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Russias planned large-scale petrochemical to target the Chinese market

March 12/2010

March 12 (plastemart) -- Based on Russia's plentiful feedstock resources, petrochemical major Sibur is studying the construction of large-scale petrochemical and polymer production as per ICIS. Since domestic demand is limited, the projects would be export-oriented, targeting China primarily.


But building the necessary pipelines to transport the feedstock across huge distances to the cracker locations will be a mammoth task. Russia has the feedstock and capabilities to convert this feedstock into polyolefins at a competitive cost. Transvalgaz is exploring the feasibility of necessary gas processing and feedstock transportation from Western Siberia to North-West Russia.


Sibur is also discussing with Gazprom a cracker project in Russia's Far East region, either in Vladivostok or Khabarovsk. Vladivostok is the preferred location because the port is ice-free.

Russias planned large-scale petrochemical to target the Chinese market

MRC Reference

Sibur Holding is the largest Russian petrochemical group.


 Gazprombank (70% minus 1 share);
 Gazfond (25% plus 1 share);
 5% reserved for option program.


The share in the Russian market in 2008:

 polyethylene - 11.1%;

 polypropylene - 16% (including PP-random - 11.2%);
 ABS - 5.2%;
 PVC - 8.1%.

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