MOSCOW (MRC) -- The accident at Gazprom's Urengoy condensate preparation plant on 5 August might lead to a reduction in liquefied petroleum gases (LPG) production in Russia by about 15% and, as a result, to lower supply of feedstock for the production of LPG at ZapSibNeftekhim (part of SIBUR), the largest polymer production plant in the Russian Federation, reported Kommersant, citing experts' estimates.
Ethane is extracted from the condensate at the plant, after which the condensate is sent to the Surgut plant for stabilization (feedstock capacity - 12 mln tons per year), where lighter fractions - LPG and NGLs - are isolated from the feedstock.
As Anna Lishnevetskaya from Petromarket notes, if the Surgut plant completely stops, this will lead to a 12% decrease in the supply of feedstock for the production of LPG to the largest petrochemical complex in Russia - ZapSibNeftekhim. SIBUR told Kommersant that they are waiting for an estimate of the planned volumes of supplies from partners and that it is too early to make forecasts.
“In any case, we will strive to prevent a reduction in domestic sales and unloading of petrochemical plants,” they stressed. Also, Gazprom neftekhim Salavat (GNS, part of Gazprom) and TAIF will be deprived of some of the raw materials for the production of petroleum products.
As a result of the fire, one of the two deethanization lines of the Urengoy plant was apparently seriously damaged, and the second line was shut as a precaution. Gazprom Pererabotka announced on 8 August that condensate supplies to the Urengoy plant resumed from 7 August, without specifying the quantities. According to Kommersant's interlocutors, at best, the current capacity of the Urengoy plant will be cut by half.
As reported earlier, on 22 June, 2021, ZapSibNeftekhim produced 2 mln tonnes of polyethylene (PE) since the start of the plant. The complex's products are also shipped throughout Russia, to the CIS countries and Europe, Turkey and China. The Tobolsk plant produces 24 grades of PE used for the production of polymer films, packaging, blown containers, tubular products, and it is gradually replacing imported polymers in the domestic market, while increasing exports.
As MRC informed before, after the launch of ZapSibNeftekhim, SIBUR tripled its polymer capacities, Mikhail Karisalov, General Director of the company, said in December last year. Zapsibneftekhim was launched at full capacity on 1 December, 2020. M. Karisalov said the main result of the launch of ZapSibNeftekhim is the completion of SIBUR's transformation into a world-class petrochemical company.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
ZapSibNeftekhim is SIBUR's largest project, the construction of which was completed in May 2019. After reaching its design capacity, it became the largest modern petrochemical complex in Russia. The project is the plant for the production of various PE grades (1.5 mln tonnes) and PP grades (500,000 tonnes). The budget of the complex is USD8.8 bln.
MRC