Today, Bashneft started pilot operations of a catalytic cracking gasoline hydrotreater at its Bashneft-UNPZ Branch. A ceremony was held to mark the completion of the large investment project, and was attended by the Deputy Prime Minister of the Government of the Republic of Bashkortostan Dmitry Sharonov, the Chairman of the Board of Directors of JSOC Bashneft Felix Evtushenkov, Bashneft President Alexander Korsik and the Head of the Administration of the Ufa Municipal District Irek Yalalov.

The catalytic cracking gasoline hydrotreater is the latest large-scale project to be implemented as part of Bashneft’s upgrade programme at the Ufa refining complex. The project is aimed at ensuring compliance with the requirements of Russian technical regulations for fuel quality. The launch of the hydrotreater will enable the Company to transition fully to production ultra-low sulphur gasoline meeting Euro 5 emission standards, with sulphur content totalling less than 10 ppm (0.001%).

Construction of the hydrotreater started in 2012 and was completed in December 2013. Investments in the project exceeded RUB 5 billion.

'The launch of the new unit demonstrates our commitment to a strategy for modernization, technological development, lower energy consumption and making production more environmentally friendly,' underscored Bashneft President Alexander Korsik. 'Implementation of this project, along with construction of a hydrogen production unit, will enable the Company to start producing 100 percent of its gasoline and diesel fuel in accordance with Euro 5 standards ahead of schedule, as early as in 2014. In doing so, Bashneft will make a new substantial contribution to environmental protection.'

Note: The catalytic cracking gasoline hydrotreater (CCGH) at the Bashneft-UNPZ Branch was constructed under a licence of CD TECH, a U.S. company. This is the first licensed unit in Russia that employs the catalytic distillation technology using catalyst modules. Its throughput amounts to 3,500 tonnes per day (1.3 million tonnes per year). Products manufactured at the CCGH are used for producing high-octane gasoline meeting Euro 5 emission standards in accordance with Russian technical regulations.

The Bashgiproneftekhim institute was the general designer of the unit. OJSC VNZM (Vostokneftezavodmontazh) was hired as general contractor to construct the CCGH. Over 20 contractors and more than 600 specialists were involved in its construction. Equipment and materials were provided by companies from Bashkortostan and other regions of Russia, as well as manufacturers from France, Spain, the USA and Ukraine.