Sibur Holdings to Build Worldscale Polypropylene Plant

Russian's petrochemical group of companies, Sibur Holding is planning for a worldscale polypropylene plant which will also become the biggest polypropylene complex in Russia.

The plant will utilize German's technology company, Linde for building the PP plant. The polypropylene plant will have a nameplate capacity of 500,000 tpa capacity.

The PP chemical plant will be located in Tobolsk in the Tyumen region, Russia.

Improving Economy Boosting Oil Demand

The International Energy Agency had revised its forecast for world oil demand on improved Asian economic activity however most likely will still be offset by countries like Russia who are pumping more crude than the added rise in consumption.

The agency which is based in Paris revised the forecast to 83.94 million barrels a day. The world is still having a huge reserve of oil supply with non-Organization of Petroleum Exporting Countries producing more supply than previously expected. Russia, the world's biggest oil producer churns out a total of 360,000 barrels a day as new fields being developed in Western Siberia and enhanced oil recovery techniques are used to squeeze out more hydrocarbons from existing fields.

Despite current projection, some analysts think Russia will pump around 9.7-9.8 million barrels a day on average this year rather than 10.07 million barrels a day as expected by the IEA with global crude demand to rise 1.6% next year outpacing non-OPEC supply growth of about 1% in 2010.

Countries like the U.S which is the biggest consumer for oil and energy has 8 days higher average on its inventory which stands at 61.7 days this year. China has indicated a move to follow the same lead.

Georgian Ports Reopened

Following the geopolitical tense between Georgia and Russia, the Georgian port of Poti was partially closed and reopened again recently. Earlier, Russia had effectively shut down Georgia’s largest commercial port with warships patrolling around 15km outside the port.

Vessels trade was halted although some routes are operating as usual such as the Poti and and Tblisi route. The disruption had caused severe financial impacts on petrochemicals and crude oil vessels.

New Russion Pipe Makers JV with Sumitomo and Sekisui

Japan’s conglomerate Sumitomo Corp and chemical producer Sekisui Chemical are planning to form a joint venture with Russia’s water company Vodokanalstroy (VSK) to form LLC Sumi-Lon. Sumi-Lon will be producing reinforcement plastic pipes.

The company's first unit has a capacity of producing 3,000 tonnes/year of plastic pipes, which was expected to start commercial production by the end of December 2008 with additional total capacity of 15,000 tonnes/year by the end of March 2012

Another $570 Million Investment by Russia Eurochem

200 will mark another Eurochem, a Russian fertilizer producer plan to invest $570 million to upgrade its existing production facilities and building new units including a new 50,000 tonnes/year melamine facility at Azot, Nevinnomyssk.

The chemical plant which costs $277m using Germany's Lurgi process technology, is due on-stream in 2011. Overall, Eurochem is expecting an increase in its Azot, Novomoskovsk urea capacity by 25% to 2,000 tonnes/day as part of Eurochem's vision to conquer the Russian market.

Russia's Sakhalin plans methanol, ammonia plants

New methanol and ammonia production facilities are planned to be built in Russia's Sakhalin region. Feedstock for the methanol and ammonia complex would come from natural gas deposits in northern Sakhalin.

This is shortafter announcement that Russia's Yakutiya region plans to build two facilities for $1 billion to produce 450,000 tonnes/year of methanol and 200,000 tonnes/year of ammonia by 2012.

Russia's New Aromatics Unit

Kazakhstan's Atyrau Refinery company is planning to build an aromatics production unit in Atyrau, Russia due to be on stream in 2012. The aromatics unit estimated at $800 million would have a capacity of 500,000 tonnes/year of paraxylene (PX) and 130,000 tonnes/year of benzene situated in the new $5.2bn petrochemicals hub in Atyrau.

The petchem hub has the capability to produce 800,000 tonnes/year for polyethylene (PE) and 400,000 tonnes/year for polypropylene (PP).

