OREANDA-NEWS. August 18, 2008. Achinsk Refinery hosted a conference dedicated to the implementation and effects of new environmental and process regulations on motor gasoline, diesel and bunker fuel, jet fuel, and heating oil, which will come in force on September 15, 2008, reported the press-centre of Rosneft.

The conference brought together Achinsk Refinery and Rosneft-Krasnoyarsknefteprodukt’s executives, managers from other Rosneft subsidiaries, regional government officials, representatives of relevant regulatory agencies, major fuel and lubricant consumers, owners of the largest regional filling station networks, dealership managers, etc.

The regional government’s Minister for Industry and Energy Denis Pashkov was particularly appreciative of this collaborative effort. Mr. Pashkov believes the conference has become a real milestone for the regions’ petroleum product business, and will tangibly contribute to further improving the quality of fuel sold in the local market.

According to Denis Pashkov, the rising demand for fuel in the Krasnoyarsk region primarily stems from the fast-increasing motor vehicle penetration, with a total annual fleet growth of no less than 10%. At the same time, the region is already faced with threshold air pollution. Thus, in Krasnodar, fuel exhausts currently account for 60—70% in gross air pollutant emission. In compliance with the new regulations, starting from January 1, 2009, Russia will completely shift to Euro-3 gasoline production.

Achinsk Refinery has been actively implementing a full-scale modernization program to ensure it fully complies with the new environmental and process requirements. In 2007—2008, the refinery completed a major production infrastructure upgrade that involved switching the reforming unit to a new and more efficient catalyst, certifying the quality control system to current international standards, and installing cutting-edge equipment at the plant’s laboratory.

In December 2007, Achinsk Refinery also completed an isomerization unit that enabled production of high-quality Regular Euro-92 and Regular Euro-95 gasoline as well as diesel fuel complying with Euro-3. In his conference speech, General Director of Achinsk Refinery Yury Kasyuk noted that the management would intensify efforts to further develop the plant’s infrastructure, which should involve upgrading the existing and constructing new facilities to commence Euro-5 gasoline and diesel fuel production.

Rosneft-Krasnoyarsknefteprodukt, the Company’s wholesale subsidiary operating in the Krasnoyarsk region, currently accounts for approximately half of the local petroleum product market. Krasnoyarsknefteprodukt’s competitive advantages include wide delivery options (ex-works, rail delivery, truck delivery), a comprehensive quality control system that covers every stage of the supply chain, timely petroleum product delivery, well-defined and balanced pricing, etc.

According to the company’s General Director Andrey Kostyunin, Rosneft- Krasnoyarsknefteprodukt is now increasingly focused on broadening its presence in the local petroleum product retail market through acquiring and constructing modern filling stations, which will eventually enhance Rosneft’s competitive position due to better brand recognition. In the coming years, Rosneft-Krasnoyarsknefteprodukt will also continue to develop its tank infrastructure and expand the vehicle fleet.

"We expect to complete a fully-fledged retail infrastructure by 2012, which should allow capturing at least 20% in the respective market segment already the following year," — Mr. Kostyunin said.