CIREC Database
Russian Chemical Production & Capacity 2019 (unit-kilo tons)

Product

2019 - Production

2019 - Capacity

Acetic Acid

168

156

Acetone

138.3

244.2

Acrylates

95.7

109.2

Acrylonitrile

130

140

Benzene

1346.9

1853.6

Bisphenol A

76

130

Butadiene

280.9

549.2

Caprolactam

359.2

414.4

Cumene

296.4

421.6

Ethylene

2977.9

3422

HDPE

867

1798.2

Isobutanol

106.2

125

Isopropanol

24.1

50

LDPE

641.2

776.8

LLDPE

230.6

120

Methanol

4456.9

4697.7

N-Butanol

156.3

285

Orthoxylene

205

390.4

Paraxylene

261.8

465.2

PET

514.5

640

Pentaerythritol

26.3

20

Phenol

219.5

335

Phthalic Anhydride

98.2

134.8

Polyamide-6

145

213.5

Polyethylene

1530.4

2560

Polypropylene

1396.7

1650

Propylene 

2351.9

2469.9

PTA

104

269.2

PVC

973.3

1320

Styrene

691.1

709.2

Thermoplastic Elastomers

83

85

VCM

1002.4

1272

Russian Ethylene Capacity 2017-2019(unit-kilo tons per annum)

Company/ Location

Group

2017

2018

2019

Angarsk Polymer Plant

Rosneft

300

300

300

Gazprom neftekhim Salavat

Gazprom

340

340

340

Kazanorgsintez

TAIF

640

640

640

Lukoil-Neftekhim

Lukoil

350

350

350

Nizhnekamskneftekhim

TAIF

600

600

600

Novokuibyshevsk Petrochemical Company

Rosneft

182

182

182

SIBUR-Khimprom

SIBUR

44.8

44.8

44.8

SIBUR Kstovo

SIBUR

377.5

430

430

ZapSibNeftekhim

SIBUR

0

0

375

Financial Performance for Major Russian Chemical Companies

Russian Petrochemical Sales, Domestic & Exportsort

  • Russian Petrochemical Domestic Sales

  • Russian Methanol Domestic Sales by Producer

     

    Producer

    Q1 18

    Q2 18

    Q3 18

    Q4 18

    Q1 19

    Q2 19

    Q3 19

    Q4 19

    Azot Nevinnomyssk

    1.9

    1.9

    1.9

    1.9

    8.387

    7.8

    8.94

    10.609

    Azot Novomoskovsk

    12.7

    12.7

    12.7

    12.7

    50.836

    25.912

    40.075

    41.589

    Metafrax

    37.2

    37.2

    37.2

    37.2

    63.168

    64.24

    51.399

    72.529

    Sibmetakhim

    36.5

    36.5

    36.5

    36.5

    103.737

    86.951

    91.471

    97.827

    Tomet

    22.9

    22.9

    22.9

    22.9

    107.851

    93.386

    249.34

    123.5

    Shchekinoazot

    2.2

    2.2

    2.2

    2.2

    29.789

    39.234

    46.545

    49.592

    Ammoni

    2.4

    2.4

    2.4

    2.4

    19.427

    33.246

    24.347

    23.766

    Total

    115.9

    115.9

    115.9

    115.9

    383.195

    350.769

    512.117

    419.412

  • Russian Petrochemical Exports

Poland & Central European Chemical Data

  • Polish Chemical Production to Q1 2021

  • Central European Olefins & Polyolefin Production to Q1 2021

    Contents of CIREC Monthly News, 25 May 2021

    Russian chemical production, Jan-Mar 2021

     

    Russian Chemical Production

    (unit-kilo tons)

    Product

    Jan-Mar 21

    Jan-Mar 20

    Caustic Soda

    329.4

    330.0

    Soda Ash

    874.0

    887.0

    Ethylene

    1,134.2

    1,084.5

    Propylene

    784.8

    694.7

    Benzene

    356.2

    392.0

    Xylenes

    144.0

    120.5

    Styrene

    202.5

    176.3

    Phenol

    64.7

    64.7

    Ammonia

    5,200.0

    5,100.0

    Nitrogen Fertilisers

    2,951.0

    2,854.0

    Phosphate Fertilisers

    1,086.0

    1,075.0

    Potash Fertilisers

    2,737.0

    2,469.0

    Plastics in Bulk

    2,728.0

    2,520.0

    Polyethylene

    897.0

    829.0

    Polystyrene

    146.9

    137.3

    PVC

    278.7

    282.2

    Polypropylene

    532.3

    483.3

    Polyamide

    49.9

    47.1

    Synthetic Rubber

    447.0

    404.0

    Synthetic Fibres

    50.1

    37.2

    Russian chemical production rose 6.7% in the first quarter in 2021 over the same period in 2020, with the largest rise seen in the output of mineral fertilisers.  Ethylene production increased from 1.085 million tons in the first quarter last year to 1.134 million tons this year whilst propylene rose from 694,700 tons to 784,800 tons. 

