Fuels

The Bazan Group produces and markets fuel products to fuel and gas marketing companies in the Israeli markets as well as to customers throughout the world (primarily in the eastern Mediterranean). The fuels sector is one of the Group’s principal business areas and refining is carried out in the Company's refinery located in the Haifa Bay area.

The maximum daily refining capacity of the Bazan Group’s facilities is approximately 197,000 barrels of crude oil (approximately 9.8 million tons per year). The type of crude oil processed and the actual refining capacity are determined on the basis of the Company's requirements and general optimization. 

The Company's plant operates 24/7 with the exception of initiated shutdowns for ongoing maintenance purposes, periodic servicing or problem resolution. The Bazan Group takes pride in its average utilization rates of approximately 90% per year (and up to approximately 98% during the months of full operations). Furthermore, the Bazan Group’s refinery has a ranking of 9 (out of 10) on the Nelson Index. 

In the fuels sector, the Bazan Group operates in:

Purchase of crude oil and intermediate products

Refining, separation and processing

Raw materials for various products (both end products and products used as raw materials in the process of manufacturing other products).

 Sale of finished petroleum products

to customers in the Israeli and international markets.

Sale of intermediate products

to customers in the Israeli and international markets.

The Bazan Group’s Fuels Unit is constantly working to enhance, upgrade and expand its facilities. This is in accordance with plans approved by the Group from time to time, which have been determined in order to respond to updated market requirements and/or to create products which meet the stringent quality requirements in terms of environment and security.

Oil refining is a multi-stage process designed primarily to separate the various components of crude oil in order to turn them into products such as gasoline, naphtha, diesel fuel, kerosene, fuel oil, and liquefied petroleum gas (“LPG”) and bitumen. The Group’s refining processes are carried out at high temperatures of up to 900 degrees Celsius at pressures of up to 180 atmospheres. Some of these processes use catalyzers in order to hasten the chemical process and/or to crack the intermediate products.

Leading player in its field

The Bazan Group is considered to be an important international player in the fuel sector owing to a number of key advantages which receive full attention in the Company: 

• Maintenance of position and reputation as a reliable company – both in terms of product quality and compliance with various regulations as well as in commercial relations with customers and suppliers.
• Building of stable long-term relations with customers in the local and international markets.
• Highly motivated teams of workers and managers who work with uncompromising professionalism.
• Operational and technological capabilities which enable the use of more than 10 types of crude oil.

• Capability of producing fuel products efficiently and readily.

• Capability of producing petroleum products complying with stringent requirements in a variety of mixes.

• Commercial flexibility when purchasing raw materials.

• Technological capabilities which make it possible to seize business opportunities in accordance with changes in the various markets.
• Increased competitive power by virtue of the synergy between complementary interfacing activities in order to produce products with greater added value which are also environmentally friendly.
• Use of natural gas as a substitute for fuel oil.
• Use of natural gas as a raw material and an alternative to materials in the petrochemicals production process.