New market study, "Russia Petrochemicals Report Q2 2011", has been published

March 24, 2011 - PRLog -- Russian petrochemicals production growth will be led by Sibur's expansion in 2011, with the company planning a 14% y-o-y rise in output, to 18.8mn tonnes, according to BMI's latest Russia Petrochemicals Report.

Sibur has approved investment of RUB73.4bn in 2011, up 25.5% y-o-y, which should support an increase in plastic output this year, assisted by a recovery in the market. Sibur believes that large rises in capacity should increase its polymers output 26%, to 747,000 tonnes, in 2011. The company plans to add 1mn tpa of polymers capacity in the next few years, which will include the establishment of new petrochemical hubs, as indicated by the Russian government. New alliances with foreign petrochemicals companies include an extended memorandum of understanding (MoU) with India's Reliance Industries Ltd (RIL). A planned JV between Sibur, Dow Chemical and Gazprom is still some years from completion, with officials not expecting it to come onstream before 2016-2017.

Projects include a 500,000tpa propane dehydrogenation and PP facility and a 1mn tpa ethylene plant at Tobolsk, a 330,000tpa PVC complex at Kstovo being built by RusVinyl, a JV between Sibur and SolVin, and an expansion of the 100,000tpa NPP Neftekhimia PP plant at Moscow that Sibur recently acquired a 50% stake in. Sibur is expanding PS capacity with a 50,000tpa PS line due onstream at Perm at end-2011 and a second identical line to follow. It is also building a 50,000tpa styrene butadiene plant at Voronezh. However, the new olefins complex at Tobolsk will require a new pipeline connection as will proposed hubs in places in the Far East, such as Vladivostok, so these facilities are contingent on further infrastructural development.

The proposed Tobolsk cracker would represent a departure in terms of feedstock, relying on LPG and ethane instead of naphtha. This is in line with the government's policy of cracking lighter feedstock, including associated gas. It would be Sibur's second cracker at Tobolsk; the existing plant has capacity for 220,000tpa ethylene. It would also be Sibur's largest cracker, with the two other cracker facilities at Kstovo and Perm possessing 220,000tpa and 60,000tpa of ethylene capacity respectively. The PVC complex at Kstovo, due to come onstream in 2013, will require further expansion of ethylene capacity.

With a petrochemicals rating of 58.9 points, Russia's commanding position in our petrochemicals ratings for Central and Eastern Europe (CEE) was eroded by a poor country risk profile in 2010, but in the past two quarters has been recovering. Despite holding around one-third of the combined polymer production capacity of the 10 countries surveyed, and providing the large bulk of regional cracker capacity expansion in the next five years, Russia lags behind EU members in terms of the structure of the economy. The main weakness for investment in the petrochemicals sector is the absence of an industrial policy and a legislative framework aimed at overhauling the chemicals sector. There is also a lack of foreign investment and its associated operational and management expertise, which could limit the prospects for growth. Russia is 0.5 points ahead of Poland in BMI's CEE Petrochemicals Ratings.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/127252_russia_petrochemicals_r...


Report Table of Contents:

Executive Summary
- Russia Chemicals And Petrochemicals Industry SWOT
- Russia Political SWOT
- Russia Economic SWOT
- Russia Business Environment SWOT
Global Overview
- Petrochemicals Market Overview
- Financial Results
- Table: Financial Results Of Major Petrochemicals Companies, 2009
- Global Oil Products Price Outlook
- Table: Oil Product Price Assumptions, Q410-Q411 (US$/bbl)
- Table: Oil Product Price Data And Forecasts, 2008-2015 (US$/bbl)
European Petrochemicals Overview
- Table: Financial Results Of European Petrochemicals Producers, Q110 (EURmn)
Russia Market Overview
- Petrochemicals Trade
- Market Structure
- Table: Russia's Cracker Capacity, 2009-2015 ('000 tpa)
- Foreign Investment
Business Environment
- Petrochemicals Business Environment Ratings
- Table: Central And Eastern Europe Petrochemicals Business Environment Ratings
- Russia's Foreign Investment Policy
- Foreign Trade Regime
- Tariffs/Non-Tariff Barriers
- Tax Regime
Industry Trends And Developments
- Upstream
- Olefins And Aromatics
- Polymers
Industry Forecast Scenario
- Table: Russia's Petrochemicals Sector, 2008-2015
- Macroeconomic Outlook
- Table: Russia - Economic Activity, 2006-2015
Company Monitor
- Lukoil
- Nizhnekamskneftekhim (NKNK)
- Salavatnefteorgsintez
- Sibur Holding
Glossary Of Terms
- Table: Glossary Of Petrochemicals Terms
BMI Methodology
- How We Generate Our Industry Forecasts
- Chemicals And Petrochemicals Industry
- Cross Checks
- Business Environment Ratings
- Table: Petrochemicals Business Environment Indicators And Rationale
- Weighting
- Table: Weighting Of Indicators

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

# # #

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.