11 – 12 April 2019  |   Moscow, Russia

Six petrochemical projects in Russia and the CIS that you need know about

Posted by GBC on 13-02-2019

The article was written in preparation for the region’s largest petrochemical conference, CIS Petrochemicals. The event will take place for the seventh consecutive year on 11th – 12th April 2019 in the Four Seasons, Moscow


  • Owner: Rusgasdobycha
  • Production: Ethan, Propane, Butane, Gas Condensate including olefins
  • Capacity: To be estimated
  • Stage: a feasibility study
  • Estimated investment: $20 bln


  • Owner: Tatneft
  • Production: Maleic anhydride, polypropylene, acrylonitrile, carbon fiber
  • Stage: a feasibility study
  • Estimated cost: $1 bln
  • Attending the conference


  • Owner: Lukoil
  • Production: Urea, polyethylene, polypropylene
  • Capacity: 1,8 million tonnes / year
  • Stage: final investment decision is taken
  • Estimated cost: $2 bln
  • Attending the conference


  • Owner: KazMunayGas
  • Production: Polypropylene, polyethylene, butadiene
  • Stage: EPC contractor selected
  • Estimated cost: $8,5 bln
  • Attending the conference


  • Owner: Irkutsk Oil Company
  • Production: Ethylene, polyethylene
  • Stage: EPC contractor and licensors selected
  • Estimated cost: $2 bln
  • Attending the conference


  • Owner: Sibur
  • Production: Ethylene, polyethylene
  • Stage: FEED
  • Estimated cost: $7,5 bln
  • Attending the conference

Interested in meeting these and other petchem project owners in Russia and the CIS?

Globuc looked at the upcoming plans of the top petrochemical companies in the CIS region and found six of the most ambitious projects that you should watch out for in 2019.

Over £40bn in capital expenditure is predicted to be spent over the lifetime of these projects.

Don’t be surprised if you can’t find SIBUR’s ZapSibNeftekhim and Nizhnekamskneftekhim’s olefins complex below. We intentionally overlooked them as they receive plenty of media attention without our help.

1. Rusgazdobycha’s $20bn petrochemical complex

The low-profile Russian gas major, Rusgazdobycha, has partnered up with none other than Gazprom with plans to build a massive petrochemical complex in Ust-Luga near St. Petersburg in Russia.

With the exact parameters yet to be disclosed, the project is said to include a gas processing plant with a capacity of up to 45 bn cubic meters of gas per year (which could make it even bigger than Amur GPP) and a petrochemical plant (up to 1.5 million tons of polyethylene).

The remaining methane is supposed to be delivered for liquefaction to Baltic LNG.

The parties above are now undertaking a feasibility study and finalizing a business case for the project.

Photo source: Rusgasdobycha

2. Tatneft’s new chemical complex in Tatarstan

Another project that remained somewhat out of the public eye is Tatneft’s $1bn chemical complex which the company plans to implement by 2030. The first stage will include the production of maleic anhydride (up to 50K tons), polypropylene (247K tons), acrylonitrile and carbon fiber (10K tons each).

The company expects the total investment in capacity expansions to amount to around $17.5bn (1,162bn rubles) until 2030, including projects in the upstream, refining, chemicals, and biofuels.

Photo source: Tatneft

3. Lukoil’s massive chemical expansion plans in the Caspian

In 2018, Lukoil, Russia’s second largest company (after Gazprom), made a final investment decision for the construction of an integrated chemical complex worth over $2 billion in Budyonnovsk, Russia. With no finalised project configuration yet, the capacity of the new complex could reach 2 million tons per year, aimed at converting natural gas from the North Caspian fields into urea as one of the lines of production. The second stage may include the production of polyethylene and polypropylene.

Lukoil plans to complete the project in five years.

Photo source: Rupec

4. Kazakhstan’s two-stage petrochemical complex in Atyrau region

Kazakhstan’s flagship chemical project (which has notoriously been dragging on since 2011) has recently been kick-started and revitalised. In June 2018, the project management was handed over to KazMunayGas under the guidance of Daniyar Tiesov’s team (a team with experience of completing a massive revamp project of three refineries in Kazakhstan).

These changes seem to have breathed new life into the project, with some serious progress already evident: the EPC contractor was selected, debt financing raised and the issues with the feedstock supply resolved. The first phase of the project, which involves 500 thousand tons of polypropylene production, will cost around $2 billion. Completion date is 2021.

The second stage will include polyethylene and butadiene production with a capacity of 1.25 million tons worth $6.5 billion. Austria’s chemical giant, Borealis, is a new partner in the project. Kazakhstan’s United Chemical Company and Borealis are now undertaking a feasibility study of the project.

5. Irkutsk Oil Company’s greenfield ethylene-polyethylene plant

The largest oil company in Russia’s Siberia, Irkutsk Oil Company, is well on the way to constructing a new petrochemical plant in Eastern Siberia worth over $2 billion. Irkutsk Polymer Plant will have a capacity of 650,000 tons/year of ethylene and 650,000 tons/year of polyethylene.

The company has already let a contract to Toyo Engineering, while Lummus Technology and Univation Technologies are the chosen technology providers for the project.

The company is also considering the monetisation of methane from its stranded gas fields by producing electricity for local cryptocurrency mining companies.

Irkutsk Oil Company expects that the plant in Ust-Kutsky district will be completed by 2023.

Photo source: Irkutsk Oil Company

6. Sibur’s $7.5bn Amur Chemical Complex

In the heart of Russia’s Siberia the country’s petrochemical giant, Sibur is working on a project to construct Amur GCC with a capacity of 1.5 mtpa of ethylene to be further transformed into polyethylene grades.

The pre-design development stage of Amur GCC is now over, with the project’s configuration and set-up and capacity of the ethylene and polyethylene units approved. The decision on the project implementation is subject to completion of the FEED and clearance of SIBUR’s relevant corporate procedures, which will not be taking place until the second half of 2019.

Sibur reckons it could start production after 2024 and add 50 percent output to its production.

Disclaimer: to the best of our knowledge, the information contained herein is accurate as of the date of publication; however, we do not assume any liability for the accuracy and completeness of the above information.