Gazprom plans €3.5 bn to invest in polymers production

Gazprom plans €3.5 bn to invest in polymers production
Russian petrochemicals producer Gazprom Neftekhim Salavat (GNS) plans to invest € 3.5 bn in a petrochemicals expansion at its site in Salavat, Bashkortostan, Russia.

The project, which involves upgrading existing facilities and building new plants, will centre on a 1.4m tonne/year cracker. Downstream production will include polyethylene (PE), polypropylene (PP), polystyrene (PS), propylene oxide (PO), monoethylene glycol (MEG), benzene and ethyl benzene (EB). The existing 300,000 tonne/year ethylene capacities will be expanded step-by-step to reach the target rate by 2022.

The first phase of the project, known as the All-Russian Gas Chemistry Centre, will involve expanding ethylene capacity by 80,000 tonnes/year to 380,000 tonnes/year and high density polyethylene (HDPE) capacity by 80,000 tonnes/year to 200,000 tonnes/year, Shavaleev said.

GNS, which is controlled by subsidiaries of Russia’s Gazprom, said it expects to complete phase one of the project by 2015.

Phase two will include investments in ethylene, propylene, HDPE, PP, ethylene oxide (EO), MEG, alpha olefins, benzene and butadiene.

Gazprom will act as the guaranteed feedstock supplier.