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Sibur ramps up ZapSibNefteKhim plant to full capacity

December 02/2020

MOSCOW (MRC) -- Sibur, Russiaís top petrochemicals company, has ramped up its ZapSibNefteKhim plant in western Siberia to full capacity, signaling a shift in supplies of LPG away from Europe as more products are sold to Asia, said the company.

Sibur signed a deal in June to sell up to 1 million tons of polyethylene a year to Chinaís Sinopec from ZapSibNefteKhim, which uses LPG as a feedstock. The Russian company, one of the biggest petrochemical companies in the world, has been gradually cutting LPG exports to Europe as it boosts ZapSibNefteKhimís capacity.

In addition to oil, natural and super-cooled gas, Russia is increasing petrochemicals sales to China as it pivots away from Western markets amid growing tensions. Privately-owned Sibur said ZapSibNefteKhim was now capable of delivering over 2.2 million tons of petrochemicals a year, mostly polyethylene and polypropylene.

At a televised meeting at the plant in Tobolsk, Russian president Vladimir Putin said global demand for the petrochemicals would grow by almost 4% a year, compared with just 1% for oil over the next five years. He pledged state help for the industry.

Sergey Komyshan, Siburís executive director for marketing and sales, told reporters that ZapSibNefteKhim was exporting around 75% of its total petrochemicals output to China and Europe, leaving the remaining 25% for its home market.

In total, Sibur plans to export as much as 1.5 million tons of petrochemicals from the plant per year by 2025, worth up to 100 billion roubles (USD1.3 billion), the company said. Over time, Sibur also plans to increase supplies of polyethylene and polypropylene to the Russian market, Komyshan said.

As MRC informed earlier, Sibur (Moscow, Russia) has awarded Univation Technologies a contract to supply its Unipol polyethylene (PE) process technology for Siburís USD10-billion Amur gas-chemicals complex (AGCC) being built in Russiaís Far East. Sibur, Russiaís largest integrated petrochemical company, says it has selected Univationís licensed process for three 600,000-metric tons/year PE lines at Amur. The lines will be part of the integrated project, located near Svobodny in the Amur region close to Russiaís border with China, which will have a total polyolefin design capacity of 2.7 million metric tons/year.

As per MRC's ScanPlast, September PE production in Russia was 233,200 tonnes, whereas this figure was 258,700 tonnes a month earlier, in the first month of autumn several producers stopped their capacities for repairs at once. Thus, overall PE output reached 2,204,200 tonnes in January-September 2020, compared to  1,349,000 tonnes a year earlier. Production of all PE grades rose, but LLDPE accounted for the greatest increase, which was provided by ZapSibNeftekhim.
Author:Anna Larionova
Tags:PP, PE, ZapSibNeftekhim, Sibur Tobolsk, Sibur Holding.
Category:General News
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