have remained stable over the past years demonstrating its strong position among Surgutneftegas group of companies (joined in 1993). In 2005, Kirishi refined 18.3 mn tons of crude oil which exceeded its original design capacity.
LLC “KINEF” is the largest wholesale supplier in the North-West of Russia providing a complete range of fuels highly in demand in petrochemical and paint industries, household chemicals and construction segments. Products manufactured by Kirishi include unleaded motor gasoline, diesel fuel, jet fuel, mazut, petroleum bitumen, liquefied hydrocarbon gases, aromatics, solvents, polyalkylbenzene, linear alkylbenzene, petroleum paraffins, sulfuric acid, sulfur and roofing materials. Kirishi’s product lineup comprises almost 80 types of high-quality, competitive eco-friendly products, with approximately 80% of the total output being exported. Today, our Refinery delivers almost 30% of the total low-sulfur fuel produced in Russia. The Refinery’s marketing network embraces a vast territory with key outlets located primarily in the Northwest region of Russia, Western and Eastern Europe.
Since 1996, Kirishi started production of diesel fuel with a maximum of 500 ppm of sulfur, which at that time accounted for 14.7% of the total diesel output. Presently, the Refinery has reduced sulfur to 350 ppm, converting 60% of produced diesel to this standard. Diesel fuel with a sulfur content of 10 ppm is also available depending on market demand.
Planned for completion in 2009, Refinery’s Innovative Development Program involves production of 10 ppm sulfur diesel.
In March, 2003, KINEF adopted an upgraded quality management system to meet the requirements of ISO 9001:2000. The Refinery obtained certificates of conformity issued by both the national certification system (“Test-St.-Petersburg” Co. Ltd.) and the international certification network (IQ Net).
OJSC “Surgutneftegas” strives to build a company with a strong global position that delivers high-quality performance results. LLC “KINEF”, as one of the Company’s business units, follows the same strategic mission – establish a strong presence in European markets as a reliable supplier of petroleum products that satisfy tough environmental and performance requirements.
To accomplish this objective, the Refinery began construction of the deep refining complex that will produce diesel and kerosene. The construction phase of this project financed by OJSC “Surgutneftegas” is now proceeding at its full speed.
From year to year, LLC “KINEF” regularly upgrades its production facilities. The Refinery implements an innovation strategy highlighting key priorities which include phased improvement of process flow diagram to further enhance quality of petroleum products, reduce operating expenditures, and improve industrial and environmental safety. Almost 70% of the existing control system is composed of the state-of-art technologies and equipment. Kirishi is rapidly upgrading its refining assets, giving many of its production and social facilities a new life. Following its upgrade program, the Refinery revamped 8 major processing units which allowed to launch production of Euro-4 compliant gasolines – Regular Euro-92/4 and Premium Euro-95/4, and diesel fuel with a sulfur content of 50 ppm or even 10 ppm on demand.
Highly skilled personnel and top management is essential in today’s competitive environment where leading-edge technologies and automated process control systems prevail. That is why LLC “KINEF” invests heavily in training programs. More than 500 employees are trained in the leading Moscow and Saint-Petersburg universities. Moreover, Kirishi’s employee training program provides focused postgraduate training. As a result, 46% of the Refinery’s employees have college or university degrees, 31 employees, including chief officers, have attained science degrees (General Director – Doctor of Economics; Technical Director – Doctor of Engineering). A third of Kirishi employees complete professional training annually in accordance with skills development and training program schedule. In 2007, personnel development and training expenditures accounted for 2% of the pay-roll fund.
LLC “Production Association “Kirishinefteorgsintez” official website: www.kinef.ru
BACKGROUND
The Kirishi Refinery pioneered petroleum refining in the North-West of Russia. In operation since 1966, Kirishi is a major supplier of refined products in Saint-Petersburg, Leningradskaya, Novgorodskaya and Pskovskaya Oblasts, as well as in other regions of Russia. In 1993, the Kirishi Refinery joined the newly formed vertically-integrated company OJSC “Surgutneftegas”. Since 1996, the Refinery’s official name is LLC “Production Association “Kirishinefteorgsintez”.
PROSPECTS
LLC “KINEF” is a dynamically developing refinery with strategic business plans focused on trends in the global refining industry and consumer demand. On the technical side, KINEF gives priority to process improvement, re-equipment and facilities upgrade, which leads to further quality enhancement.
In 2003, Surgutneftegas embarked on one of its most important strategic projects – construction of the deep refining complex based on residue hydrocracking technology. Once this complex is commissioned, the conversion ratio will increase up to 75%.
Upon completion of the hydrocracking complex project, Kirishi will start construction of the catalytic cracker. At the same time, the Refinery is considering the feasibility of Phase II of the deep refining complex project, involving a wide use of petrochemical processes. In view of the above, the conversion ratio is planned to reach 92-95% by 2011, which means KINEF will possess all the necessary process technologies for high-yield production.
