MOSCOW (MRC) -- SIBUR launches construction of ZapSibNeftekhim,a facility for deep hydrocarbon to polyolefin processing, on 17 February 2015, said the company in its press release.
ZapSibNeftekhim's project is designed to operate a steam cracker (by Linde AG, Germany) with a capacity of 1.5 mtpa of ethylene, around 500 ktpa of propylene and 100 ktpa of butane-butylene fraction (BBF), along with units with a total capacity to produce 1.5 mtpa of various grades of polyethylene (by INEOS, UK) and a polypropylene unit of 500 ktpa (by LyondellBasell, Netherlands).
The project is aimed at developing SIBUR’s deep processing operations, focussed on significant volumes of oil and gas exploration by-products in West Siberia, including associated petroleum gas, and import substitution of those polymers highest in demand on the Russian market.
ZapSibNeftekhim will be located on the Tobolsk production site where the Tobolsk-Neftekhim and Tobolsk-Polymer facilities are already operating. Tobolsk-Neftekhim's gas fractionation capacity has been significantly expanded specifically for the project. A raw NGL pipeline has been constructed between the Purovsky Gas Condensate Processing Plant and Tobolsk-Neftekhim, and the private Denisovka station on the Sverdlov Railway has doubled its carrying capacity.
Previously total investment in the ZapSibNeftekhim project has been estimated at approximately USD 9.5 bn, including expenditure incurred and costs budgeted for commissioning, production site infrastructure development and other activities.
Dmitry Konov, CEO of SIBUR, said: "ZapSibNeftekhim is SIBUR's key investment project. We have purposefully slowed down our project investment programme in the current economic environment to avoid the risk of significant shifts in the schedule in the future. Flexible schedule ensures that the Company can maintain financial stability in a changing economic environment, and guarantees completion of the project."
SIBUR is a vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and is a leader in the Russian petrochemicals industry. SIBUR operates 26 production sites in various regions of Russia. The Group employs 26,000 people. The Company sells its products to over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide.