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Yakutia thought about the production of gasoline

Why is it more profitable to import fuel to the republic, EastRussia found out

The head of the Republic of Sakha (Yakutia), Aisen Nikolaev, announced the start of work on the creation of the production of its own motor fuel in the region. A working group of officials, business representatives and the public was formed in the republic, which began the selection of a place, the development of a financial model and a technical justification. The previous Yakut project in Aldan, designed for full coverage of the republic’s fuel needs, was estimated at 64 billion rubles. Experts agree that large oil refineries in Yakutia will not survive in competition with the refinery of vertically integrated oil companies.

Yakutia thought about the production of gasoline
Photo: Roman Kordonsky / khab-npz.ru
Last Sunday, the head of Yakutia, Aisen Nikolayev, stated the need to create in the region its own production of fuel. The initiative is caused by low quality and high fuel prices in the retail segment, dominated by independent oil traders.

As the Minister of Industry and Geology of the Republic Maxim Tereshchenko reported on Tuesday, in accordance with the instructions of the head, a working group of representatives of the government of Yakutia, the business community and the public has been formed. “We are reviewing implemented and future projects, assessing the possible location, developing a financial model and a feasibility study. The results of the work carried out will be further submitted for consideration and discussion, ”the official said.


One of the largest players in the fuel market of the republic OJSC Sakhaneftegazsby participates in the work. “The government has such studies (creating fuel production in Yakutia), and we support such an initiative. Our company, including, continues to work on the search for oil refining opportunities, but these projects are extremely expensive, ”said the company's general director Igor Nikitin. According to him, while there is no clarity in the investment component, it has not been determined whether the project will be implemented on the terms of a public-private partnership or on private investment.


Before this, the question of the organization of own production in the republic was raised by the former head Yegor Borisov. Then, in 2014-2016, it was intended to fully cover the fuel needs of the Aldan refinery project. OAO NK Tuymaada-Neft intended to build a refinery in Aldan with a refining capacity of up to 2 mn tons of oil per year and a refining depth of 93%. The project was estimated previously in 64 billion rubles, investors were sought in China, but without success.


One of the options under consideration is the production of natural gas from the Otradninskoe and Srednevilyuysky deposits. Entrepreneur Afanasy Maximov reported on plans to create a joint stock company with the participation of the government of the republic to local media. According to him, we are talking about three installations for the processing of natural gas into synthetic motor fuel with a capacity of 90 tons per day. They can be located in Lensk, near Yakutsk and in the Vilyui group of uluses. The project implementation, according to the entrepreneur, will require about 9 billion rubles, the payback period is seven years. At the same time, Afanasy Maximov plans to start production in three years. Sources of financing - borrowed funds. According to him, local authorities are ready to provide access to raw materials and backbone grids.


According to the former deputy minister of housing and communal services of Yakutia, Alexander Koryakin, who worked for several years at Sakhaenergo, it makes sense to build a mini-refinery with a production volume of 100 thousand tons per year. It’s impossible to compete with a major producer like the Angarsk Refinery. “Angarsk has a scale effect, and they deliver both by rail and water transport - the cost is cheap. We have to find a “middle ground” - for example, if we take the Northern Sea Route, it can come out cheaper. It also depends on which technology will be used. But even if we produce at home, we’ll close the market’s needs to 30-40%, and this will have little effect on the pricing policy, ”the expert says. At the same time, Mr. Koryakin recognizes the need to "once start processing, leaving added value on its territory." According to his estimates, the republic needs about 1 million tons of light oil products per year.


Senior Researcher, Institute of Economic Research, Far East Branch, Russian Academy of Sciences, Ph.D. Olga Dyomina estimates the capacity of the domestic market of Yakutia in 1,5-2 million tons of fuel per year, which is “not enough to create a modern refinery”. In turn, the demand for petroleum products in the Far East is estimated at 12 mln. Tons annually, in the long term - with growth to 15 mln. Tons. At the same time, the market is already divided: demand is provided by supplies from Khabarovsk (owned by NOC), Komsomolsky and Angarsky (included in Rosneft ") Refineries with a margin of stability due to the diversification of activities within the framework of vertically integrated oil companies and the redistribution of income between different areas of activity. “There is a question about the economic sustainability of the new independent producer of petroleum products, especially in the harsh climatic conditions that increase the cost of production. Probably, to compensate for high production costs in regulating the prices of petroleum products for consumers of the republic, special measures of support will be required for the new producer, ”the expert believes.



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