Military Review

Clean fuel for Europe. Made in Russia

Modernization of industry in Russia does not stand still. To drive crude oil abroad is yesterday's day. In recent years, the country has been upgrading oil refineries. The volumes of primary oil refining are growing and promise to reach a new record level. Pure diesel fuel arrives in Europe. And this means that Russia's share in the fuel market of the European Union will only grow.

On the modernization of the Russian industry and the volume of supplies of pure diesel fuel to Europe, told on the agency's website Reuters V. Soldatkin and M. Nazarov (Vladimir Soldatkin, Maxim Nazarov).

Russia plans to dramatically increase the export of its fuel and get a large share of the European market. This is due to the large-scale modernization of Russian oil refineries, which will cost 55 billion dollars, according to companies and analysts.

Back in the 2011 year, after the crisis in the country associated with a shortage of fuel, Russia "began to modernize its largest refineries." At the same time, the authors recall, the tax system was changed: incentive measures have affected producers of cleaner and higher quality fuels.

This upgrade program is not complete. However, it is already clear today: it led to a significant increase in the production of light petroleum products and an increase in their exports. In turn, this struck at the profitability of European refineries.

Russian analytical center Vygon Consulting believes that in 2018, the volume of primary oil refining in Russia will grow by 8 million tons, reaching a record level of 289 million tons. This figure was noted in 2014 year. The current growth will be associated with both modernization and rising oil prices. Vygon Consulting predicts that Russia's exports of light oil products, including diesel, will increase to 2018 million tons in the 106 year (as domestic consumption decreases). For comparison: in 2017, their exports amounted to about 95 million tons.

According to Transneft, more than 38% of petroleum products from the port of Primorsk are sent to the port of Rotterdam. The Netherlands is followed by Germany (19 percent), UK (15 percent) and France (11 percent). According to this port, in 2018, it is planned to deliver 18,3 million tons of diesel fuel. A noticeable increase in supply is projected - up to 19,8 mln. Tons in 2019 year and 23,9 mln. Tons in 2020 year.

In total, Transneft has planned an increase in exports of ultra low sulfur diesel fuel (ULSD) by 3 million tons (to 26 million tons) this year. ULSD is the cleanest diesel fuel used to fuel cars in Europe.

Andrew Reed, analyst at consulting company ESAI Energy (USA), says that thanks to large hydrotreating investments, much more diesel fuel from Russia has become “a clean product that is suitable for Europe.” “Currently, Russia exports only more than 650000 barrels of ULSD per day, which allows it to supply more than 500000 barrels per day to this [European] market,” the expert noted.

“Exports of cleaner diesel fuel will allow Russia to continue expanding its market share in Europe to the detriment of competing exporters from the United States and the Middle East,” he added.

Approximately half of European cars drive diesel fuel, the collaborators further recall. And European refineries are not able to meet domestic demand today. Therefore, Europe imports about 850000 diesel barrels daily! According to energy consultants, almost 20% of European diesel imports go to the East, with fuel coming from refineries through Suez.

But Russia does not sleep: according to industry sources and information from Reuters, Moscow plans to put into operation 15 new hydrocracking units. This will allow Russia to produce 2022 mln. Tonnes of ULSD before 18,2 (provided that enterprises reach full capacity).

The total amount of diesel fuel (including non-ULSD) can then reach 22 million tons (subject to the commissioning of all 27 facilities for deep refining of fuel oil).

In addition to increasing the production of diesel fuel, Russia intends to produce more gasoline. According to industry sources and Reuters, these same companies will be able to produce up to 10 million tons of naphtha annually (starting from 2022), which can be completely converted into gasoline.

“We expect Russian gasoline production to increase in this [2018] year. Growth began in the second half of 2017 (+ 0,4 percentage points) thanks to the commissioning of new facilities, ”noted J. Lindell (“ Vienna JBC Energy ”). “This year we will see how gas-oriented enterprises will be involved,” he added.

