Russia's Sibur closes in on Tobolsk PP project

04 June 2007 17:36  [Source: ICIS news]

MOSCOW (ICIS news)--Russia's petrochemicals major Sibur, Fluor Corp and Tyumen regional authorities continued to discuss plans for a 900,000 tonne/year polypropylene (PP) plant in Tobolsk, Tyumen regional authorities said on Monday.

Alongside a planned world-scale polyethylene (PE) unit the project would make Sibur subsidiary OOO Tobolsk-Neftekhim Russia’s largest post-Soviet petrochemicals producer.

The country's major gas producing region, Tyumen, would support the $1.5bn project to be completed by 2012, Tyumen regional governor Vladimir Yakushev was quoted as saying in a statement.

In February 2007, Sibur and natural gas producer Novatek signed a framework agreement to form the OOO Tobolsk-Polymer joint venture to build world-scale PP and polyethylene units in Tobolsk.

Sibur would hold a controlling stake in the venture while Novatek would supply gas to the plants.

A final decision on the project's parameters was expected in the second quarter but Sibur spokesman Rashid Nureyev told ICIS news on Monday that negotiations on the venture were continuing.

Last year, Sibur announced plans to build up to 900,000 tonnes/year of new polypropylene and up to 500,000 tonnes/year of polyethylene capacity in Tobolsk.

OOO Tobolsk-Polymer was created to oversee the new projects.

Production facilities were expected to be built at Sibur's subsidiary, Tobolsk-Neftekhim.

($1 = €0.74)

By: Sergei Blagov
+44 20 8652 3214

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