The Russian Far East will see a new complex that will turn hydrocarbons into polymers, granules used to make plastic products.
The future Sibur site in Russia.
Sibur/Twitter
Russian petrochemical leader Sibur on Tuesday launched preliminary work on a gigantic petrochemical plant in the Amur region of the Russian Far East, built in partnership with China.
A first concrete block was slowly driven into the ground of a virgin expanse beaten by the wind in Svobodnyy, an industrial town 150 km north-east of Blagoveshchensk, on the Amur river, from where one sees, on the other side, China and its buildings with colored neon lights.
This new plant, which should be completed in 2024, represents an investment estimated at 10-11 billion dollars, made in a joint venture between Sibur (60%) and the Chinese giant Sinopec (40%), also a shareholder of Sibur.
Prime Minister Mikhail Michoustine, on tour in the Russian Far East, greeted by videoconference from Blagoveshchensk a project that would create “thousands of jobs” and “economic growth”. Work will begin after receipt of building permits, expected this fall.
This new plant will transform products obtained during the extraction of hydrocarbons into polymers, granules used to manufacture plastic products, which are in great demand around the world, and particularly in China.
Large-scale projects in the region
The Far East is the site of several large-scale projects materializing Moscow’s desire for greater economic cooperation with China. The Sibur plant will thus be supplied by a gigantic Gazprom plant also under construction in Svobodnyy, itself connected to the Power of Siberia gas pipeline, inaugurated at the end of 2019 in Blagoveshchensk and which delivers natural gas to China.
In its new factory named Amur GCC, Sibur aims to produce 2.7 tonnes per year of polymers – thus doubling its production – three quarters of which should be absorbed by China. Sibur expects an annual increase of more than 6% in Chinese demand for polymers. The factory, which should eventually employ a thousand people, will accommodate up to 30,000 during its construction. One of the partners on the site will be the German Linde.
Sibur is thus launching its second giant polymer factory project after ZapSibNeftekhim, in Tobolsk, in Western Siberia, more oriented towards Europe.
The group is reducing the share of hydrocarbons in its activities. For 15 years, he has invested 1000 billion rubles (11.4 billion EUR at the current price) in chemicals, which offers better margins.
In view of the unfavorable economic climate, the IPO mentioned for several years is no longer mentioned. The project remains relevant for the future.
–