The use of diesel fuel in Europe is not an easy process: it is “closely watched,” the authors further report. Previously, Volkswagen, Europe’s largest automaker, admitted to the tricks associated with US emissions testing. German automakers, including both Daimler and BMW, have already faced a negative reaction to diesel technology, in which they have invested billions. The German government, after a court decision, tried to find ways to avoid bans on the supply of cars that are highly polluted.

Despite these problems and in spite of the fact that sales of new gasoline cars in Europe are growing, the ongoing shift has not yet forced diesel fuel out of the market. This is reported in the report of “JBC Energy”, which would represent a “small threat” to Russia's plans to increase the export of diesel fuel to Europe.

This means, we note that while Russia’s diesel expansion to Europe is not in danger. In addition, it is obvious that Russian pure diesel fuel is already today a strong competitor to fuel from the East.

Another thing is obvious: a large-scale modernization of oil refineries in Russia led to a sharp jump in the supply of products with a relatively high share of value added. Modernization is estimated by experts exclusively positively.

Recently, participants of the IV International Conference “Downstream Russia 2018: construction and modernization of oil refineries, gas processing plants and petrochemical plants”, which took place from February 28 to March 2, visited the Omsk Oil Refinery.

Of particular interest to the experts were the facilities that were launched as part of the first stage of the refinery modernization, including the Izomalk-2 complex, built, by the way, according to the Russian project. This complex represents an innovation in the field of isomerization of light gasoline fractions. This is one of the most powerful installations of this type, not only in Russia and Europe, but also in the world. Its annual productivity is 800 thousand tons of isomerizate.

The products of the Izomalk-2 complex: a high-octane component of commercial gasolines with zero sulfur content, aromatic and unsaturated hydrocarbons.

The commissioning of Izomalka-2 and gasoline and diesel fuel hydrotreatment installations allowed the Omsk Refinery to completely switch to the production of motor fuel fully complying with the Euro-5 standard, to increase the depth of oil refining and the output of high-octane automobile gasoline. ONPZ was one of the first to achieve this in the Russian Federation. At the second stage of modernization (up to 2022), the depth of oil refining at this refinery will increase to the level of the best indicators in the world (97%).

The implementation of plans to modernize refineries and an increase in the supply of pure diesel fuel to Europe indicate that Russia is seeking to move away from sales of crude oil and prefers to supply refined petroleum products.

Observed and commented on Oleg Chuvakin
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  1. Mar.Tirah
    Mar.Tirah 16 March 2018 06: 33
    Will the prices for this diesel fuel in the domestic market also rise? And so is higher than that of AI-95. Why are you writing this? What would make the people even more angry? What difference does it make to me how much oil will earn from the sale of fuels and lubricants tycoons. Saturation of their market and accessibility are much more important to me. Although it would be like in the Emirates. Because all the profits will lie in the pockets of businessmen, or foreign banks
    1. Uncle lee
      Uncle lee 16 March 2018 06: 41
      We have a diesel for fifty dollars! At level 95. And the quality! Euro 1000! And the price! I am happy for the Europeans!
    2. Vard
      Vard 16 March 2018 06: 42
      Good diesel fuel differs from not very good sulfur content ... And for the domestic market the percentage is slightly higher ... So much ... That the fuel valves do not go for a long time ... This is another problem ....
      1. Himdym
        Himdym 16 March 2018 09: 23
        Good DT is distinguished not only by sulfur, but also by polyaromatics, and also by the amount of paraffins, to obtain normal PTF with a high content of paraffins, it is necessary to add smelly depressant additives.
        1. svd-xnumx
          svd-xnumx 16 March 2018 20: 59
          In the "old" diesel fuel, sulfur partially fulfilled the functions of piston lubrication, now one can run into the pursuit of cheap fuel cleared of sulfur, but without paraffin additives and from such a diesel engine there will be a kayuk.
    3. Mussasi
      Mussasi 16 March 2018 06: 55
      That's right, people are interested in the price of fuel in the domestic market, and only new workers will appear for some.
      1. Mar.Tirah
        Mar.Tirah 16 March 2018 07: 09
        That's it, for some. But the owner determines the order in these new jobs. I got into one such candle factory. They wanted to spit on Russian legislation there. They squeezed everything out of the hard workers. And irregular working days, and bribes, and theft, and ferocity departmental security in the form of all sorts of invented fines. All this thrives there in a riotous color.
        1. Alexey Sommer
          Alexey Sommer 16 March 2018 08: 37
          Just like in the factories of Demidov with serfs?)
          Tired of you all-crawler !!! ..
          Worse than a bitter radish!)
          Ride bicycles.
          1. Akuzenka
            Akuzenka 20 March 2018 16: 19
            What else do you live in socialism? I will disappoint you, we are all in capitalism, where the norm is described by Mar. Thira.
      2. neofit962
        neofit962 18 March 2018 11: 59
        The law of conservation in nature: "If it arrives somewhere, it will certainly disappear somewhere!"
    4. Kent0001
      Kent0001 16 March 2018 18: 14
      The high price in Russia for fuel is due only to taxes. So we ourselves at the cost of gasoline pay for many budget expenditures, and of course the lost income of oil workers.
      1. astepanov
        astepanov 16 March 2018 18: 45
        But we have a folk tradition: domestic prices for petroleum products are rising regardless of their market prices. Stability, her mother ...
      2. APASUS
        APASUS 16 March 2018 22: 07
        Quote: Kent0001
        The high price in Russia for fuel is due only to taxes.

