InterviewRussia petchems to grow on proximity to China

20 November 2009 21:28  [Source: ICIS news]

By Ben DuBose

HOUSTON (ICIS news)--Russia’s proximity to cheaper feedstocks and the growing end-market of China should increase petrochemical investment in the area within the next five years, executives with US engineering and construction firm Fluor said on Friday.

In particular, Russia offers an opportunity to construction firms because there is hardly any integration between refineries and petrochemical facilities, said Peter Oosterveer, group president of Fluor’s energy and chemicals division.

However, the exact date of that window of opportunity is unclear because of the immense damage the global financial crisis did to the country’s economy.

“Being optimistic, we could see a return to economic growth in 2011,” Oosterveer said. “They really were hit harder than almost anywhere else.”

At that point, the company said it expects substantial growth in the country and a flood of interest from producers as competition for Middle East natural gas supplies intensifies.

Fluor provides engineering, procurement and construction (EPC) services for chemical and other industrial companies.

In 2007, Fluor was picked by Russia’s oil major Tatneft to manage the construction of its $5.6bn (€3.8bn) petrochemical complex in Nizhnekamsk.

Since then, Fluor has also made “substantial inroads” into projects and discussions with major producer Sibur, Oosterveer said, adding that those factors make Fluor well positioned for when the country returns to economic growth during the next decade.

To discuss issues facing the chemical industry go to ICIS connect


By: Ben DuBose
+1 713 525 2653



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index