MOSCOW (MRC) -- Lukoil plans in early August to stop the petrochemical complex Karpatneftekhim (Ukraine) for scheduled turnaround. Together with the scheduled turnaround the company aims to make total overhaul of some production, as per MRC analysts.
Lukoil Group in the first week of August plans to stop on the turnaround its petrochemical complex in Ukraine. Petrochemical complex Karpatneftekhim (Kalush, Ivano-Frankivsk region) consists of ethylene production (capacity of 300,000 tonnes), production of high-density polyethylene (capacity of 100,000 tonnes per year), production of suspension PVC (capacity of 300,000 tonnes per year), and caustic soda (200,000 tonnes per year).
The 30 days preventive maintenance will involve the overhaul of ethylene production. The company management did not exclude that the duration of the shutdown may be prolonged, and it will also depend upon the state's position in relation to the company. According to CEO of Karpatneftekhim, the company suffers from non repayment of VAT from the government and the import duties on oil and gas feedstock for ethylene production. The company also incurs losses from cheap imports of suspension PVC to Ukraine, including the material from North American producers.
Last fall, a group of Ukrainian deputies have submitted to Parliament a bill to impose a 5% duty on the import of unmixed PVC to Ukraine. In mid-May, after the first reading the amendments were adopted, and 5% duties were imposed on imports of unmixed PVC. Further it has not moved. Nothing changed after that.
Following the results of 2011, Karpatneftekhim produced about 102,700 tonnes of HDPE and 83,800 tonnes of suspension PVC. Over the first six months of 2012, these figures amounted to 54,900 tonnes and 92,700 tonnes, respectively.
MRC