        When prices rise for crude oil, the net product rises in price. But when oil prices go down, prices for distillation rise again.
        How is it that the tax rate is not increasing?
        1. Filxnumx
          Filxnumx 17 March 2018 19: 53
          But when oil prices go down
          and after all, the profit of oil tycoons is falling! By increasing the price of gasoline in the domestic market, they keep their profits at a level that is pleasant to themselves, at the expense of us, ordinary car owners.
          1. valerij zviozdkin
            valerij zviozdkin 21 September 2020 14: 17
            See the diesel fuel, please. There are no tanks on the bezin.
    5. demo
      demo 17 March 2018 13: 21
      You are without a doubt right.
      Each ton of oil or gasoline sold abroad, paradoxically increases the cost of production in the domestic market.
      Refundable VAT.
      Take it away and oil companies can dictate domestic prices.
      Which will be two to three times lower than European.
      So the joy is not great.
      And even though the presence of “clean” fuel seems to be the case, environmental problems in the European Union are not canceled, but only multiplied.
    6. The comment was deleted.
    7. The comment was deleted.
    8. D-Master
      D-Master 19 March 2018 12: 23
      Dear colleague! The high price of gasoline and diesel fuel in Russia is due to high excise taxes. This is the easiest way to collect taxes. And while your neighbor cashes his profits and evades taxes, taxes will be spread throughout the entire population. This is a shame but it is a fact. But do not forget that all major taxpayers pay taxes and pay carefully. And they pay with refining income. And to process oil is thousands of jobs. Thousands of fed families. Therefore, you do not need to go gunny dissatisfied - this is easiest. Better think it over.
      1. Mar.Tirah
        Mar.Tirah 20 March 2018 14: 57
        Your misfortune is that I live in one world of GAZPROM in Siberia knowing its background, and you seem to be in a different one, drawn. Until the government changes politics, and it doesn’t take the skins off the nouveau riche who have seized the riches of Russia, some will buy plants, they grab profit and resell. In my memory, three owners of the oil refining industry have changed in our district. And salaries either froze or began to have a negative balance, motivating the crisis. And people with experience have no choice where to go. As the new owner says, I'm not happy with the salary I don’t hold it, there are a lot of these left from the Soviet era. Excise taxes say high ????? Well, well !!!!!!!!
        1. Akuzenka
          Akuzenka 20 March 2018 16: 24
          Ah, colleague! Something you think and socialist revolution want !!!! Do not worry will not happen in the near future. The guarantor will not allow it. It’s just that many people don’t understand that Gazprom’s leadership has “dreams come true”. But they also come true at their expense, but they do not realize this or are unable to realize it. While they feel this way in their own skin, they will call you names.
          1. Mar.Tirah
            Mar.Tirah 20 March 2018 17: 06
            Not everything is so bad. The Kremlin is still fighting the oligarchs, albeit not at the pace that we would like to. Slowly knocking out the presumptuous ones, taking them out of the gray marauding zone, laws on the liquidation of non-core assets. But at the pace as now for Putin's term of office definitely not enough. Modernization is hindered by all possible means. It’s easier to drive raw abroad than to process hydrocarbons at home. There is too much by-product of production. But we don’t want it, and we don’t know how to process it. I mean fuel oil, paraffin, etc. d.
  2. FID
    FID 16 March 2018 07: 51
    I'm sorry, Oleg, do you even understand the word from what was written? And if you understand, then what are you doing at VO? You will notice that site visitors begin to determine prices for .... Do you need this?
    1. Mar.Tirah
      Mar.Tirah 20 March 2018 15: 10
      If readers approve of my comment, it means that people think the same way. I am naturally glad to introduce the latest technologies in the production of petroleum products, but excuse me, Sergey, the benefits of this introduction for the common people of Russia and the hinterland are ZERO !!!!!!!!!!!! !!!! Sowing on the nose, there is a thaw, and our task is to stock up on fuel, for which three skins are being torn. Moreover, production is increasing and increasing, oil pipelines to and from China are growing and not telling me what I am doing on the site. It's not cultural.
  3. konstantin68
    konstantin68 16 March 2018 08: 30
    Quote: Vard
    Good diesel fuel differs from not very good sulfur content ... And for the domestic market the percentage is slightly higher ... So much ... That the fuel valves do not go for a long time ... This is another problem ....

