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FAS Russia approves transfer of Gazprom neftekhim Salavt to the management of RusGazDobycha

August 05/2021

MOSCOW (MRC) -- The Federal Antimonopoly Service (FAS) of Russia has approved the transfer of Gazprom neftekhim Salavat (GNS), one of the largest oil refining and petrochemical production complexes in the Russian Federation, to the management of RusGazDobyche, reported the Agency for Oil and Gas Information with reference to the head of RusGazDobycha Konstantin Makhov's statement.

He reminded that RusGazDobycha's subsidiary, Ruskhimalliance, which is the operator of the gas processing plant (GPP) of Gazprom and RusGazDobycha in Ust-Luga, had recently signed an agreement to manage GNS.

"We have received the approval of the FAS, now we are solving the last issues there, which, ... I think, we will resolve in the next few days. But in fact, we are already at "Salavat". We are already working, interacting with the management, with the plant, conducting an audit ", - K. Makhov reported on the status of the transaction.

He also added that RusGazDobycha signed a preliminary agreement with Gazprom to supply an additional 28 billion cubic meters of ethane-containing gas to Gazprom neftekhim Salavat. RusGazDobycha wants to modernize the plant, fully load its capacities, and also build a gas processing plant there so that the total capacity is comparable to the Amur gas processing plant.

Thus, the Amur GPP of Gazprom will produce 38 billion cubic meters of commercial gas for supplies to China, up to 60 million cubic meters of helium, 2.4 million tons of ethane, about 1 million tons of propane, as well as 0.5 million tons of butane and 0.2 million tons pentane-hexane fraction. It is expected to reach full capacity uitilisation in 2025.

Earlier it was noted that last year Gazprom neftekhim Salavat increased the depth of oil refining to 91.9%. Amid restrictive measures and measures to prevent the spread of a new coronavirus infection in 2020, Gazprom neftekhim Salavat's employees ensured the operation of facilities in a normal mode and fulfilled the production plan.

As MRC reported previously, GNS resumed its low density polyethylene (LDPE) production on 10 August, 2020, after scheduled maintenance works. The outage lasted slightly longer than originally planned. LDPE production capacities were shut for the turnaround on 1 July. Meanwhile, from 1 July, 2020, a one-week maintenance was also carried out at Gazprom neftekhim Salavat's high density polyethylene (HDPE) production capacities.

This year, according to ICIS-MRC Price report, Gazprom neftekhim Salavat shut its LDPE and HDPE production capacities for scheduled repairs on 20 July. The outage will be quite long and will last for 30 days. The plants' production capacities are 45,000 and 120,000 tonnes per year, respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,40 tonnes in the first five months of 2021, which virtually corresponds to the same figure a year earlier. HDPE shipments decreased.

Gazprom neftekhim Salavat is a subsidiary of Gazprom. The plant was founded in 1948 as Integrated Plant No. 18. Since 1999, the state block of shares in Salavatnefteorgsintez was in trust management of Gazprom, and in 2008 the specialized holding Gazprom Pererabotka became the owner of the controlling stake in the plant. OAO "Gazprom neftekhim Salavat" (formerly OAO "Salavatnefteorgsintez") is one of the leading petrochemical companies in Russia, carrying out a full cycle of processing hydrocarbon material. The list of products manufactured by the plant includes more than 140 items, including 76 grades of the main products: gasoline, diesel fuel, kerosene, fuel oil, toluene, solvent, liquefied gases, benzene, styrene, ethylbenzene, butyl alcohols, phthalic anhydride and plasticizers, polyethylene, polystyrenes, silica gels and zeolite catalysts, corrosion inhibitors, elemental sulfur, ammonia and urea, glycols and amines, a wide range of household products made of plastics, surfactants and much more.
Author:Margaret Volkova
Tags:PE, LDPE, HDPE, gas processing, petrochemistry, Gazprom, Gazprom neftekhim Salavat, RusGazDobicha, Amurskiy GPZ, Russia.
Category:General News
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