    The production of polymers increased to 2.728 million tons from 2.520 million tons in January to March 2020 including a rise in polyethylene production from 829,000 tons to 897,000 tons.  More than half of the olefin and polyolefin production in in Russia is undertaken by plants belonging to the SIBUR and TAIF groups which now appear to be on the cusp of a large-scale merger.  If fully undertaken, the transaction should have a significant impact on future production trends and project investment.

    Russian plants produced 447,000 tons of synthetic rubber in the first quarter, which is 10.2% more than in the same period in 2020.  Rubber markets have improved in the first quarter in terms of volume demand although margins remain tight.

    In the base chemical sector Russian ammonia production rose from 5.1 million tons in the first quarter in 2020 to 5.2 million tons in the same period this year.  Caustic soda production amounted to 329,400 tons against 330,000 tons in 2020 whilst soda ash dropped from 887,000 tons to 874,000 tons.  Fertiliser production rose 12% in the first quarter to 6.743 million tons.

    Russian chemical trade, Jan-Mar 2021

    Russian Chemical and Chemical Product Values ($ million)

    Product Category

    Exports Q1 21

    Exports Q1 20

    Imports Q1 21

    Imports Q1 20

    Inorganic chemicals

    729.6

    674.7

    702.9

    683.3

    Organic chemicals

    756.8

    758.3

    1364.0

    1175.4

    Pharmaceuticals

    319.0

    221.1

    3129.9

    1678.7

    Fertilisers

    2094.3

    1483.2

    48.7

    41.3

    Dyes, pigments

    76.1

    81.2

    436.2

    403.2

    Oils and resinoids

    211.7

    264.9

    814.3

    799.0

    Surface-active agents

    140.8

    126.6

    372.5

    351.5

    Glues; enzymes

    13.3

    12.1

    185.0

    168.9

    Explosives

    34.8

    12.1

    6.9

    6.4

    Photographic

    3.4

    3.2

    61.2

    64.5

    Misc. chemicals

    232.2

    246.9

    946.9

    911.2

    Total

    4611.9

    3884.3

    8068.5

    6283.4

    Exports of chemical products from Russia in January-March 2021 increased by 24.8% in value terms, in physical terms by 21.9% compared to the same period last year.  Revenues from fertilisers rose by 29.5% from $1.483 billion to $2.094 billion.  Imports of organic chemicals into Russia rose from $1.175 billion in the first quarter in 2020 to $1.364 billion in 2021 whilst export values of organic chemicals increased slightly from $758.3 million to $758.8 million.

    The share of CIS countries accounted for 14% of Russian chemical exports and the rest of the world accounted for 86%.  As part of Russia’s total export structure, the share of chemical products in the first quarter amounted to 7.5%.  This compares against 6.1% in the same period in 2020.

    Methanol exports from Russia dropped in the first quarter to 483,400 tons against 593,400 tons, with the decline attributed mainly to the lower production by Tomet.  Despite lower volumes methanol prices were higher in the first quarter.  Propylene exports from Russia amounted to 20,700 tons in the first quarter against 16,200 tons in the first three months in 2020.  Lukoil-NNOS reduced export shipments from 12,800 tons to 7,600 tons whilst the Angarsk Polymer Plant shipped 10,300 tons against zero last year.  Propylene exports from Russian producers amounted to 62,900 tons in 2020 against 60,600 tons in 2019, but these shipments could be phased out if Lukoil-NNOS goes ahead with its polypropylene project at the Kstovo refinery. 

    Imports of benzene amounted to 10,100 tons in the first quarter versus 9,500 tons in the same period in 2020.   Shchekinoazot has been the major importer of benzene from Belarus this year due to geographical proximity, whilst Kuibyshevazot is currently importing from Ukraine and Kazakhstan.  Benzene exports from Russia declined from 28,500 tons in the first quarter in 2020 to 13,700 tons in the same period in 2021.  The only oil-based benzene producer to export was Kirishinefteorgsintez which shipped 6,900 tons in the first quarter down from 7,900 tons.  Russian phenol exports were constrained by lower production at Omsk Kaucuk.

