Grupa LOTOS S.A. - Annual Report 2010

The newly built units offer huge potential capacities, while increasing the refinery’s flexibility. Ongoing output optimisation is becoming an issue of ever greater importance.

In order to better control the production flows, there are plans to deploy in 2011 a system for detailed scheduling of the refining process. It will allow Grupa LOTOS to monitor the implementation of its production plans on an ongoing basis and identify any deviations in time to take effective corrective measures.

• The Company is also engaged in investment activities. A number of projects are undertaken to increase the refinery’s flexibility, achieve efficiency gains and mitigate the environmental impact of the refining process. The key projects scheduled for 2011 include:
• construction of xylene separation and reformate splitter unit: separation of xylene fraction from reformate will reduce the share of noxious aromatics in engine gasolines blended at the refinery, in line with prescribed standards and environmental protection trends. Sales of xylene will complement or replace sales of reformate, which is the current method of reducing the share of noxious aromatics in gasoline products,
• upgrade of the furfural extraction unit: the project is designed to increase the unit’s capacity, thus increasing the availability of the TDAE plasticizer and reducing the unit’s energy intensity. The project will include addition of a third stage of furfural regeneration and modification of the process furnace system,
• replacement of furnaces at the light distillate hydrorefining unit: the project is designed to replace obsolete, heavily depreciated, furnaces, which will improve the unit’s energy efficiency and safety,
• extension of a high pressure gas pipeline to connect it to the refinery: the project is designed to connect the refinery facilities with the high pressure gas grid and use gas as a component for hydrogen generation and a fuel for the refinery’s fuel gas network. The use of natural gas will significantly reduce atmospheric emissions of CO₂,
• construction of a flare gas recovery unit designed to reduce atmospheric emissions of pollutants and the plant’s energy intensity. The project will involve the construction of a unit diverting gas which was burned in the flares from the discharge pipeline. The gas will be directed to fuel the process furnaces,
• air-tight sealing for tanks of the wastewater treatment plant – stage 2: the project, which is the continuation of the project executed in 2009-2010, is designed to mitigate the odour nuisance by sealing the air space of open tanks of the wastewater treatment plant and utilisation of degassing products on biofilters.

Work is also under way to define the scope of further expansion of the Gdańsk refinery, which is to involve the addition of a heavy residue gasification unit.