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Construction of the Amur GPP is ahead of schedule

CIS PETROCHEMICALS

Construction of the Amur GPP is ahead of schedule

The construction of the Amur Gas Processing plant is going ahead of schedule, with completion scheduled for 2024 - Pavel Lyakhovich, managing director of Sibur announced to TASS in an interview at the 6th Eastern Economic Forum - TASS

Lyakhovich noted that the Amur Gas Chemical Complex is considered to be a mega-project by the company, and it will also be noticeable on the global market. The Complex is a joint venture between Sibur (60%) and Chinese company Sinopec (40%) to produce polyethylene and polypropylene. The production capacity of the complex will be up to 2.7 million tons of polymers per year, with ethane and liquefied petroleum gas being the main feedstock for processing. It is planned that it will be supplied by the Gazprom plant, which is currently under construction in the Svobodnensky district of the Amur region.

Not only large-scale petrochemistry is important. There are currently projects focused on medium-scale chemistry on our radar. Not so long ago we launched the production of DOTP – the largest capacity in Europe to produce a new environmentally friendly plasticizer. We are currently working on the possibility of expanding this production, bringing even more products to the market. We are also considering production of special plasticizers at our site in Perm.

This year, the company plans to complete the construction of a maleic anhydride plant, which will be able to reach capacity as early as 2022. The project for the facility in Tobolsk with capacity of 45 thousand tons per year was announced at the end of 2018. Maleic anhydride is used in a wide range of industries ¬- construction, agriculture, automotive, paints and varnishes, furniture, pharmaceuticals among others.

Lyakhovich noted that in 2022 Sibur may make an investment decision on a joint project with Sinopec for the production of nitrile butadiene rubbers. An agreement to establish a joint venture with a capacity of 50 thousand tons per year in China was reached in 2019. The share of Sibur's participation will be 40%, and 60% for the Chinese company.

Together with our partners, we have perfected the technology, which can be exported to China. Work was also carried out on selecting the location for the production site. We have now selected this production site and are currently working on the investment project for this site. As soon as it is complete, together with our partner, we will be able to make a decision on construction of the nitrile rubber plant in China

Pavel Lyakhovich, managing director of Sibur

Sibur currently has no plans to work on new projects in India but will consider the possibility of a targeted expansion of existing production in partnership with Reliance Industries. The production of butyl rubber, launched last year, reached its capacity ahead of schedule, and also managed to improve on the consumption norms laid down in the original project.

Honestly, I am personally very proud of this. This is our technology. It is in demand around the world, and it is competitive. 120 thousand tons of butyl rubber is equal to a quarter of the world market. Using our technology, we have built something which provides for a quarter of the world’s market. In my opinion, this is incredible!

Pavel Lyakhovich

Lyakhovich also noted that the company received 57 thousand tons less of hydrocarbon fractions than originally anticipated due to the fire at the Gazprom plant near Novy Urengoy in early August. This meant that the company had to slightly reduce the volume of LPG production. Some of the export volumes were also redirected to the Russian market to meet domestic demand.

I would like to thank Gazprom and Novatek, who managed to find technological solutions to deal with the problem. At the same time, it is difficult to talk about the consequences of the accident in the medium and long term since everything will depend on the pace of restoration of production at the Gazprom plant.

I understand perfectly well that our colleagues from Gazprom are not very keen on making forecasts. The main objective is to restore production as soon as possible, and we are also interested in this, "the top manager of Sibur emphasized.

Pavel Lyakhovich

Speaking about the upcoming deal with TAIF, Lyakhovich noted that the companies’ new projects in the future will create further opportunities for joint development.

Despite the ongoing coronavirus threat, Sibur expects the petrochemical segment of the market to expand in 2021-2022.

For the Russian petrochemical industry, 2020 turned out to be more successful than the previous years due to the commissioning of new capacities. The growth in the volume of Russia’s chemical production in 2020 amounted to 7%, and grew to 8% in the first half of 2021, noted the Managing Director of Sibur.

Concluding the conversation, Mr. Lyakhovich drew attention to the fact that the automotive industry and construction sectors around the world will continue their recovery in 2021-2022. The consumption of petrochemical products has also grown significantly, which gives a reason for optimism.

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