No strong increase expected for Russia OX imports to EU despite rouble
Rhian O'connor
16-Dec-2014
Focus article by Rhian O’Connor
LONDON (ICIS)–Imports of orthoxylene (OX)
from Russia are not expected to increase materially despite a
weaker rouble and lower oil prices, sources said on
Tuesday.
Russia has significant capacity including the two biggest
plants in Europe at Omsk Refinery and Ufaneftekhim, both with
165,000 tonnes a year.
|
Company |
Country |
Location |
Capacity |
|
Omsk Refinery |
Russia |
Omsk |
165000 |
|
Ufaneftekhim |
Russia |
Ufa |
165000 |
|
ExxonMobil Chemical Holland |
Netherlands |
Botlek |
130000 |
|
Total Petrochemicals France |
France |
Gonfreville |
110000 |
|
Versalis |
Italy |
Sarroch |
100000 |
|
BP Refining & Petrochemicals (BPRP) |
Germany |
Gelsenkirchen |
70000 |
|
Kirishinefteorsintez – (Kinef) |
Russia |
Kirishi |
65000 |
|
Petkim Petrokimya Holding |
Turkey |
Aliaga |
65000 |
|
Shell & DEA Oil GmbH – (SDO) |
Germany |
Wesseling |
60000 |
|
Galp Chemical |
Portugal |
Oporto |
45000 |
|
Compania Espanola de Petroleos – (CEPSA) |
Spain |
Algeciras |
40000 |
|
PCK Raffinerie |
Germany |
Schwedt |
40000 |
|
Polski Koncern Naftowy Orlen (PKN) |
Poland |
Wloclawek |
40000 |
|
Hungarian Oil and Gas (MOL) |
Hungary |
Szazhalombatta |
35000 |
|
Naftan |
Belarus |
Novopolotsk |
25000 |
|
Lukoil Neftochim Burgas |
Bulgaria |
Burgas |
20000 |
|
Gazprom Neftekhim Salavat |
Russia |
Salavat |
15000 |
|
Klesch & Co |
Germany |
Heide |
15000 |
|
Polski Koncern Naftowy Orlen (PKN) |
Poland |
Plock |
10000 |
|
Slovnaft |
Slovakia |
Bratislava |
9000 |
Source: ICIS plants and projects
As a result Russia is a structural importer of OX into
Western Europe, and has been for a number of years.
“The option is there to purchase material and they are
offering – I can confirm this. They have not invaded the
market, but their presence is more and more [noticeable],”
said an OX producer.
The Russia rouble has weakened substantially, which should
lead to even more product coming into the region.
Source:
xe.com
“On paper they have a better netback,” said an OX
buyer.
However, a number of factors are seen as limiting the actual
volumes imported. These include availability, which is driven
in part by political factors.
“If they want to sell, that’s the question,” said a
trader/importer.
“Supply from Russia is limited at the moment. For political
reasons they want to limit exports,” said a buyer.
In addition logistical concerns always make transport
difficult.
“Logistically they still have difficulties, it’s not so easy
for them to reach the European Union,” said the
producer.
In addition, the relationship between Russian manufacturers
and Western buyers is more distant.
“They don’t sell directly. There is always a trader in
between. Contract business is still focused on Western
Europe,” said the buyer.
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