The launch of the units is the first step for TANEKO, a company of TATNEFT Group, as it implements full-scale production of automobile petrols meeting the Euro 5 environmental standard.
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President of Tatarstan Rustam Minnikhanov: Mr President, this is a project we started in 2006 in accordance with your instructions: 307 billion in investment, a 99.2-percent refinery yield, and a design capacity of 8.7 million tonnes instead of 7 million tonnes. Today, we completed and, pending your order, can launch a naphtha hydrotreating unit and an isomerisation plant worth $200 million. The work continues.
If you issue the command – we now have Nizhnekamsk joining us –the CEO could give us a brief report.
President of Russia Vladimir Putin: Go ahead.
Tatneft Director General Nail Maganov: Good afternoon.
Mr President, we have fulfilled your assignment to enhance the refining of petroleum produced in Russia. Notably, the Government has taken all the necessary decisions to stimulate petroleum refining capacities for the industry, to expand private-public partnerships, to develop infrastructure, and to provide tax incentives. As a result, a new petroleum refinery complex of an innovative technical level was built in Nizhnekamsk with the highest possible refinery yeild. To date, we have zero output of heavy petroleum products, only light petroleum products.
In the course of project implementation, the company invested 307 billion rubles, created 3,500 new jobs, and refined more than 50 million tonnes of petroleum. The construction site employed over 10,000 builders at the peak of the effort, not counting those who were engaged in machine building, design, and production support. With them, the number would be 10 times greater.
In the course of the project, our machine engineers have developed 25 new groups of equipment that we actually use here: reactor equipment, electronics, automation, and pumping and compressor equipment. Some of them were never made in Russia before.
Mikhail Smirnov, CEO of the United Heavy Machinery Plants, is here at the site with us. It is no accident that it was with the Izhora Plants that we implemented the first project, which was unparalleled for the domestic petroleum refinery industry. He came here now to get acquainted with our future plans.
As Mr Minnikhanov mentioned, the project continues to evolve. We decided to pursue, until 2025, the sites that we will build. Currently, 6,000 people are working at the construction site, and construction work continues.
We have two new production facilities ready for launching: a naphtha hydroprocessing plant for 1.1 million tonnes and an isomerisation plant for 420,000 tonnes per year. Notably, the isomerisation plant is 100-percent Russian design. It was the first time that our machine builders and we used the assembly of oversize production units in domestic construction.
Mr President, we would be honoured, and it would be only fair, if you gave the command to launch these plants. No new refineries have been built since the late 1970s, before the decision was made to enhance petroleum refining and proper conditions were put in place.
Vladimir Putin: Go ahead.
Nail Maganov: Thank you, Mr President.
Let us begin.
Mr President, thank you very much. We started the launching procedure.
Vladimir Putin: Mr Maganov, I congratulate you and your big team, including the builders and engineers. What you did is truly a great job and an excellent result. I wish you every success in your future work.
Nail Maganov: Thank you. I wish every success to you as well, Mr President.
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President of Tatarstan Rustam Minnikhanov: Mr President, I have briefed you on the Republic’s work. I would like to focus today’s meeting on further development. Of course, the measures taken in recent years present an opportunity for implementing large investment projects.
I wanted to raise something with you today. We have worked out, with federal agencies, particularly, with the Finance Ministry, the SPIC 2.0 variant – a special investment contract that makes it possible to carry out large projects. The draft is already with the Government, the Finance Ministry has approved it, it has to be adopted at the spring session.
This document allows us to carry out large, major projects, it expands the special investment contract. It involves processing industries only, but new opportunities are emerging in transport and other areas. It has been approved at the level of the Finance Ministry.
Vladimir Putin: It is a good initiative. Let us discuss it in detail but we definitely support it in principle.