    Do not save on diesel and everything will be fine. Even in passenger cars, the resource will be for 300-400 tons. Km. the same requirement for filters, especially fuel and air.
  4. Loess
    Loess 16 March 2018 08: 39
    Russia's export of light petroleum products, including diesel fuel, in 2018 will increase to 106 million tons (as domestic consumption decreases).
    I wonder why the domestic consumption will decrease?
    1. andrej-shironov
      andrej-shironov 16 March 2018 08: 44
      smile Apparently due to the increase in prices.
      1. Galleon
        Galleon 16 March 2018 10: 15
        Well, who will refuse first: citizens on diesel SUVs or villagers on tractors? Who will have more money? I would not like the consequences of such failures.
  5. andrej-shironov
    andrej-shironov 16 March 2018 08: 44
    Given that Europe is massively beginning to abandon diesel, diesel fuel supplies from Russia will be the most wink
    1. Himdym
      Himdym 16 March 2018 09: 31
      so far only Germany, and with regard to road transport in cities. It is unlikely that European long-range vehicles will be able to abandon diesel engines
      1. andrej-shironov
        andrej-shironov 16 March 2018 15: 04
        smile While I ask you to take my word for it, Europe will completely abandon the diesel engine, and then gasoline. The trend for ecology and electro can be traced there very clearly and incrementally.
        1. Kent0001
          Kent0001 16 March 2018 18: 15
          On bicycles will grow their super yields.
          1. Andrey Grinberg
            Andrey Grinberg 17 March 2018 17: 39
            The share of sales of hybrids, electro + gasoline, is constantly increasing. All auto manufacturers are introducing hybrids in new models. 5-7 years will pass, their share will be significant.
            1. Awaz
              Awaz 19 March 2018 17: 59
              Where do they get electricity for electric cars? From the air? from space? Very little is obtained from the air and from the sun to gain, and it is expensive and expensive. The bulk of electricity is made from gas and oil, and even coal. In Europe, still half of households receive heat and electricity from burning coal, and again, Russian. So, go first at least to gas and then bazaars about the rest.
              As far as I remember, already at the age of 14, half of the almost solariums in the EU were Russian and some decent percentage of gasoline. And with all the hysteria and sanctions, the volume of purchases of gasoline and solariums from the Russian Federation are growing, just as the volumes of purchases of gas and even oil and even coal are growing ..
  6. Himdym
    Himdym 16 March 2018 09: 30
    There are a lot of side factors in the increase in the depth of refining at the refinery and the re-equipment of the fuel block. First, where to get extra sulfur? Secondly, what to do with coke, which is so much more than metallurgists are ready to pick up? Thirdly, for hydro-processes, natural gas is needed, from which hydrogen is released by steam reforming, is Gazprom ready to increase production?
    Now about the economy. Technical re-equipment of oil refineries is a big investment, it is a slight increase in operating costs for new generation catalysts, for example, so that a ton of Euro-5 is logically more expensive than Euro-4.
    1. 4ybys
      4ybys 16 March 2018 13: 56
      And so in order:
      1. For sulfur, there is MEROX with the production of elemental sulfur, the market of which is quite extensive.
      2. Your second and third and third questions are addressed comprehensively. There are a number of processes for the processing of petroleum coke based on steam-gasification as a result of which a hydrogen-containing gas is formed. From which hydrogen is emitted after MEA purification by ordinary short-cycle adsorption. Similar processes are already working at refineries in Russia. The degree of conversion of petroleum coke in this process is at least 95%.
      As for the non-sickly investments, here you are absolutely right, because it is not in vain that Pindongstan and the rest of the homosexes impose various sanctions on the possibility of attracting credit funds for reconstruction, under one or another pretext.
      1. Mih1974
        Mih1974 17 March 2018 06: 00
        And our government’s sinking government still keeps the Central Bank rate at a guaranteed non-investment level. am negative Instead of lowering the rate lower than that of the enemies and lowering taxes (as they did in the USA), they come up with new requisitions and lower the rate per hour by teaspoon. At such a pace - our industry will miss the reconstruction phase, which is being intensively carried out by the enemies.
  7. Stirbjorn
    Stirbjorn 16 March 2018 09: 41
    One can only be glad for the Europeans, how they are taken care of. How can one not recall the recent one from Maxim Shevchenko, the proxy of Grudinin in the presidential election
    I just don’t understand why attack us. I travel a lot around the country now. I see that all large-scale production belongs to foreigners or people who have foreign passports. I see that the works of the largest factories and the money that they earn are usually withdrawn abroad, therefore, what can I talk about? Why attack when almost all of the country's industry is controlled from there?