Sibur Polypropylene Using INEOS Technology

INEOS has been selected for a contract to provide 200,000 tonne/year Polypropylene plant in southwest Siberia process technology for Sibur's proposed plant in Tomsk, Russia. The construction is expected to start commissioning in 2012.

This will be Sibur's second polypropylene plant using INEOS process technology. Previously, Sibur used INEOS’ Innovene polypropylene process technology for a proposed 500,000 tonne/year PP plant at Tobolsk, Russia.

Russia's Schekinoazot Methanol Upgrade

Russia's Schekinoazot plans to spend as much as $230 million to upgrade its methanol production facilities to build a new unit to produce 450,000 tonnes/year of methanol.

The unit is planned to be built in the Tula region, south of Moscow replacing existing 370,000 tonne/year methanol facility utilizing Denmark's Haldor Topsoe technology.

Russia Polyurethane Project By Dow, Dipol & JSC Nord JV

Dow Chemicals (Europe) together with Dow Izolan, Dow's Russian joint venture, Dipol Chemical and JSC Nord are set to explore the possibility of producing rigid polyurethane (PU) in Russia with production will be sold to JSC Nord’s Polyurethane Unit for 6000 tonnes in 2008.

The group of companies are looking at the economic feasibility of the Joint-venture PU project expected to be completed by end of 2008. The main driving force to build the PU unit in Russia, despite political instability is that Asian competition is skyrocketing, coupled with the weak US dollar.

The JV hopes that products will be focused to Russian's home appliance companis for cost saving with the polyurethane producers.

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Sibur and Evonik on Discussion for Propylene Oxide Plant

Propylene oxide facility (PO) using Evonik and Uhde, a german engineering firm is on discussion for Evonik Industries and Russia-based JSC Sibur Holding to undertake a feasibility study on the construction of the chemical plant.

JSC Sibur partnership in the JV most likely is for penetration into the Russian market which may also looking at creating a joint venture to produce hydrogen peroxide to supply the PO plant as well as for applications in the paper and pulp bleaching industry.

300ktpa PET Plant in Russia

A joint-venture between Russia's AK Bars Bank and South Korea's KP Chemical has been set-up to build a new 300 thousand tonnes/year capacity polyethylene terephthalate (PET) plant in Tatarstan, in central Russia. The PET production facility will be built in the special economic zone of Alabuga with investment cost of $149m.

The technology licensors under consideration includes Switzerland's Buhler and Uhde Inventa Fischer and Lurgi Zimmer.

$270 Million Base Oil Investment by Lukoil

2017 will mark another investment expansion by Lukoil which is planning for a $270 million base oils production by first increasing production of group III oils from 24,000 tonnes/year to 50,000 tonnes/year by 2010.

They are also looking at improving quality of Volgograd learning from the success of Lukoil's Perm and Norsi quality improvement. Another Lukoil base oils production facility is in Russia is located at Nizhni Novogorod (Norsi). The Perm facility has produced the first 600 tonnes of brightstock in January 2008 and is on an uptrend to increase production.

New Polyethylene Plant in Russia by Sibur

Sibur Holding, a Russia-based petrochemical company is planning a $9.6m for a pre-feasibility study for a new polyethylene (PE) chemical plant with a capacity of 450,000-500,000 tonnes/year in the country's southern Astrakhan region.

Market Outlook for Russia, Expansion of Petrochemicals

Lets have a look at Russia petchem industry outlook in 2008, the long and short of it.

Currently, Russia is one of the most prominent world leading oil and gas producers due to its high reserve in the country. Russia holds the biggest gas reserve in the world but more than half of its plastics and petrochemical products are imported. 2008 will look into a change in this and potentially become the biggest petrochemical producer in the world.

Russia is planning to raise the overall production of chemicals and petrochemicals by 40% by 2015 at a whopping $163 billion. The plan will comprise of 800 new petrochemical plants expansion and empl0yment