Latest news on Eurasian chemical industry
Russian Methanol Exports 2020 (unit-kilo tons)
|
| Country |
Aug |
Sept |
Oct |
| Belarus |
21.8 |
19.5 |
23.8 |
| Finland |
60.9 |
55.2 |
89.7 |
| Germany |
0.2 |
0.3 |
0.2 |
| Kazakhstan |
2.2 |
3.4 |
3.4 |
| Latvia |
1.4 |
1.0 |
1.3 |
| Lithuania |
8.4 |
9.2 |
8.5 |
| Netherlands |
24.4 |
28.6 |
15.1 |
| Poland |
23 |
18.8 |
26.7 |
| Romania |
5.3 |
3.9 |
0.0 |
| Slovakia |
9.5 |
9.7 |
12.8 |
| Turkey |
2 |
5.8 |
3.2 |
| Ukraine |
3.4 |
5.8 |
5.8 |
| Others |
0 |
0.0 |
4.1 |
| Total |
162.5 |
161.1 |
194.7 |
Russian Methanol Market 2020-to be published in April 2021
Introduction to Russian Methanol Report 2019-2025, publication date 1 February 2021
Russia accounts for about 5% of global methanol production and is an important source of exports in the international marketplace. Prior to the spread of COVID-19 and its economic repercussions a number of large-scale methanol projects were planned for Russia which would have a significant impact on the country’s export capability significantly. Projects already in process such as the 500,000 tpa plants under construction at Shchekinoazot and Nizhnekamskneftekhim may see minor delays, but the deep-sea projects particularly in the north west of Russia may be subject to re-evaluation, potentially lengthy delays and possible cancellation.
This report starts with detailed analysis of the current Russian methanol market in regard to production, exports and domestic sales. Each plant is examined to show where production is sent or used internally. Export destinations are shown for Russian methanol by volume and value, whilst the complications and technicalities concerning logistics, ports and railways are outlined. Finally each outstanding project is analysed with prospects for construction and completion before providing scenarios for Russian methanol capacity up to 2025.
Subscription to this report includes twelve months access to CIREC data on methanol, consisting of monthly updates for production, domestic sales and exports with export destinations.
Latest news on Russian methanol projects 31/12/2020
Shchekinoazot-new methanol based resin plants to be constructed
At the end of December Shchekinoazot signed agreements for the construction of production of concentrated low-met formalin with a capacity of 110,000 tpa, as well as urea-formaldehyde resins and urea-melamine with a capacity of 220,000 tpa. The total amount of investments is about 2.8 billion roubles. The launch of the project will increase exports of non-commodity non-energy products, whilst possibly reducing the volume of methanol exports. In 2021 Shchekinoazot is expected to launch its third methanol unit of 500,000 tpa which raises th company’s total capacity to 1.5 million tpa.
Methanol project in Kharbarovsk Kray faces referendum
MPs of the Ayano-May district of Khabarovsk region insist on holding a local referendum on the project of the Chinese company Sirius Holding to build in the area of the world's largest methanol plant. A significant part of the population of the district, where only 1,800 people live, object to the construction of the large methanol plant because of the likely damage to the ecology of rivers and the arrival of about 6,000 foreign workers.
Under the regional law, a local referendum can be initiated by a district assembly of deputies or the head of the administration. After that, it is necessary to collect signatures of at least 5% of the district's voters and pass them along with the question to the district election committee. If the Electoral Commission finds no irregularities in the questioning (cannot affect the powers and composition of the authorities) and recognizes the signatures as reliable, the assembly of deputies within a month should announce the date of the referendum.
Out of 86 signatures of the Ayano-May district election committee, seven were invalidated or unreliable, the remaining 79 signatures were enough to register the initiative. On 25 December, the electoral commission supported the holding of the referendum by its decision. Now the district council must set a date for its holding.
In the referendum, residents of the district will have to answer the question whether they approve "the implementation of the complex project "Ayan Gas Chemical Park" in the area, including infrastructure facilities.
The agreement on the construction of the world's largest methanol plant was concluded in early September 2019 between China's Sherwood Energy (daughter Sirius Holding) and the Agency for Investment. Gas from the fields of western Yakutia will be used as raw materials. The project involves the construction of an industrial complex 3.5 km from the village of Ayan and the construction of a gas pipeline of 1,200 km and a capacity of 20 billion cubic metres per annum. The estimated cost of the project is 740 billion roubles ($9.960 billion).
Opposition is based on the fact that there is very little infrastrsucture with no roads to facilitatte movement around the area. Moreover the project requires a lot of water and can poison the rivers on which salmon rises. The environmental impact assessment has not yet been carried out, but these are the fears of local people. Risks are possible if not in the process of methanol production itself, then in the construction of the plant and the laying of the pipeline. The latter is likely to affect the local ecosystem and will certainly affect the established life of the traditional peoples of the North. A similar problem was in Yakutia, where the project was eventually cancelled which may be the eventual outcome of this project.
Russian ammonia-urea projects
TOAZ (Togliattiazot) continues construction of the third urea plant with a capacity of 2,200 tons per day. Around 40% of construction work has been completed at the end of 2020. Akron at Novgorod intends to start construction of a new ammonia and urea complex in 2021. In addition to the urea capacity of 1.6 million tpa the complex will be able to sell around 300,000 tpa of ammonia on the merchant market. Ammonia production in Russia is around four times larger than methanol. The bulk of the product is sent for processing into urea, ammonium nitrate and other fertilisers.
Evrokhim has started preparations at Kingisepp for construction of a new plant for production of ammonia with a design capacity of 1.1 million tpa and urea with a design capacity of 1.4 million tpa. The plant is to be constructed in the industrial zone Phosphorite in Kingisepp. The launch of production under the division Evrokhim-North-West-2 is targeted for 2023. VEB.RF together with partner banks will finance the construction of an ammonia and urea plant at Kingisepp.
Metafrax plans to complete the construction of the ammonia-urea-melamine complex in 2021. Construction work will be completed at the end of the third quarter of 2021. The plant capacities include 307,000 tpa, 575,000 tpa of urea and 41,000 tpa of melamine.
Construction work continues at the urea production site with a capacity of 1,500 tons per day for Kuibyshevazot and Tecnimont. The plant’s capacity will be 525,000 tpa or 1,500 tons per day of urea.
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