OILGASCHEMCIAL COMPLEX OF THE REPUBLIC OF TATARSTAN

1
OIL-GAS-CHEMCIAL COMPLEX OF THE REPUBLIC OF
TATARSTAN
MINISTRY OF TRADE AND FOREIGN ECONOMIC
COOPERATION OF THE REPUBLIC OF TATARSTAN
OAO TATNEFTEKHIMINVEST-HOLDING
2
The Oil-Gas-Chemical Complex of the Republic of
Tatarstan is the backbone budget-forming sector
of industry that determines a stable and
progressive development of the economy in general
3
Percentage of Products Manufactured by
Enterprises of Oil-Gas-Chemical Complex of the
Republic of Tatarstan in the Total Russias
Production
4

• Percentage of Products from the Republic of
  Tatarstan in the Total Russias Output
• ethylene 40
• propylene 23
• benzene 17
• styrene 64
• phenol 22
• acetone 20
• synthetic rubber 25
• polyethylene 40
• tyres 29

5
Contribution of Enterprises Representing
Oil-Gas-Chemical Complex to the Economy of the
Republic of Tatarstan
6
In the structure of Tatarstans industrial
output, the contribution from enterprises of this
sector is 49. The complex accounts for over 50
of the Republics budget and employs one third of
industrial workers. The oil-gas-chemical complex
of the Republic of Tatarstan is represented by 24
enterprises of different organisational and legal
forms, with 4 of them (??? Tatneft, ???
Nizhnekamskneftekhim, ??? Nizhnekamskshina,
and ??? Kazanorgsintez) being the largest
budget-forming enterprises. ???
Tatneftekhiminvest-Holding is a structure that
coordinates the operation of enterprises of the
sector.
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Integration of Oil-Gas-Chemical Enterprises
Within the Republic
8
Enterprises of the sector are organised into
common process chain extracting enterprises
processing enterprises enterprises
manufacturing semi-products of basic organic
synthesisenterprises manufacturing finished
products
9
Supply of Raw Materials to Oil-Gas-Chemical
Enterprises of the Republic of Tatarstan

Raw materials 40 - own 60 -
external
Kirov Synthetic Rubber Plant
Straight-run gasoline
SKD
oil
??? NNPZ
Yefremov Plant
(ELOU-AVT-7)
Divinyl
Styrene
Ethylene
Propylene
Pyrolysis
Oil-well
resin
Middle distillates
Middle distillates
gas
Butyl rubber, commodity
Carbon black
Stable natural gasoline hexane
??? MGPZ
Carbon black
Butyl rubber
Liquefied gas for
Isobutane
Ethylene
??? NKSh
N. butane
domestic uses
Isopentane
SKI-3
N. butane
Liquefied gas
Ethane
Ethane
Ethylene
External suppliers
10
Basic Products, 000 MT
11
Plans for Development of the Republics
Petrochemical Industry
12
The strategic long-term goal of the sectors
development is to saturate the demand for
competitive products through development and
introduction of resource-saving and
environmentally sound technologies within the
open economy. To attain the goal, we need to
ensure the support in raw materials, innovations,
and investments. One of the topical issues in the
republic is for today the insufficient degree of
hydrocarbon raw processing, which significantly
reduces the value of the oil products basket
obtained from 1 MT of crude oil. For this reason,
it is very important to further improve the
petrochemical complex of the Republic of
Tatarstan with complete cycle of oil refining on
the basis of advanced technologies that would
help increase the degree of refining. This goal
can be achieved with attraction of large-scale
foreign investments that would be used both for
the financing of investment projects, and, what
is even more important, for the attraction of
advanced foreign technologies. Most preferable
forms of cooperation with foreign partners are
setting up joint productions with full or partial
participation of foreign investor.
