Russian Petrochemical Market Intelligence

Prices, Production, Domestic Sales & Trade

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Benzene, including refineries, petrochemical & coal

Butanols, normal an iso

C4s merchant & imports

Methanol, including all producers

Paraxylene

Phenol

Propylene, refineries & petrochemical plants

Styrene

Toluene, refineries & coal

Russian petrochemical investments 2015

The climate for investments into the petrochemical industry in Russia in 2015 may not be able to avoid the side-effects of foreign policy, and it seems inevitable that progress in certain projects will be affected.  Even before 2014 the main olefin projects were moving slower than might be expected in other countries.  Oil prices directly do not harm projects, but they impact significantly on the Russian economy whilst sanctions tend to cause difficulties in various areas such as raising finance, importing equipment, etc. 

The President of Tatarstan has highlighted that the impact of the devalued currency will mean that the cost of investment in chemical projects will grow by around 30-40%, and that projects themselves facing a possible disruption.  Proposals were made to the Ministry of Industry to lobby government for subsidies for priority projects.  Due to concerns over the economy Nizhnekamskneftekhim has already delayed construction plans for its one million ton cracker from a 2017 start-up to after 2020, whilst Rosneft is making very slow progress on its flagship refinery and petrochemical complex (VNKH) in the Russian Far East.  SIBUR is the sole company is proceeding with its million ton cracker project at Tobolsk but even these plans are not expected to be completed until 2019. 

Possible progress may be seen this year regarding gas processing facilities in the Amur and Irkutsk regions, laying the platform for petrochemical plants, whilst Lukoil also hopes to complete part of the gas processing investments at Budyennovsk.  Regarding the Volga-Urals region efforts are still underway examining the viability of constructing the Yamal-Volga NGL pipeline, to meet the demands principally of the petrochemical industry in Tatarstan and Bashkortostan, although this represents a long term plan.  In the Samara region SANORS, now owned by Rosneft, has completed modernisation of the gas processing facilities at Novokuibyshevsk which allows it to move to the next stage involving olefins.