    Russian Aggregate Trade in Plastics

    Period

    Exports ktons

    Exports $ mil

    Imports ktons

    Imports $ mil

    Q1 21

    949.5

    1201.4

    897.7

    2480.0

    Q1 20

    598.5

    766.6

    883.0

    2135.6

    *For breakdown of statistics or specific product enquiries please contact us

    Caprolactam and paraxylene are two other organic chemical products where Russian exports are undertaken due to the lack of domestic processing capacity.    For organic chemical imports PTA is the currently the most important product in Russia, followed by MEG and TDI.  MEG imports are almost entirely sourced from Saudi Arabia, of which nearly all is sent to Kaliningrad.

    In the plastics sector Russian exports rose from 598,632 tons in the first quarter in 2020 to 949,498 tons in the same period in 2021.  Values of plastics’ exports rose from $766.638 million to $1201.360 million.  The significant rise in exports of bulk plastics was down almost exclusively to ZapSibNeftekhim and the rise in polyethylene shipments from SIBUR. 

    Outline of SIBUR-TAIF merger

    Main Chemical Assets of SIBUR-TAIF

    Company

    Location

    Kazanorgsintez

    Kazan

    Nizhnekamskneftekhim

    Nizhnekamsk

    SIBUR-Kstovo

    Kstovo

    SIBUR-Khimprom

    Perm

    SIBUR-Tobolsk

    Tobolsk

    Voronezhsintezkaucuk

    Voronezh

    ZapSibNeftekhim

    Tobolsk

    SIBUR and Taif recently announced the start of a merger of the two groups on 23 April 2021 which symbolises possibly the most significant development in the Russian chemical industry for more than twenty years.  The merger, assuming it is approved and goes ahead as envisaged, has represented a possible option for both groups over the past decade.  At present the two groups remain competitors on the domestic market but have considerably less influence in global context.  Taking a broad range of factors into account such as economies of scale, the future direction of oil prices, global competition, etc SIBUR and TAIF have decided to merge largely as a marriage of convenience.   

    The TAIF Group possesses a unique product portfolio and technologies that, together with SIBUR's competencies, will allow the combined company to implement an ambitious growth programme. The combination of assets and professional teams are intended to increase the productivity of leading petrochemical enterprises and significantly strengthen the position of the Russian petrochemical industry in the global market.   

    Share agreements for SIBUR-TAIF merger

    Existing TAIF shareholders will receive a 15% stake in SIBUR Holding in exchange for the transfer of a controlling interest in TAIF’s group of petrochemical and energy companies.  The remaining stake in TAIF can be subsequently purchased by the combined company.  The deal will be closed subject to completion of the relevant corporate procedures and receipt of necessary regulatory approvals.  The principle of the merger envisages that a company will be created on the basis of SIBUR Holding.  The deal is expected to be completed by the end of Q3 2021.

    Background reasons for TAIF joining with SIBUR

    The attraction of the merger from SIBUR’s perspective is fairly straightforward in that gains control of Nizhnekamskneftekhim, the largest and most diverse petrochemical complex in Russia.  From the perspective of TAIF, the start-up of the ZapSibNeftekhim complex at Tobolsk, combined with SIBURs existing plants and other projects, has meant that Tatarstan is starting to lose its dominant position in the domestic chemical industry.  It has forced Tatarstan’s chemical holdings TAIF and Tatneft to examine their own structure and product direction. 

    Kazanorgsintez and Nizhnekamskneftekhim ultimately cannot compete against SIBUR due to its feedstock base and there is a case put forward for higher added value products.  SIBUR is considering the strategic advantage of the Tatar Republic to lie in the orientation towards the production of structural plastics, composite materials, and small-tonnage chemistry.

    Feedstock advantage of SIBUR-TAIF merger

    The proposed merger of SIBUR and TAIF groups is intended to facilitate more efficient distribution of feedstock to ensure full capacity utilisation and further development of the petrochemical cluster in Tatarstan. The new company is expected to continue with funding for TAIF’s approved capex programme and development of the group’s assets, bringing together TAIF’s business management expertise and strength in human capital to all of the combined group’s entities. 

    SIBUR may need to sell assets

    SIBUR may be required to sell a number of assets at the request of Federal Antimonopoly Service (FAS) in order to complete the merger with TAIF.  SIBUR may own types of business that FAS deems inappropriate as part of the combined company.  