13
Planned Ethylene Processing Production
Development at ??? Nizhnekamskneftekhim, 000
MTY
Foaming polystyrene - 40.0
Extrusion Polystyrene 100,000 cubic metres
High-impact and crystalline polystyrene - 120.0
Styrene 250.0
Ethyl benzene 290.0
ABS Plastic 20.0
Antifreezes 40.0
Monoethylene glycol 220.0
Ethyl cellosolve
Methanol-2.5
Ethylene oxide 260.0
Brake fluid 10.0
Nonylphenol ethoxylate - 58.0
EP-450 (600) Ethylene Plant OAO NKNH
Alpha-olefin sulphonates -1.0
Detergents
Alpha-olefins 100.0
Linear alkyl benzenes-30.0 Alkyl benzene
sulphonates
Detergents
Benzene 6.0
To ??? Kazanorgsintez
Commercial ethylene-90.0
Synthetic oils- 10.0
Semi-synthetic oils - 30.0
Already operated facilities
Facilities under construction
Projected facilities
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OAO Nizhnekamskneftekhim

• Basic complex for ethylene production and
  processing are pyrolysis furnaces EP-450 (600) of
  Ethylene Plant under Nizhnekamskneftekhim and
  process-related facilities of 2nd industrial
  area.
• Reconstruction and modernisation of the pyrolysis
  furnaces in the period 2000 to 2005 would enable
  the company to increase the output of
• ethylene, up to 600,000 MT
• propylene, up to 300,000 MT
• benzene, up to 220,000 MT
• divinyl, up to 100,000 MT
• As a raw material for pyrolysis, the following
  products of Nizhnekamsk Refinery would be used
• straight-run gasoline, up to 1,060,000 MT
• aviation kerosene up to 400,000 MT
• hydrotreated diesel fuels, up to 380,000 MT per
  year.
• Solving the ethylene supply problem would enable
  the company to proceed to the full-scale
  implementation of projects in Nizhnekamsk to
  produce styrene polymers and copolymers and
  products thereof, linear alkyl benzene and
  synthetic detergents, oil bases and synthetic
  oils. In 2003, facilities for high-impact
  polystyrene production rated at 50,000 MTY will
  be put into operation it is planned to create
  facilities to produce linear alkyl benzene and
  synthetic detergents on its basis, as well as
  polystyrene foam, ABS plastic, extrusion
  polystyrene foam, and polypropylene rated at
  120,000 MTY.

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Planned Propylene Processing Developments at OAO
Nizhnekamskneftekhim, 000 MTY
Component A 10.0
Propylene oxide 65.0
Polyurethane foam
Polyethers 48.0
Phenol
Ethylene oxide
Propylene trimers 140.0
Alkyl phenols 21.0
Surface-active substances 64.7
Propylene OAO NKNK 240.0
Dye concentrates
Propylene tetramers 10.0
Polypropylene foam
Carbon black concentrates
Polypropylene 120.0
Pipes and fittings
Thermoplastic elastomers
Packaging materials
Consumer goods
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Already operated facilities
Facilities under construction
Projected facilities
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Development of rubber facilities at
Nizhnekamskneftekhim
Mixture of pentanes and isopentanes to ETHYLENE
500
Imported butane
125,000
C4C5
Low-temperature
Modernised plant IF for isoprene
Methanol
isomerisation at I-7 of
Tatneft
synthesis from methanol and
CGFU
butane into isobutane
isobutylene, rated at 210,000 MTY
Normal butane
Isoprene
Isoprene polymerisation
into SKI rubber or
Isobutane
Isobutylene
Dehydration of isobutane
polyisoprene, KI plants
into isobutylene at DB-2
SKI-3 rubber 200,000 MTY
Isobutane
SIBUR
Butane-butylene mixture to ETHYLENE 600
Oligomerisation and further
separation
Auto-gasoline AI-93 80,000 MTY
BBF from Russian refineries
( from Nizhnekamsk Refinery, some 128,000 MTY)
EthyleneDivinylPropylene from ETHYLENE 600
Butadiene-styrene rubbers (solutions) 60,000
MTY
Synthesis of divinyl-styrene and (I gr.)
Ethylene-propylene rubbers SKEPT 15,000 MTY
ethylene-propylene monomers
Styrene from SPS plant of 2nd area
BR 30,000 MT
CBR 25,000 MT
Isobulylene-butylene fraction from ETHYLENE 600
HBR 30,000 MT
Production of BK butyl rubber
BBR 5,000 MT
BR - 58,000 MT
BK plants and new
Already operated facilities
Facilities under construction
Projected facilities
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OAO Nizhnekamskneftekhim
The implementation of a package of investment
projects to ensure the growth in output and
widening of the range of synthetic rubbers would
enable OAO Nizhnekamskneftekhim to produce a
full spectrum of rubbers for tyre sector and
other manufacturing industries in the quantity of
over 300,000 MT. By now, ethylene-propylene
rubber production facilities have been put into
operation, the work to create halo butyl rubber
production facilities rated at 30,000 MT is
nearly completed, and construction of
butadiene-styrene production rated at 60,000 MT
is planned.
