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Alexey Ivanov, Head of Lukoil’s Production, Optimization and Coordination Department, has said that according to the company’s plans its polypropylene facilities at the Stavrolen plant, standing idle since a fire broke out in February 2014, should resume production in Q1 2015. The exact date will be determined nearer to the end of the year. Mr. Ivanov provided no detail regarding the cost of the repair effort at the plant. In a previous voicing of its plans, Lukoil said production should resume as early as in January 2015. The plant has been technologically prepared to produce polypropylene from (propylene) feedstock brought from outside since June 2014.

LLC Baltic Gas Chemical Company (BGCC) has completed a preliminary geological survey of a Leningrad Oblast site where it supposes to build a methanol production complex. The proposed construction site will take up an area of 55 hectares in the eastern part of the Ust-Luga industrial zone. Selection of this particular site is favored by its nearness to federal and regional highways and its convenient location relative to power supply facilities. Leningrad Oblast Government has already granted its preliminary approval to the project. Gazprom and Novatek have in their turn confirmed their readiness to allocate requisite portions of their gas outputs to it. The future facilities will have an estimated production capacity of 1.7 mn tonnes of methanol per year, their annual natural gas consumption estimated at 1.5 bn cubic meters. The company plans to launch the complex in Q1 2018. The project also calls for the construction of a […]

Tatarstan government officials and representatives of major firms based in the region have met at a session of the Republic’s Economic Council to discuss steps aimed at supporting Tatarstan’s industry. Tatarstan’s President pointed out in his opening speech that the Republic spent more than RUB 160 bn last year on products brought from abroad, with almost a third of the sum expended on petrochemical products. An additional RUB 200 bn per year is being spent on buying products in other regions of the Russian Federation (RF), with the list of purchases composed mainly of mechanical engineering goods, transport vehicles and food items. In Tatarstan itself, business output totaled just over RUB 1.5 trillion in 2013, including intangible products (services and trade operations). “Tatarstan’s import substitution potential is most prominent in two fields, the machine building and the chemical industry. The region’s machinery imports currently amount to over $4 bn per […]

According to Bloomberg, OJSC Eurochem intends to get ahead of the potash market leader Uralkali by 2019 thanks to the anticipated launch of two currently developed potash deposits. “We expect both mines to start production by the end of 2017,” said Clark Bailey, Eurochem’s Mining Director, in an interview to the agency. It will take up to two years after that to start exporting potash abroad, said he. The mines currently under construction, one located at the Verkhnekamskoe deposit in the Perm Krai, the other at the Gremyachinskoe deposit in the Volgograd Oblast, are being built in two stages to yield an annual combined output of 8.3 mn tonnes of potash. “Our project boasts a lower cost of construction per tonne of potash capacity than is needed to get a return on investment,” said Mr. Bailey. “Considering the fact that we have a port terminal on the Black Sea, we […]

National Chemical Group has plans to launch the construction of an industrial production complex near the port of Vostochny in the next few months. A statement to that effect was made by the company’s CEO Nikolay Sabitov during a meeting in Yakutsk chaired by Russian President Vladimir Putin and devoted to the provision of state support to investment projects and advanced development territories in the country’s Far East. “At this stage, we’ve completed pre-project planning, selected a site located near the port of Vostochny, and are ready to commence the actual construction effort in the next few months,” said Mr. Sabitov, according to the records of the meeting. The first stage of the complex will be able to produce 1 mn tonnes of commercial-grade ammonia, 2 mn tonnes of urea and 1 mn tonnes of methanol per year. It will consume 3.2 bn cubic meters of natural gas per year. […]

A joint meeting, the latest in a series, has taken place at the grounds of OJSC Gazprom. Presiding at the event were Gazprom’s Management Committee Chairman Alexey Miller and the Chairman of the Executive Board of LLC MC Rusnano Anatoly Chubais. The parties discussed the adoption and use of innovative products at Gazprom’s facilities. The participants have agreed to build two pilot sections of pipeline out of composite materials.  The first will be a 90-km reserve branch supplying gas to the towns of Salekhard, Labytnangi and the settlement of Kharp in the Yamalo-Nenets Autonomous Okrug. According to the plan, the stretch will be constructed using 300, 700 and 1000 mm diameter pipes designed to operate at a pressure of 7.5 MPa. The second is a 14-km reserve underwater branch crossing the river Ob at a location in the Khanty–Mansi Autonomous Okrug and serving as a part of the Yamburg-Tula-2 trunk […]

According to Rosstat, in the first 7 months of 2014 Russia’s output of finished polymer goods increased by 9.6% in comparison with the same period a year ago. There was a significant growth of production figures in July, and this affected the bottom-line value. While amounting to 8.6% when calculated for H1, y/y increase in production reaches as high as 9.6% when assessed for the first 7 months of the year. In January through June, a total of 302.6 thousand tonnes of pipes, hoses and fittings were produced, marking a 10.3% increase y/y. In the month of July the output of these items increased to 56 thousand tonnes from the June mark of 48.7 thousand tonnes, due to a seasonal growth in demand. The output of non-reinforced and single-layer films in the period under report amounted to 611.7 thousand tonnes, marking a y/y increase of 26.2%. Film production hit 112 […]

The holding company Sibur is looking into the possibility of building in the Tyumen Oblast of Russia a base polymer production complex named ZapSibNeftekhim, with a planned output capacity of up to 2 mn tonnes/year. The ZapSibNeftekhim complex could become the largest integrated complex ever built in the Tyumen Oblast in the Russian petrochemical industry’s history, with the project calling for the construction of crackers as well as polypropylene and polyethylene production units. The designs allow for the production of up to 1.5 mn tonnes of polyethylene and up to 0.5 mn tonnes of polypropylene per year. “Sibur is still looking into the feasibility of the project and should an investment decision be made, the company will communicate it to the general public in a separate statement,” said a company representative to ITAR TASS, a news agency.

In the first 7 months of 2014 (January through July), sales of foreign-made polyethylene terephthalate (PET) on the Russian market grew by 35% y/y. A total of 143 thousand tonnes of PET was imported during the period, writes Market Report. The increase is seen as the result of competitive price pressure from China. PET producers of the People’s Republic managed to sell 98 thousand tonnes to Russia in H1, virtually doubling the previous-year figure. In the month of July, sales of China-made reached 21% of Russia’s total foreign PET intake, leading to a decline of PET shipments from South Korea. In the current situation, the weakening of the ruble against the US dollar is making foreign products more expensive. With this fact in mind, Russian producers have grounds to expect the lowering of demand for foreign-made competitively-priced feedstock in the second half of the year. To cite one example, in […]