    Which assets will be deemed appropriate to offload may depend on an in-depth analysis by the FAS.  In particular, questions could be raised whether the combined ethylene capacity of SIBUR and TAIF of 73% of total Russian capacity would be excessive.   Current ethylene capacity does not include the new 600,000 tpa cracker under construction at Nizhnekamskneftekhim nor the 2.3 million tpa cracker for the Amur Gas Chemical Complex where construction is in the early stages.

    Amur Gas Chemical Complex-logistics of delivery equipment

    The first cargoes to be delivered to the Svobodny site for the construction site of the Amur Gas Chemical Complex are to be delivered this summer involving columns for pyrolysis weighing almost 1500 tons.  In June, the barge will start its journey along the Amur and Zeya rivers.

    Deliveries will be made using a specially designed barge called Tomsk with a capacity of 5,700 tons.  The barge is being built at the Damen Yichang shipyard in China in order to deliver large cargoes along the Amur and Zeya rivers for the Amur Gas Chemical Complex.   Specifications of the barge size include length of 111.75 metres, width of 26 metres and height of 3.8 metres high, with the full capacity 5,700 tons.   The barge is designed so that when transporting heavy columns its precipitation allows one metre for unhindered passage along the fairway of the shallow river Zeya with a guaranteed depth of 1.1 metres.  Also, the barge is equipped with a ballast system for safe passage under bridges if necessary.

    Amur Gas Chemical Complex

    main products

    Product

    Capacity

    Ethylene

    2.3 million tpa

    Polyethylene

    2.3 million tpa

    Polypropylene

    400,000 tpa

     After passing all the necessary tests and certifications in China the barge will go to the port of Masan in South Korea, where a large-capacity cargo will be loaded.  The ship, with its barge and column fixed on it, will go to the Russian port of De-Kastri from where the barge with a column will begin its journey along the rivers Amur and Zeya to the construction site of the Amur Gas Chemical Complex.   It will be delivered to a temporary berth on the 212 kilometre of the river Zeya and unloaded.  Then the barge will go for the next cargo.  The barge will be able to use this route from May until September.  The estimated completion date for construction of the Amur Gas Chemical Complex and start-up work is 2024. 

    Environmental issues in construction of Amur Gas Chemical Complex

    Environmental issues form a kay part in the planning for construction for the Amur Gas Chemical Complex.  Waste-free production technologies are being created which means that almost all the drains generated in the production process will be cleaned up and returned to the technology.  

    The AGCC's design decisions include activities aimed at conserving biodiversity, such as the installation of animal and bird protection devices in the perimeter of the complex, torch-setting devices for the protection of animals and birds, and fish protection devices on the water intake in order to preserve young fish.   The production of its own concrete with an output of 220 cubic metres of concrete solution per hour has already been launched for the AGCC saving on the need to source concrete from other sources.

    Currently, the engineering preparation of this site is being completed, the territory will be fenced, and reinforced concrete slabs will be laid.   The volume of deliveries to the Amur Gas Chemical Complex site will begin to increase starting in June.  In 2021, more than 58,000 tons of cargo for the construction of pyrolysis and polymer plants are being prepared, including 12,300 tons of oversized equipment more than 50 columns.

    A temporary customs control zone has been set up at the construction site of the Amur Gas Chemical Complex.  With the creation of a temporary customs control zone in the Amur Gas Chemical Complex, the equipment needed for the construction of the complex will undergo customs clearance and declaration directly on the territory of the future enterprise. This will reduce the time required by customs operations, which is important for meeting the schedule of construction and installation work.

    Feedstocks Amur Gas Chemical Complex

    Amur Gas Processing Plant

    main products

    Product

    Capacity

    Ethane

    2.5 million tpa

    Propane

    1.0 million tpa

    Butane

    500,000 tpa

    Pentane-hexane

    200,000 tpa

    SIBUR’s Amur Gas Chemical Complex will rely on feedstock arrangements with Gazprom for LPGs and ethane.  Gazprom plans to process 42 billion cubic metres of natural gas at the Amur GPP which will produce 1.5 million tpa of LPGs (1 million tpa of propane and 500,000 tpa of butane), 2.5 million tpa of ethane, 200,000 tpa of pentane-hexane fraction and 60 million cubic metres of helium.  Gazprom is constructing the Amur GPP as part of the infrastructure of the Power of Siberia pipeline, designed to export gas to China.