    Here, for example, I was in Krasnoyarsk. There is such a large micro ... macromillionaire, oligarch Melnichenko. His fortune is 17,5 billion. He owns coal, opencasts and at the same time, of course, housing and communal services. Housing and communal services of the entire Krasnoyarsk Territory, which consumes all this coal, which is mined at these sections. Naturally, this utilities are 60% worn out. It’s not even necessary to say that it is not completely repaired or modified. It’s not even necessary to tell once again that this coal mine poisons air, water and the nature of the Krasnoyarsk Territory. That China, switching to Russian gas, which China sells for 80 cents, and to Russian citizens at 4.20, refuses coal because it creates smog.

    But we will continue to be drowned with coal, because it is beneficial to the oligarchs. People are suffocating, people say that children are sick, that oncology is growing, but if it brings income to a person who is riding a yacht worth 400 million dollars somewhere in the Seychelles, then this will be so. Why fight with such a country? She already belongs to those who live there, she does not belong to those who live here.
    1. ZHIGAN
      ZHIGAN 16 March 2018 11: 13
      I also wrote about this ... WHY? ... Putin didn’t show cartoons to the West, but to the internal de ... lam !!! Who can’t understand what they’re driving by their nose! fool
    2. ruslann004
      ruslann004 16 March 2018 11: 32
      Well, how many lies do you have ...
      When did you manage to sell gas to China at 80 kopecks? Have you already conducted a pipe to China? Why are you lying?
      Why attack us and fight? Yes, in order to take everything that is possible and take all the profit from the same Melnikov. Do you remember what you did west in Russia in the 90s? And what did this lead to? Do you want one more time?
      1. Amurets
        Amurets 16 March 2018 13: 05
        Quote: ruslann004
        When did you manage to sell gas to China at 80 kopecks? Have you already conducted a pipe to China? Why are you lying?

