Shurtan Gas Chemical to increase its polymer production capacity

Shurtan Gas Chemical to increase its polymer production capacity

MOSCOW (MRC) - The capacity of the Shurtan Gas Chemical Complex will triple, investments in the expansion project will amount to USD1.8 billion, Oilcapital reports.

Uzbekneftegaz has launched a project to expand the Shurtan gas chemical complex in the Kashkadarya region in the south of the country. "The capacities of the Shurtan gas chemical complex, the firstborn of our gas chemical region, will triple," said President of Uzbekistan Shavkat Mirziyoyev at the ceremony of laying the foundation stone for the expansion project.

The commissioning of additional capacities provides for the construction of polymer production units, as a result of which the production of polyethylene will increase from 125,000 tonnes to 280,000 tonnes, and the production of 100,000 tonnes of polypropylene will also begin. The expansion of capacities is planned due to the involvement of synthetic naphtha from the synthetic fuel plant. The cost of the new stage of modernization of the Shurtan Gas Chemical Complex is estimated at USD1.8 bn.

Enter Engineering Pte Ltd, controlled by Gazprombank, signed an EPC contract to expand the capacity of the Shurtan Gas Chemical Complex. The commissioning of new facilities is expected in 2024.

The annual capacity of the Shurtan Gas Chemical Complex for processing raw gas, according to the company's website, is up to 4 bn cubic meters, natural gas for consumers - up to 3.5 bn cubic meters, polyethylene granules - 125,000 tonnes, liquefied gas - more than 110,000 tonnes, gas condensate - 90,000 tonnes, granular sulfur - 1,000 tonnes.

Earlier it was reported that the Shurtan Gas Chemical Complex will invest USD1.8 bn in expanding the capacity for the production of PE and PP. The project provides for the creation of production up to 430,000 tonnes of polyethylene and up to 280,000 tonnes of polypropylene per year. Chevron Pilliphs Chemical and McDermott have been selected as licensors of the project.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

The Shurtan Gas Chemical Complex was put into operation in 2001 on the basis of the Shurtan gas condensate fields (GCF). The enterprise processes up to 3.9 bcm of feed gas per year. The complex is designed for the production of 150 grades of high, medium and low density linear polyethylene.
MRC

Crude oil prices rise on lower US oil inventories and concerns that rising coronavirus cases might reduce demand

Crude oil prices rise on lower US oil inventories and concerns that rising coronavirus cases might reduce demand

MOSCOW (MRC) -- Oil prices rose on Wednesday, after government data showed US crude and fuel inventories fell last week, offsetting concerns that rising coronavirus cases might reduce demand, reported Reuters.

Brent crude rose 29 cents to settle at USD79.23 a barrel. US West Texas Intermediate (WTI) crude rose 58 cents to settle at USD76.56 a barrel.

In the United States, the average number of daily confirmed coronavirus cases hit a record high of 258,312 over the last seven days, a Reuters tally on Wednesday found. read more

Both oil futures contracts earlier traded at their highest in a month after US government data showed lower oil inventories.

Crude inventories fell by 3.6 million barrels in the last week to 420 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop.

US gasoline stocks fell by 1.5 million barrels over the same period to 222.66 million barrels, compared with analysts' expectations in a Reuters poll for a 0.5 million-barrel rise.

Distillate stockpiles fell by 1.7 million barrels to 122.43 million barrels, versus expectations for a 0.2 million-barrel rise, the EIA data showed.

Oil prices have been underpinned by Ecuador, Libya and Nigeria declaring forces majeures this month on part of their oil production because of maintenance issues and oilfield shutdowns.

Russian Deputy Prime Minister Alexander Novak said that the OPEC+ group of producers has resisted calls from Washington to boost output because it wants to provide the market with clear guidance and not deviate from policy on gradual increases to productions.

Investors are awaiting an OPEC+ meeting on Jan. 4, when the alliance will decide whether to proceed with a planned production increase of 400,000 barrels per day in February.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, EIA said in a monthly report earlier this year, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

Mikhail Karisalov elected Chairman of the Board of Directors of Nizhnekamskneftekhim

MOSCOW (MRC) - Nizhnekamskneftekhim (NKNH, part of SIBUR Holding) held an extraordinary meeting of shareholders of PJSC "Nizhnekamskneftekhim" on December 27, at which shareholders elected members of the Board of Directors in a new composition, said the company.

According to the decision of the Board of Directors, Mikhail Karisalov was elected Chairman of the Board of Directors of PJSC Nizhnekamskneftekhim, Airat Safin - Deputy Chairman of the Board of Directors of PJSC Nizhnekamskneftekhim.

SIBUR completed the purchase of TAIF in October 2021 and continues to merge the oil and gas chemical businesses of the companies.

Nizhnekamskneftekhim's revenue for nine months of 2021 amounted to Rb181.8 bn. - against Rb102.4 bn in the same period last year, which is 77.5% more. Gross profit more than doubled to Rb52 bn, which is Rb 27.5 bn more than in the nine months of 2020 (Rb24.5 bn).

