PJSC “Ukrtatnafta” – today’s agenda in the light of 50 years of history

2016

Deputy Chairman of the Board for

Production and Capital Construction –

Sergey Koshelyuk

Kremenchug Refinery is the only operating refinery in Ukraine with a full process cycle

Capacity of crude distillation units constitutes 10.5 mln. tons/year. The refineryhas totally 37 process units

Product quality is compliant with the strictest requirements of the NationalStandards harmonized with European Standards

Favorable geographical location – optimal feedstock supply and product salelogistics

Flexibility of the technological process - daily crude processing volume can vary from 4.5 thou. tons to 30 thou. tons

High level of development of information systems for plant management

Staff of high qualification is the basis of the company’s steady development

Ukrtatnafta10%

Ukrgasdobycha2%

Import88%

Diesel Fuel

Share of PJSC “Ukrtatnafta” in the Ukrainian Market

Ukrtatnafta29% Ukrgasdobycha

8%

Import63%

Gasoline

PJSC “Ukrtatnafta” has a comprehensive quality management system implemented and functioning successfully

Quality Guarantee

DSTU ISO 9001:2009“Quality Management

System”

DSTU ISO 14001:2006”Environmental Management System”

DSTU ISO 18001:2010”Occupational Health and

Safety Management System”

Automated Production Control System

REFINERY CONTROLSAP R/3

PRODUCTION CONTROL

I-LDS – laboratory testing system

PI System -information

system

PROCESS CONTROL

SCADA CAPCS Manual data input

• Commissioning of the First Phase of the Refinery(Units AVT-12/5, L-35-11/300, Bitumen Plant 19/6, Gas Plant)

• Commissioning of the Second Phase Facilities(units GK-3/1 №1, LCh-35-11/600, LCh-24-7/68)• Commissioning of the Third Phase – the capacity reaches 18.6 million

tons of crude oil per annum (units GK-3/1 №2, LG-35-8/300B, LK-6u)• Commissioning of the Lube Plant – Fuels and Lubes Production

Pattern (units G-36-37/1, G-37, G-39-40, G-24)

• A complex of environment protection facilities- Gas Sweetening Unit, Sulfur Recovery Unit, Flare Gas Recovery Unit- Waste water biological and thermal treatment units- Sour Water Stripper

• Launch of the First Phase of Modernization“Motor Gasoline and Diesel Fuel Quality Improvement” tomeet Euro-4 and Euro-5 quality requirements

50 Years of Refinery’s Steady Development – Historical Perspective

Finished product slate exceeds 60 types

The only refinery that has a closed-loop water supply system withoutdumping waste water into natural reservoirs

1966 -1969

1970 -1978

1997 -2005

сsince 2006года

Stability CrisisSTABILITY

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Mln. t/year

Refinery Life Cycle

First Phase Commissioning

Second Phase Commissioning

Third Phase Commissioning

Switch to Euro 4

Growth Crisis

Switch to Euro 5

from 01.01.2018

Modernization program

implementation

requirement!!!

When switching to Euro 4

Fuel quality before modernizationStandard

requirementsSolutions

Gasoline:• Sulfur content up to 1000 ppm

< 50• Gasoline sulfur content reduction to 50 ppm(catalyst systems change at L-35-11/600, L-35-11/300 Units).

• VGO sulfur content reduction to 2000 ppm(catalyst system change at Section 300-1 of LK-6y Unit).

• FCC gasoline sulfur content reduction(Prime G process implementation at Section 200 of LK-6u Unit).

• Gasoline benzene content reduction to 1 vol. % (benzene concentrate recovery scheme implementation at Sections 200 and400 of LK-6u Unit).

• Hydrogen purification process (Pressure Swing Adsorption Plant construction).

• Diesel fuel sulfur content reduction to 50 ppm(upgrading and catalyst system change at LCh-24-7/68 Unit).

• Aromatics content up to 53 vol. % < 35

• Benzene content up to 3.0 vol. % < 1,0

Diesel fuel:• Sulfur content up to 2000 ppm

< 50

Development Problems

When switching to Euro 5 (from 01.01.2018)

Fuel quality before modernizationStandard

requirementsSolutions

Gasoline:• Sulfur content up to 50 ppm

< 10

• Isomerization unit construction

• Upgrading VGO Hydrotreatment Section 300-1 of LK-6u Unit(reactor replacement).

• Refurbishing Section 300-2 of LK-6u Unit for diesel fuel hydrotreatment

• Upgrading G-36-37/1 Unit for vacuum tower residdeasphalting

• Refurbishing G-24 Unit for kerosene and deasphaltedoil hydrotreatment

Diesel fuel:• Sulfur content up to 50 ppm

< 10

Development Problems

Main Projects of Modernization and Revamp of Existing Process Units in 2009 - 2016

Modernization of Catalytic Reformers LCh-35-11/600 and L-35-11/300using UOP catalysts

Reformate octane number, МON/RON

Reformate sulfur content, mg/kg

BEFORE MODERNIZATION AFTER MODERNIZATION

BEFORE PROJECT

IMPLEMENTATION

AFTER PROJECT

IMPLEMENTATION

Revamp of Section 300-1 of LK-6u UnitFor FCC feed hydrotreatment using Shell Global Solutions/Criterion catalyst

FCC gasoline sulfur content,

mg/kg

BEFORE REVAMP AFTER REVAMP

FCC feed sulfur content,

mg/kg

BEFORE REVAMP AFTER REVAMP

Stable reformate fractionation with recovery of benzene concentrate

Стоимость

реконструкции $ 1 080

тыс.

Revamp of Pretreatment Unit of Section 200of LK-6u Unit for FCC gasoline selective hydrotreatment using PRIME G technology by AXENS

Stable reformate benzene content,

vol. %

BEFORE

HYDROTREATMENT

AFTER

HYDROTREATMENT

FCC gasoline sulfur content,

mg/kg

BEFORE PROJECT

IMPLEMENTATION

AFTER PROJECT

IMPLEMENTATION

Revamp of LCh-24-7/68 Diesel Fuel Hydrotreatment Unit switching toShell Global Solutions/Criterion catalysts for deep hydrodesulfurization and hydrodewaxing

Стоимость реконструкции $ 4 430тыс.

Hydrotreated diesel fuel

sulfur content,

mg/kg

AFTER PROJECT

IMPLEMENTATIONBEFORE PROJECT

IMPLEMENTATION

AFTER PROJECT

IMPLEMENTATION

BEFORE PROJECT

IMPLEMENTATION

Cold filter plugging point,

°С

Construction of New Pumping Station for Fuel Blending with Additives Injection Package

New-generation equipment made it possible to:

Improve and stabilize the quality of production of finished gasoline and diesel fuel;

Reduce harmful environmental emissions;

Ensure accurate control of flow rates and component injection rates;

Directly measure weights of added components.

Стоимость реконструкции $ 4 430тыс.

0

20

40

60

80

10086

95

Н2 concentration in HBG, vol. %

BEFORE PROJECT

IMPLEMENTATION

AFTER PROJECT

IMPLEMENTATION

Construction of PSA Plant at Gas Sweetening Unitwith the purpose to increase hydrogenconcentration in hydrogen-bearing gas for hydrogenation processes