Russia to up ethylene output 6 times to 14.2 mil mt/year by 2030
Dated- 22 Mar , 2012 - Russia
Russia expects to raise ethylene output to 14.2 million mt/year by 2030 compared with 2.4 million mt in 2010, the country's energy ministry said in a statement Thursday, revealing details of the finalized development plan for the petrochemical industry.
To reach the target, Russia's ethylene capacity has to increase 4.8 times, it said.
Russia's share in global monomer production may reach 5.6% in 2030 compared with 1.6% in 2010, it said.
Over 60% of light hydrocarbons will undergo deep processing compared with 30.8% in 2010, according to the plan.
The plan has already received approval of the Russian government, a spokesman for the ministry said in an interview.
The document is also in line with the long-term plans for development of Russia's oil and gas industries, the statement said.
Enhancement of chemical production capacities is needed to match domestic consumption as the existing facilities have reached output limits, the statement said.
"Growth of Russia's polymere production over the past three years exceeded the GDP increase, which stood at around 4% on the year. As a result, the existing production capacities reached limits of their growth," the statement said.
The energy ministry expects the state to support the petrochemical industry by regulating export duties for LPG and naphtha, and developing transportation infrastructure, it said, providing no further details.
In March, Russia set its LPG export duty at $157.3/mt, and naphtha export duty at $370.10/mt. The duties are reviewed monthly by the finance ministry and approved by the government.
The plan also foresees the setup of six petrochemical hubs across Russia: in West Siberia, the Volga region, the Caspian region, the northwestern region, East Siberia and the Far East, the ministry said, reiterating earlier statements.
Last year, construction of petrochemical facilities started in five of the six clusters, the energy ministry said in late January, naming projects belonging to Sibur and Gazprom among the most significant.
Project details for five more major facilities are being worked out and equipment for the plants was being bought, the ministry said at the time, providing no further details.
In June 2011, deputy energy minister Sergei Kudryashov said each of the new clusters would have a production capacity of no less than 1 million mt/year of ethylene by 2020.
At the time, Kudryashov estimated that total investments in the six clusters would reach Rb650 billion ($21.4 billion) in the near future, providing no exact investment time frame.