Profit from sales for nine months increased to 38.1 bn rubles. - against 13.3 bn in 2020. Net profit increased to a record 33.6 bn rubles, in the pandemic year 2020 for nine months the company suffered a loss of 2.3 bn rubles.

The enterprise is carrying out technical re-equipment of the production of halobutyl rubbers up to 200 thousand tons per year, construction of the production of ethylbenzene and styrene with a capacity of 250 thousand tons per year, polypropylene 400 thousand tons per year and polystyrene with a capacity of 250 thousand tons per year.
MRC

Seven representatives of SIBUR joined the new board of directors of Kazanorgsintez

Seven representatives of SIBUR joined the new board of directors of Kazanorgsintez

MOSCOW (MRC) - The new board of directors of Kazanorgsintez includes seven representatives of SIBUR, Realnoe Vremya reports.

In total, the shareholders elected ten people.

On behalf of SIBUR, the Board of Directors of Kazanorgsintez includes: Igor Klimov, Managing Director for Production Efficiency at SIBUR; Sergey Komyshan, Executive Director for Marketing and Sales of SIBUR; Pavel Lyakhovich, Managing Director of the Basic Polymers Directorate of SIBUR; Marina Medvedeva, Managing Director for Business Processes at SIBUR; Alexey Shakhov, Director of Government Relations, SIBUR Holding; General Director of TAIF Ruslan Shigabutdinov; General Director of Kazanorgsintez Farid Minigulov.

In addition to them, the following were elected to the new board of directors of Kazanorgsintez: Sergei Alekseev, First Deputy General Director of Svyazinvestneftekhim JSC; Assistant to the President of Tatarstan Renat Galiev;
Minister of Economy of Tatarstan Midkhat Shagiakhmetov.

In October, SIBUR closed the deal to acquire 100% of TAIF JSC, which includes Nizhnekamskneftekhim, Kazanorgsintez and TGK-16.

Earlier it was reported that Kazanorgsintez (TAIF Group) in 2022 will complete the modernization of equipment for the production of polycarbonates, which will allow reaching the design capacity of 100,000 tonnes per year.

According to MRC's ScanPlast, the total consumption of PC granulate in Russia in January-October 2021 (excluding imports and exports to Belarus) decreased by 15% and amounted to 67,300 tonnes against 79,500 tonnes in the same period a year earlier.

PJSC Kazanorgsintez is one of the largest enterprises in the Russian Federation (PJSC TAIF Group of Companies). It produces 40% of all Russian polyethylene and is its largest exporter. Currently, PE, polycarbonate (PC), polyethylene pipes, phenol, acetone, bisphenol A are produced. KOS is the only Russian PC manufacturer. There are 170 types of products in total.
MRC

Biaxplen summed up the results of the year

Biaxplen summed up the results of the year

MOSCOW (MRC) - Biaxplen (part of SIBUR Holding) discussed the results of the year with clients, the company said in a statement.

During the meeting, the following topics were discussed: the state of the BOPP market in 2021 and the forecast of its development in 2022, the current state and future of customer service, the results of a customer satisfaction survey, changes in the company's trade policy and logistics, innovations in packaging, and much more. The meeting was attended by representatives of more than 30 companies of Biaxplen's clients and partners from Russia and the CIS countries.

The first part of the round table was devoted to changes in the polymer market and the forecast of its development. Georgy Martirosyan, Senior Marketing Manager of the Basic Polymers Directorate of SIBUR, in his speech described the change in the situation on the Russian FMCG product sales market over the past 3 years: a 4-fold increase in the share of discounters, a simplification of assortment and structures in flexible packaging, an increase in e-com sales in 2 times under the influence of a pandemic.

The main trends that will affect the packaging industry in the coming years are the demand for packaged products, a decrease in the costs of manufacturing packaging and supplying goods, the popularity of reusable packaging solutions, lighter portion packaging, the rapid growth of on-line trade and delivery, the preference for recyclable and recycled packaging solutions, increasing consumption of flexible packaging in the world.

Earlier it was reported that Biaxplen upgraded the extrusion lines produced by the German Bruckner, designed for the production of biaxially oriented films (BOPP films).

Earlier it was reported that in July Biaxplen developed a metallized film of the HBV.M brand, which has high barrier properties. The new brand will be produced at the Kursk plant Biaxplena. The production capacity will be 500 tons per year. The production launch of the film is scheduled for the second half of 2021.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.

All five Biaxplen factories are certified according to the quality management system ISO 9001. The group's total BOPP film production capacity is over 160 thousand tons per year. The company is actively developing export supplies of films to the EU market.

Biaxplen is a subsidiary of the SIBUR petrochemical holding, the leader of BOPP in Russia. Production capacity - 180 thousand tons per year, 8 high-speed lines. Brand assortment - over 40 types. Production sites are located in five regions. The products are exported to 27 countries.
MRC