03 January 2011 15:00 [Source: ICIS news]
By Sergei Blagov
MOSCOW (ICIS)--Recently completed projects and extra production capacity will lead to significant changes in ?xml:namespace>
In November 2010,
This is expected to add about 20% to Russia's total HDPE capacity, although Salavatnefteorgsintez produced little more than 20,000 tonnes of HDPE in test mode in 2010.
The country's HDPE sector has suffered supply interruptions and price volatility in recent years, so the extra capacity is expected to have a moderate effect on the market.
The company had previously expected to start the new plant, in
Now the PET plant is set to start full-scale production in 2011, which will nearly double the country's total capacity.
Because of this the Russian PET market is expected to become less dependent on imports, and probably more export-oriented, in 2011.
In November Sibur-Khimprom, a subsidiary of
Despite its relatively modest production volume, Sibur-Khimprom became the country's first plant producing EPS in line with international standards.
The company aims to target the domestic market in 2011, which will reduce imports from Europe and
Sibur had been mulling the idea of a building a new PP plant since 2006, with earlier plans involving a capacity of 900,000 tonnes/year of PP and up to 500,000 tonnes/year of polyethylene (PE) in Tobolsk.
The project now appears to be moving forward, with Sibur beginning imports of heavy equipment for the new PP plant in July 2010.
The planned new plant in Tobolsk, not far from the country's main gas producing areas in w
Although the project is not due to come on stream until 2012, its looming presence appears to have affected the market.
A competing PP project involving a planned 180,000 tonne/year plant in the
On 12 July 2010, Sibur started building a new 330,000 tonne/year PVC plant at Kstovo, in the Nizhny Novgorod region of c
The plant's capacity could eventually be raised up to 500,000 tonnes/year at its second stage.
The plant was previously expected to come on stream in 2010, but Sibur now aims to complete the project in 2012. However, even at its first stage the plant is due to entirely replace PVC imports.
Russian oil companies have also been considering major petrochemical projects.
In December 2010, Lukoil said it could build a new PVC unit in s
Lukoil has long planned to build a new gas-chemical complex in
It would include a gas processing plant and a new 600,000 tonne/year PE production facility at Budyennovsk in
The complex was previously due to be built in 2010, but is now expected on stream in 2016, and full details of what is planned may be released in 2011.
Russian state-controlled gas giant Gazprom has also considered petrochemical projects, including a plant to produce 650,000 tonnes/year of PE and 450,000 tonnes/year of PP in Orenburg region. However, it has now announced that the Orenburg project had been delayed until 2015.
So Russian companies have major plans to boost domestic capacities in 2011 and beyond, and these ambitious moves are set to have a major impact on the market situation in the country.
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