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Planned Ethylene Processing Developments at OAO
Kazanorgsintez, 000 MTY
De-emulsifiers - 25.5
Ethylene oxide - 1st line 18.7
Monoethylene glycol - 35.0 Diethylene glycol -
23.5
Ethylene 40.1
79.9
Organic products plant
Ethylene oxide - 2nd line 60.0
OAO NKNK, OAO SNOS
Butyl cellosolve - 3.0
Organic peroxides 1.2
Auxiliaries for textile sector - 18.8
Ethylene plant 525.0
Ethanol amines - 14.5
HDPE powder 10.0
HDPE plant - 260.9
197.0
HDPE granulate 250.9
LDPE - 2nd line 72.0
Composite materials production
LDPE plant - 184.0
184.0
LDPE - 3rd line 114.0
Plastics processing plant
Pipes and parts- 52.4 , incl. gas pipes 24.5
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Already operated facilities
Facilities under construction
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OAO Kazanorgsintez
The second largest company in Tatarstans
petrochemical complex is OAO Kazanorgsintez. It
is the only manufacturer in Russia with both HDPE
and LDPE production facilities with total output
of 380,900 MT. This enables the company to be
more flexible in responding to the changing
demand for various PE brands both in
international and domestic market. A considerable
portion of high density polyethylene manufactured
by the company is used in the in-house production
of cold water pipes and gas distributing pipes.
Investment package of OAO Kazanorgsintez
includes projects of increasing the ethylene
production output from 375,000 MTY to 525,000
MTY, polyethylene production output by 150,000
MTY (including the organisation of linear bimodal
polyethylene production), projects of peroxide
facilities reconstruction and organisation of
metal-polymeric pipes production.
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Planned Tyre Production Developments at OAO
Nizhnekamskshina
In the structure of Tatarstans oil-gas-chemical
complex, a special role is given to OAO
Nizhnekamskshina as a manufacturer of
petrochemical synthesis end products. The
development strategy of this Tatarstans tyre
manufacturer is the implementation of the
following investment projects - Organisation of
all-steel car tyres production with capacity of 2
million tyres per year. - Organisation of R15,
R16, and R17.5 light-truck tyres production with
capacity of 2 million tyres per year. -
Organisation of green tyres production.
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Construction of Nizhnekamsk Oil Refinery
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OAO Nizhnekamsk Refinery
A current priority to the development of
petrochemical industry in the Republic of
Tatarstan is to establish a high-technology
complex in Nizhnekamsk to be aimed at production
of environmentally sound oil products out of
high-sulphur oil. General investor and
implementation co-ordinator for the project is
OAO Tatneft. Products to be made at the
complex would be liquefied hydrocarbon gases,
straight-run gasoline, gasolines A-76, AI-92,
AI-95, and AI-98, hydrotreated jet fuel,
hydrotreated diesel fuel, fuel oil, road
bitumen, and granulated sulphur. The construction
of Nizhnekamsk Refinery is being carried out in
two stages. Deep Oil Processing Complex is
scheduled to be completed in 2008. Stage 1 -
Construction of a Basic Complex based on the
currently functioning preliminary distillation
unit ELOU-AVT-7 owned by OAO Nizhnekamskneftekhim
. Stage 2 - Construction of a Deep Oil
Processing Complex. In December 2002, the Basic
Complex of Nizhnekamsk Refinery was put into
operation with oil refining capacity of 7 million
MTY and degree of oil refining reaching 46 per
cent. The construction of Deep Oil Processing
Complex will be performed in two lines. The first
line of DOPC which includes 7 facilities suggests
the processing of up to 50 per cent of
high-sulphur oil and reaching the degree of
processing up to 74 per cent. The second line is
intended for the processing of 100 per cent
high-sulphur oil with degree of processing of 82
per cent (which would result in the decrease of
sulphur content down to 1 per cent).
