EFRA − towards effective refining
EFRA, that is the Effective Refining programme, is a continuation of the wider effort to technologically modernise the refinery, and completion of the deep crude oil processing chain, which was initiated by the modernisation under the 10+ Programme, closed in 2011. It involves an investment in a Delayed Coking Unit , designed to ensure more advanced conversion of crude oil.
Implementation of the EFRA Project, thanks to connecting new units with the existing ones at the Gdańsk refinery, will mean a higher yield of high-margin products per each oil barrel processed by the refinery. In practice, EFRA means that:
- The refining margin per barrel of oil processed will increase by approximately USD 2/bbl,
- The EFRA units will turn out approximately an additional 900,000 tonnes of high-margin fuels per year, which will add PLN 0.6bn to EBITDA annually.
- When the project work is completed and the new units come on stream, the LOTOS Group refinery will be able to process each tonne of heavy residue into some 700 kg of fuels and 300 kg of coke, without having to produce unprofitable heavy fuel oil.
The project is scheduled for completion in the first half of 2018. Completion of the EFRA Project will take the Gdańsk refinery's Nelson Complexity Index above 10.5. In 2016, the figure was 10.
Summary of two years of implementation of the EFRA Project
Our achievements under the EFRA Project in 2016
- In 2016, all necessary building permits required under the project's credit facility agreement with financing institutions were obtained,
- and all contracts for construction and modernisation of the units, auxiliary facilities and infrastructure were signed.
- Work on engineering design of the key Delayed Coking/Coking Naphtha Hydrotreating Units (DCU/CNHT), Hydrogen Generation Unit (HGU) and Hydrowax Vacuum Distillation Unit (HVDU) was nearing completion, and the necessary procurement activities were under way.
- Work on delivery and assembly of auxiliary facilities was carried out.
- Preparations for the Spring 2017 maintenance shutdown were performed to ensure smooth execution of the EFRA works planned to be carried out during the shutdown.
Refining strategy for 2017–2022
The refining strategy will focus on building competitiveness with innovative technologies (e.g. EFRA)/maintaining technological advantage. Expected outcomes of innovation:
- The volume of high-margin products is expected to rise (on the back of investments in new technologies, such as construction of a new olefin complex or manufacture of motor gasolines from naphtha),
- New products will be launched on new markets (e.g. high-margin proprietary base oils made from hydrowax),
- Refining efficiency will improve (thanks to the construction of a CHP plant to meet internal needs of the LOTOS Group).