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MOSCOW (MRC) -- Dmitry Konov, Chairman of the Management Board at SIBUR
Holding presented the Amur Gas Chemical Complex (GCC) project to President
Vladimir Putin at the Eastern Economic Forum, as per SIBUR's press
release.
The Amur Gas Chemical Complex (GCC) project is set to build one
of the world's largest gas chemical facilities in the Svobodnensky District of
the Amur Region as part of the Svobodny Priority Development Area (PDA).
Feedstock for the project will be sourced from the Amur Gas Processing Plant
(GPP), which is currently being built by Gazprom to process wet gas from
deposits in Siberia and the Republic of Yakutia and then supply it to China. The
Amur GCC and GPP will be in close proximity to each other and technologically
connected.
SIBUR may implement the project in a basic or extended
configuration. The basis configuration provides for processing of 2 mtpa of
ethane fraction to come from the Amur GPP. It will have a capacity of 1.5 mtpa
of ethylene that could be further transformed into polyethylene grades enjoying
both domestic and global demand. The project will create about 1,000 new
high-tech jobs at the GCC and auxiliary facilities.
The extended
configuration boasts a larger capacity of up to 2.7 mtpa of end products
resulting from an additional 1.5 mtpa of liquefied petroleum gas (LPG) supplied
by the Amur GPP. If the extended option comes to life, the Amur GCC will become
the world's largest producer of polyethylene and polypropylene. The capacity
expansion would create up to 300 additional jobs in the region, boosting overall
fiscal revenues by RUB 4 bn.
As of now, a long-term agreement for the
supply of feedstock (ethane fraction) has been signed with Gazprom and licence
agreements and FEED contracts have been made with the engineering companies. As
the GCC site is being prepared for construction, SIBUR is working on the
project’s extended configuration and holding talks with Gazprom on LPG supplies.
The Company is also expecting a potential decision by the government to
introduce a negative excise tax on LPG that will create equal processing
conditions for various petrochemical resources. The project configuration
decision will be finalised by the end of 2019.
Dmitry Konov, Chairman of
the Management Board at SIBUR Holding: “The Amur GCC project is certain to
attract new technologies to the region boosting social infrastructure
development, while also contributing to high-tech production and promoting
Russia's non-commodity exports. SIBUR has extensive and successful experience
completing major petrochemical projects on time and on budget. Currently, we are
working on pre-commissioning at ZapSibNeftekhim, Russia's largest petrochemical
facility".
The Amur GCC will be built using cutting-edge production and
digital technologies and leveraging advanced solutions of the world's leading
licensors to ensure the facility’s long-term seamless operation, its industrial
and environmental safety and energy efficiency.
Ethylene and propylene
are feedstocks for producing polyethylene (PE) and polyprolypele
(PP).
According to MRC's ScanPlast report,
Russia's estimated PE consumption totalled 1,255,800 tonnes in the first seven
months of 2019, up by 9% year on year. Shipments of all PE grades increased.
Meanwhile, the estimated PP consumption in the Russian market was 796,120 tonnes
in January-July 2019, up by 11% year on year. Shipments of PP block copolymer
and homopolymer PP increased.
SIBUR is the largest integrated
petrochemicals company in Russia. The Group sells its petrochemical products on
the Russian and international markets in two business segments: Olefins &
Polyolefins (polypropylene, polyethylene, BOPP films, etc.) Plastics, Elastomers
& Intermediates (synthetic rubbers, EPS, PET, etc.). SIBUR’s petrochemicals
business utilises mainly own feedstock, which is produced by the Midstream
segment using by-products purchased from oil and gas companies. More than 26,000
employees working in SIBUR contribute to the success of customers engaged in the
chemical, fast moving consumer goods (FMCG), automotive, construction, energy
and other industries in 80 countries worldwide. In 2018, SIBUR reported revenue
of USD 9.1 billion and adjusted EBITDA of USD 3.3 billion. |
