Bulgarian market and necessity of a brand new fuel “MAX”

Abstract

The strategic direction for the development of the Burgas Refinery LUKOIL NEFTOCHIM – BURGAS AD, company OAO LUKOIL at the market of the Balkan Peninsula is the following: provision of wholesale and retail high quality and environmentally friendly fuel of Euro -5 class and keeping the leading position on it. The European Union (EU) countries are currently experiencing deficit of fuel, the so-called Diesel shortage. The lack of fuel at the EU market is a consequence of the changes in the standard for engine fuel produced in compliance with the quality requirements laid down in standard EN590. Widespread use of fuel is dictated by necessity to make savings. Therefore, the EU market has tended to increase the number of vehicles equipped with diesel engines, the proportion of which in relation to gasoline vehicles at present time has increased by half. Currently, in the countries of Eastern Europe, including the Balkans, there is a shortage of fuel, which will accrue. For the period from 2015 to 2030, deficit is projected to reach 45 million t/y. This is the reason for the constant increase of prices in the Republic of Bulgaria, which in the EU have the lowest values of the order of 1.28 - 1.30 Euro/ liter. To overcome this deficiency it is necessary to expand the refining capacity of Burgas refinery, and develop a scheme to increase the output of fuels of Euro -5. A large investment program for Burgas refinery exceeding $ 1 billion has been developed and its implementation is in progress. However, it is especially important to keep the present position at the market for ordinary customers as the company–vendor of high-quality and environmentally friendly fuel. This testifies the attention paid to the preservation of environment at the Balkans region where vertically integrated oil company (VIOC) OAO LUKOIL is present. The new fuel brand of LUKOIL BULGARIA EOOD will compete with other brands of oil companies at the market. Motor fuel Max can be produced on a par with the presently sold fuels “EKTO” of Oil Company LUKOIL as per new brand standards and in terms of quality will meet the requirements of European Standards (EN 228, EN 590).