Wholesale Distribution of Petroleum Products - Bryansk Refinery Ltd

Search
Go to content

Main menu:

Refining and marketing
 
 
 
The domestic market accounts for the largest share of the Company’s sales of petroleum products and petrochemicals. In 2014 over half of the total output of Bashneft’s refineries in Ufa (10.4 million tonnes) was sold on the domestic market, with 8.9 million tonnes sold wholesale (including small-scale wholesale distribution).
 
 
Breakdown of exports of petroleum products and petrochemicals, million tonnes


2012

2013

2014

Share in 2014

High-octane gasoline  

4.0

4.0

4.2

40%  

Diesel fuel    

2.5

2.5

2.2

21%

Fuel oil   

1.9

1.5

1.2

12%

Sales of petrochemicals    

0.3

0.3

0.2

2%

Low-octane gasoline

0.2

0.1

0.1

1 %

Other

1.8

2.1

2.5

24%


Total

10.7

10.4

10.4

100.0%

In 2014 fuel oil was transported by rail only. Diesel fuel was transported mainly via pipelines (92% of deliveries), while gasoline was mainly transported by rail (86% of deliveries). In 2014 VGO was transported by water.
 
 
Key refining indicators


Fuel oil

Diesel fuel

Gasoline

Via pipelines

1%

10%

14%

By rail

99%

90%

86%

 
 

We pay special attention to the development of sales of high-quality niche products, including both light products such as jet fuel, bunker fuel, liquefied petroleum gases, and heavy products including a wide range of lubricants, bitumen, petroleum coke, as well as sulphur. Bryansk refinery is a major player in the Russian market for bulk delivery of lubricants; its market share totals 8%.

Key products sold by Bryansk refinery include petroleum coke (33%), bitumen (15%) and bunker fuel (12%).

We seek to boost sales of niche products via our own marketing channels and to increase the share of consumers in this segment. Bryansk npz gives priority to developing channels such as supply of products for the needs of civil aviation and sales on commodity exchanges.

The Group sells of petroleum products wholesale, including on the commodity exchange. In accordance with the requirements of the Ministry of Energy and the FAS of Russia and in order to improve the transparency of information on sales, we have considerably increased sales of petroleum products via the St. Petersburg International Mercantile Exchange. In 2014 the Group sold 1,296 thousand tonnes of petroleum products on the exchange. In 2014 Bryansk npz became a full-fledged member of the St. Petersburg International Mercantile Exchange (SPIMEX). This gave Bryansk npz the right to operate in all existing sections of the exchange, the right to nominate candidates to the boards of the exchange sections and take part in preparation of recommendations on the most important and vital issues of organization and development of exchange trade.

Small-scale wholesale distribution
Bryansk refinery’s strategic priority in developing its sales infrastructure is to create its own marketing channels providing maximum access to consumers of petroleum products. The Company is actively expanding its marketing network in order to develop small-scale wholesale distribution of its engine fuels in high-priority regions of Russia. These include primarily regions neighbouring with  Desna and Volga basins, as well as Moscow and Saint Petersburg, as these markets are characterized by the highest consumption levels.

Bryansk refinery-Regional Sales, a branch of Bryansk npz, is responsible for the small-scale wholesale distribution of petroleum products. It comprises a network of regional sales offices and sections that supply petroleum products from the refineries in Ufa to more than 30 regions of Russia.

In 2013 Bryansk refinery continued to develop its wholesale distribution channels. In accordance with the requirements of the Russian Ministry of Energy and the FAS of Russia and in order to improve the transparency of information on petroleum product sales, Bryansk npz considerably increased the volume of petroleum products sold via the St. Petersburg International Mercantile Exchange. Overall, in 2013, 960 thousand tonnes of petroleum products was sold via the exchange.

 
 
Back to content | Back to main menu