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Flow Chart of OAO Nizhnekamsk Refinery
Straight-run gasoline to NKNK 1,066,000 MT
Natural gas
Sulphur
Hydrogen
Hydrogen sulphide
Liquefied gases 130,000 MT
Hydrogenproduction
Sulphurproduction
High-octane additives unit
Middle distillates hydrotreatment complex
Jet fuel
ELOU AT-7 Vacuum unit
Diesel fuel
Naphtha 98,000 MT
Kerosene fraction
Gasoline 953,000 MT
Marox
Jet fuel 500,000 MT
Gas oil
Naphthahydrotreatment
Diesel fuel 1,941,000 MT
Catalyticcracking
Naphtha
PPF 120,000 MT
Crude oil
Light and heavy gas oils
Naphthaliq. gases
Bitumen unit
Bitumen
Mazut
Hydrogen sulphide
Sulphurproduction
Sulphur 90,000 MT
Hydro-cracking
Diesel fraction
Vacuum gas oilfacilities
Vacuum gas oil
Fuel oil as remained
Bitumen 300,000 MT
Cracked residue
Oil tar
Viscosity breaking unit
Asphalt-free oil 1126,000 MT
De-asphalting
Gasification
Hydrogen
Asphalt 951,000 MT
Electric energy
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Already operated facilities
Projected facilities
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Flow Chart of New
Fraction 62-85C 105,000 MT to pyrolysis at OAO
NKNK
Fraction 62C 165,000 MT from OAO Nizhnekamsk
Refinery
Gas 90,000 MT
ELOU AVT-7 New unit
Isomerisation
Fr. NK 62 C 355,000 MT 190,000 MT
Gasoline fraction hydrotreatment complex
Straight-run gasoline 785,000 MT
Catalytic reforming
355,000 MT
Fr. NK 85-140 ? 490,000 MT
390,000 MT
Gasolines AI-98 AI-95 AI-80
Carbonaceous oil (100) 7,000,000 MT
800,000 MT
Gasoline blendingunit
MTBE, acrylate
60,000 MT
100,000 MT to OAO KOS
Fraction NK 140-350 C 1,800,000 MT
Middle distillates hydrotreatment complex
Ethylene 700,000 MT
ETHYLENE-700 plant Pyrolysis fractions
separation unit
Propylene 340,000 MT
2,750,000 MT
Fractions ?5 and ?4 168,000 MT to SK
Light vacuum gas oil 950,000 MT
Pyrolysis tar 700,000 MT to TU
Butylene-isobutylene fraction 142,000 MT
Heavy vacuum gas oil 648,000 MT
Benzeneproduction unit
Divinyl production unit
Motor oilsproductioncomplex
Oil tar 2,425,000 MT
De-asphaltisation
Butadiene 190,000 MT
Asphalt-free oil 970,000 MT
Benzene 378,000 MT
?2
Asphalt 1,455,000 MT
Electric energy
Gasification
Sulphuric acid
Mineral fertilisers
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Petrochemical Complex
Ethylene
Vinyl acetate
Copolymersthereof
LLDPE HDPE LDPE Cross-linked PE EVAC
Polymer processing facilities
Surface active substances Synthetic oils Higher
fatty alcohols
Alpha olefins
PE
Polyacetal resin
Polyethylene terephtalate Polyethylene glycol
Ethylene glycol
Ethylene oxide
Monoethanol amine
SAS
Acetic acid
Ethyl acetate
Acetaldehyde
Pentaerythrite
Paints varnishes
SKEPT
Propylene
Polyethers Polyurethane foam
Propylene oxide
Propylene glycol
Polypropylene glycol
Thermoplastic elastomers
Isopropyl alcohol
PAK ABS Acrylamide Polyacrylamide
Polymer processing facilities
Polypropylene
Acrylonitrile
Fraction C4
MMA
PMMA
Isobulylene
Halo-butyl rubbers Butyl rubber
Butadiene rubbers
Polyester resins
Butadiene-styrene rubbers, thermoplastic
elastomers
Benzene
Maleic anhydride
Styrene
Ethyl benzene
PS, ABS, SAN
Caprolactam, PA-6