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Construction and modernisation plants

Ethane-to-polymer production plant, Irkutsk Oil Company

Within the 3rd phase of gas project development (2018-2022), Irkutsk Oil Company (IOC) plans the initiation of polymer plant construction. Plant’s capacity will amount to 650k tonnes of polyolefins per annum. In September 2018 the company concluded an agreement with Toyo Engineering (Japan) on plant construction. Lummus was selected as a licensor of a pyrolysis process. Project development also

involves world’s major technology licensors, such as Linde (Germany), Technip (France), CB&I (USA). Project development timeframe is 4 years. Plant’s projected capacity is up to 600k tonnes/y of polyethylene of high and low pressure. The feedstock for production is ethane produced in the IOC’s fields.

Russia’s first production of paraform, Metafrax

In February 2019, Metafrax and GEA signed a contract on the development of a project and delivery of equipment for a paraform production unit (paraformaldehyde) on the premises of a Metafrax site in the city of Gubakha. Project investment is estimated at 5,2bn RUB. To develop the project the company intends to use own and loan capital. Project payback period is approximately 8 years. Once commissioned, Metafrax’s production unit will become the sole producer of paraform in Russia. Unit’s capacity will amount 30k tonnes per annum. The timeframe of project’s investment phase is 3 years. The commissioning is scheduled for the second half of 2021. Besides, the investment project provides for the construction of a unit producing formaldehyde in a volume of 180k tonnes per annum. Paraform production will be integrated with the units producing formalin and pentaerythritol. To mitigate the environmental impact, the technology includes a catalytic oxidiser unit for deactivation of off-gases. Liquid wastes from the unit will be used as a feedstock for pentaerythritol production.

Ethylene complex, Nizhnekamskneftehim

In early June 2017, TAIF and Linde AG signed a memorandum which determined the main areas of activities before 2025. The memo’s initial phase was the basic agreement on design and commissioning of the first phase of Nizhnekamskneftehim ethylene complex, which is a part of TAIF Group. The first phase of the complex provides the capacity of 1200k tonnes of ethylene – new EP-1200 production facility. Project development will comprise 4 phases – the next phases encompass 600k tonnes of ethylene per annum and adjacent units releasing high-margin polymers with ethylene used as feedstock. The parties agreed that Linde would support TAIF in further development of the 2nd, 3rd, and 4th phase to release petrochemicals with high value added. In late May 2018, Nizhnekamskneftehim concluded a long-term loan agreement to be covered with Euler Hermes certificate of insurance, valued at 807 million euro. The loan fund is aimed to service the contract with Linde AG on the construction of a new ethylene complex. The creditor is a consortium of 5 banks. This consortium is represented mainly by Germany and organised by Deutsche Bank AG. The completion of construction and the commissioning of EP-1200 is scheduled for 2023. This will enable to double the production of ethylene to 1,8m tonnes, to triple the production of polymers, and to reach the production of rubber in a volume of at least 1 million tonnes.

Ethylene and propylene production complex, Gazprom neftehim Salavat

In September 2018, Gazprom neftehim Salavat and Wison Engineering (China) concluded MoC within the project for construction of a complex for processing natural gas into ethylene and propylene and further release of polyolefins. Project investment could reach several billions of dollars; construction timeframe – about three years. Once the complex is commissioned, the company will release additional 416k tonnes of polyethylene and 617k tonnes of polypropylene per annum. The Chinese party will be attracted for engineering design. Russian companies are considered to become contractors for executing construction and installation works.

Ethylene unit, Sayanskhimplast

Sayankhimplast plans to develop a project on the construction of ethylene production unit with the capacity of 200 k tonnes per year and the opportunity for further expansion. In March 2018, negotiations with TechnipFMC took place, then the companies signed the agreement on design and investment feasibility. To date ethylene is supplied by Angarsk Polymer Plant (Rosneft) by the formula pricing system. The project will allow to establish own production. There will be several phases of project development. Gas processing complex construction has been started. Kovytka field commercial commissioning is necessary for the full project implementation. Gas condensate from the field will become the feedstock for ethylene production. Design completion is planned for 2019-2020. Construction completion is expected in 2020-2024.

PETF Manufacturing Plant, Polyester Plant Ivanovo

Projected production capacities are 175k tonnes of polyester fibre, and 30k tonnes of textile PETF granulate per annum. Plant’s construction cost was estimated at 20 billion RUB. General supplier of technologies and main project equipment is Uhde Inventa-Fischer GmbH, EPC-contractor is UNIS. In late 2019, project operator – Polyester Plant Ivanovo – announced changing project’s location from the Ivanovo region to the Bashkortostan Republic. Now the search of a construction site is afoot.

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