RusGazDobycha, which has teamed up with Gazprom to create gas processing facilities in Ust-Luga, plans to determine the licensor for pyrolysis production in the coming months. The company is responsible for supervising the project for creating a gas chemical complex.
Boris Anisimov, one of the top managers of RusGazDobycha, said at the CIS Gas Monetisation conference that various options for processing raw materials within this project, including MTO technology, were considered. Today, the gas processing technologies offered by global licensors are the priority.
“We will approach the choice of a licensor of pyrolysis production in about two months,” he stressed.
Within the framework of the Baltic Chemical Complex project, in the creation of which RusGazDobycha will invest independently, it is also planned to organize the production of polyolefins with a capacity of about 3 million tons. The final configuration of the project remains to be determined.
“About two years ago, working with McKinsey on this project, we had an active discussion on the implementation of about 3 million tons of polyethylene. And even then we understood where we would go, what discounts we would go through, regardless of other capacities under construction,”- said B. Anisimov, adding that Europe is considered to be the main market, supplies to China are not excluded.
One of the working options, as the speaker explained, was the sale of olefin raw materials for export.
“As a version, to become an ethylene supplier for consumers from Europe – we considered this idea two years ago. It was clear to us, that about 5 million tons of ethylene per year is sold in the world. We have an understanding of who transports it, and how it is being transported, ” – he said.
The current geopolitical situation, as it can be supposed, does not allow us to act as a guaranteed olefin supplier for European projects, so the decision to move further along the chain of processing looks logical.
In general, the creation of gas chemical facilities is the final stage of the project for RusGazDobycha and Gazprom. It is based on the idea to create an integrated complex for liquefaction (LNG) and gas processing (GPP).
“We have combined two very large-scale productions at the same site, thereby obtaining many synergistic effects. Today we are in the design stage,” – said B. Anisimov.
At the facilities of the complex, it is planned to process ethane-containing gas from the Achimov and Valanginian deposits of the Nadym-Pur-Tazav region in the amount of 45 billion cubic meters per year with the subsequent production of 13 million tons of LNG, up to 4 million tons of ethane and more than 2.2 million tons of liquefied hydrocarbon gases (LPG) . The remaining volume of gas (about 20 billion cubic meters) will be sent to the gas transmission system of Gazprom. In fact, it is these volumes of gas that will ensure the filling of the Nord Stream-2.
The project has already got a clear deadline for implementation defined. As B. Anisimov explained, the first stage should be put into operation in the third quarter of 2023, the second one should be commissioned in the third or fourth quarter of 2024. LNG production, in particular, will be launched in two phases of 6.5 million tons per year.
“Initially, the idea was to go with EPC, but I think that the construction will be separate. We will not be able to entrust everything to an EPC contractor on such a global project. The configuration of the project is a task that we will have to address ourselves in the near future, literally within two to three weeks, in order to initiate the start of the design work,” – B. Anisimov concluded.
The total investment in the project is estimated at 700 billion roubles. The estimated plant revenue is more than $ 4 billion a year. The project operator is a special purpose company RusHimAlyans LLC, created on a parity basis by Gazprom and RusGazDobycha. GCC will be managed by Baltic Chemical Complex LLC. CJSC “RusGazDobicha” was formed by the “National Chemical Group”.
It is worth noting that earlier, Gazprom considered the possibility of building a Baltic LNG plant in the Leningrad region at about the same cost. The project partner was supposed to be Shell. Answering the question about the possibility of participation of this company in the project, B. Anisimov stressed that he was not authorized to comment on it, proposing to follow the official reports of Gazprom in the coming months.
June 20, 2019
April 3, 2019