SIBUR Petrochemical polyolefins Russia Amur

SIBUR Petrochemical polyolefins Russia

The design capacities of SIBUR AGHK can increase to 2.3 million tons of PE and 400 thousand tons of PP per year

SIBUR Petrochemical polyolefins Russia

MOSCOW – SIBUR, the largest petrochemical holding in Russia and Eastern Europe, plans to expand the design capacities of the Amur Gas Chemical Complex (AGHK) for the production of polyolefins, if Gazprom will additionally supply a total of 1.5 million tons of LPG and ethane fraction to AGHK, said In an interview with Oil and Capital, a member of the board is Sergey Komyshan, Executive Director of SIBUR LLC.

Gazprom is a supplier of raw materials to the Amur MCC.SIBUR Petrochemical polyolefins Russia

“We signed a contract for the supply of about 2 million tons of ethane fraction per year. It is also assumed under the terms of the preliminary agreement that Gazprom will annually supply an additional 1.5 million tons of LPG and ethane fraction.

This important agreement opens up opportunities for us to expand the AGHK’s design capacity with 1.5 million tons of polyethylene to about 2.3 million tons of polyethylene and 400 thousand tons of polypropylene per year, “he said.SIBUR Petrochemical polyolefins Russia

Earlier, SIBUR planned to build an agrochemical complex for ethane processing, production of monomers and subsequent production of polyethylene of grades in demand on the Russian and world markets with a capacity of about 1.5 million tons per year.

It was also reported that SIBUR planned to make an investment decision on the construction of the AGHK by the end of 2019. The Amur Mining and Chemical Combine will be technologically connected with the project of the Amur Gas Processing Plant Gazprom. In May 2018, the parties signed an agreement on ethane supplies from the AGPZ to the AGHK. SIBUR Petrochemical polyolefins Russia

The document fixes the volumes of shipment of the ethane fraction (about 2 million tons per year), as well as the formula for the price of commodity products, the responsibility of the parties for stable supplies and reception of raw materials.

The preliminary cost of the AGHK project is estimated at USD7-9 billion. With the adoption of a positive decision on the project, SIBUR is ready to start construction immediately. In this case, the complex can be launched in 2024. A land plot for construction has already been determined, geographically it is located next to the Amur Gas Processing Plant under construction.SIBUR Petrochemical polyolefins Russia

As reported by Market Report, in February of this year, the German company Linde signed a contact for the provision of design and construction services for a part of SIBUR AGHK. Services will be provided as part of a consortium with NIPIgaz, part of SIBUR.

According to ScanPlast of Market Report, the estimated PE consumption in Russia amounted to 1,904.41 thousand tons in the eleven months of last year, which is 6% more than the same indicator a year earlier. SIBUR Petrochemical polyolefins Russia

Deliveries of all types of polyethylene increased. PE supplies increased both from Russian manufacturers and from external suppliers. The estimated consumption of PP in the Russian market in January – November 2019 amounted to 1,161.83 thousand tons, which is 7% more than in 2018. Deliveries of all types of propylene polymers increased, the largest increase was recorded in the segment of propylene homopolymer (PP-homo).

SIBUR Holding PJSC is the largest petrochemical company in Russia and Eastern Europe with full coverage of the industry cycle from gas processing, production of monomers, plastics and synthetic rubbers to plastics processing. SIBUR Petrochemical polyolefins Russia

Author: Margarita Volkova

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