        Svobodnensky gas processing plant is still under construction. And here is the energy transition in China
        Electricity in the PRC comes from two hydroelectric power stations, Zeya and Bureyskaya, and by the way and to most of the Russian Far East, too. Here, near Amur, two tunnels for a gas pipeline were broken, just not visible in the photo.
    3. K.A.S.
      K.A.S. 16 March 2018 11: 38
      if max is so correct, then why did he become the confidant of Grudinin, a person with, so to say, not the best reputation, and the field of his hysteria. when Grudinin started asking uncomfortable questions. somehow max is not trustworthy !!!
      about electricity to citizens and China. There is such a concept as a wholesaler. China is a large wholesaler and he is interested in a lot. cheap and for a long time!
      you won’t give up coal quickly and you won’t figure it out quickly with oligarchs, you can quickly thresh your tongue only from TV screens
    4. naidas
      naidas 16 March 2018 19: 19
      lies with the Echo of Moscow, compare tariffs for the population (Moscow Region 6rub / cube and China 350doll for 1000cub, while China is also investing in infrastructure in addition to payment.
  8. MadCat
    MadCat 16 March 2018 11: 48
    In total, Transneft has planned an increase in exports of ultra low sulfur diesel fuel (ULSD) by 3 million tons (to 26 million tons) this year. ULSD is the cleanest diesel fuel used to fuel cars in Europe.

    Andrew Reed, analyst at consulting company ESAI Energy (USA), says that thanks to large hydrotreating investments, much more diesel fuel from Russia has become “a clean product that is suitable for Europe.” “Currently, Russia exports only more than 650000 barrels of ULSD per day, which allows it to supply more than 500000 barrels per day to this [European] market,” the expert noted.

    and all this against the background of scandals with diesels in Europe and the general fashion (subsidies) for electric cars? By 2021, the production of these goes to the maximum, emission laws will be tightened and large auto giants will curtail the production of diesel engines. Not to mention the fact that they are preparing a complete ban on ICE in megacities. They are modernizing very on time ...
    1. Vadim237
      Vadim237 16 March 2018 20: 16
      "Not to mention the fact that they are preparing a complete ban on ICE in megacities." 20 years later - maybe.
      1. MadCat
        MadCat 17 March 2018 02: 20
        Quote: Vadim237
        "Not to mention the fact that they are preparing a complete ban on ICE in megacities." 20 years later - maybe.

        according to the mind, this is exactly what you need to do, but 1) SMOG 2) artificial barrage taxes on internal combustion engines "help" make the "right" choice. The Geneva Motor Show is an example of this.
        Quote: Squelcher
        So rejoice, our electric cars will not appear soon, therefore, high-quality diesel will be in Russia.,

        there’s a catch, they are forced to drive clean diesel to Europe because of the standard that costs money, in Russia since it is not so strict, you can save ... fellow
    2. Squelcher
      Squelcher 17 March 2018 00: 07
      So rejoice, our electric cars will not appear soon, therefore, high-quality diesel will be in Russia.,
  9. andrej-shironov
    andrej-shironov 16 March 2018 16: 43
    Quote: Galleon
    Well, who will refuse first: citizens on diesel SUVs or villagers on tractors? Who will have more money? I would not like the consequences of such failures.

    This is not the main thing, believe me! The main thing is that Rosneft and Sechin compensate for the five shortfalls in Europe by raising prices on the domestic market!
  10. Cadet
    Cadet 16 March 2018 20: 27
    And some refineries are tricky when shipping fuel to the domestic market, there are various tricks that sometimes underfilling in the tank is from 100 to 200 liters.
    1. The comment was deleted.
  11. Icarus
    Icarus 17 March 2018 09: 17
    Of course, the construction of an oil refinery in Russia is a blessing, as it will provide more jobs, but it still does not remove our economy from the oil needle, just the “needle” becomes modernized - fuel. These are all nothing more than cosmetic transformations of the economy, sharpened by big capital in favor of big bureaucracy.
  12. Curious
    Curious 18 March 2018 02: 22
    It would be better if, for starters, Chuvakin reviewed the main development trends in the global automobile transport market and their impact on the oil refining industry. Then the question could have arisen - are you going the right way, comrades?