    Nizhnekamskneftekhim-ethylene project update

    Nizhnekamskneftekhim pyrolysis unit

    main characteristics

    Licensor

    Linde

    Contract management

    Gemont

    Capacity

    Ethylene 600 ktpa including six furnaces

    Capacity

    Propylene 272.8 ktpa

    Naphtha Processing

    1.798,500 million tpa

    Equipment deliveries 2020

    264 units

    The construction process for the new 600,000 tpa ethylene plant at Nizhnekamskneftekhim was stopped for a few weeks in late April following so-called violations.  The government safety body Rostekhnadzor uncovered numerous faults following an unannounced visit to the site in March, culminating in court proceedings against Nizhnekamskneftekhim’s owners TAIF.  Project construction was suspended whilst the court evaluated the findings which could mean some delays on meeting the scheduled dates for completion. 

    Lummus Technology has been awarded a master licensor contract by Nizhnekamskneftekhim to supply the technologies for new ethylbenzene, styrene, ethylene dimerization, and olefins conversion units to be built as part of an expansion of an olefins production facility at Nizhnekamsk.  The contract work scope includes the technology licenses and basic engineering for the new plants.  The units are planned to produce 250,000 tpa of ethylbenzene using EBOne technology, 250,000 tpa of styrene via the Classic SM process, and 150,000 tpa of polymer-grade propylene via olefins metathesis chemistry using ethylene dimerization (DIMER) and olefins conversion technologies (OCT). 

    Nizhnekamskneftekhim-six new furnaces and naphtha

    The installation of six furnaces has begun at the EP-600 plant under construction of Nizhnekamskneftekhim.  The furnaces consist of two radiant sections and one common conversion part.  Five of the high-performance furnaces will be operational with one kept in reserve.  The five furnaces will process up to a total of 226 tons of naphtha per hour.  The installation of pyrolysis furnaces at Nizhnekamsk is expected to take several months.  In addition to the 600,000 tpa of ethylene the new cracker will be able to produce 272,800 tpa of propylene.

    SIBUR financial and production overview Q1 2021

    SIBUR’s financial performance

    (billion roubles)

     

    Q1 21

    Q1 20

    Total Revenues

    173,384

    120,671

    EBITDA margin

    42.0%

     31.0%

    EBITDA by segment

    Olefins and Polyolefins

    36,523

    10,970

    Plastics, Elastomers and Intermediates

    11,673

    2,136

    Midstream

    28,664

    23,491

    Profit for the year

    42,813

    (52,281)

    SIBUR revenues Q1 2021

    SIBUR’s revenue increased in the first quarter by 12.8% to 173.4 billion roubles, up from 153.7 billion roubles in the fourth quarter and 120.7 billion roubles in the first quarter last year.  Revenue in the olefins and polyolefins segment increased by 27.7% to 74.1 billion roubles due mostly to the rise in production at ZapSibNeftekhim, resulting in a sectoral EBITDA of 36.523 billion roubles against 10.970 billion roubles in 2020. 

    SIBUR Feedstock Costs (billion roubles)

    Product

    Q1 21

    % of costs

    Q1 20

    % of costs

    NGLs

    30,000

    66.4%

    15,707

    50.2%

    APG

    7,049

    15.6%

    7,991

    25.5%

    Paraxylene

    2,076

    4.6%

    945

    3.0%

    Benzene

    1,326

    2.9%

    1,108

    3.

    Total feedstock costs

    45,158

    100.0%

    31,309

    100.0%

    SIBUR’s operating costs increased slightly by quarter-on-quarter to 115.6 billion roubles from 113.9 billion roubles in the period October-December 2020.  Higher costs were driven mainly by an increase in feedstock expenses amid higher purchasing volumes of raw NGL and naphtha and higher prices.  Paraxylene costs more than doubled due to higher purchases.

    SIBUR’s operating results Q1 2021

    SIBUR’s Olefins-Polyolefin Production (unit-kilo tons)

    Product

    Q1 21

    Q4 20

    Q1 20

    Polyethylene

    437.3

    414.6

    328.3

    BOPP

    34.8

    39.3

    36.3

    Ethylene

    537.6

    531.7

    443.9

    Propylene

    359.1

    355.6

    280.5

    SIBUR’s Revenues in Olefins-Polyolefins (billion roubles)

    Product

    Q1 21

    Q4 20

    Q1 20

    Polyethylene

    35.996

    27.293

    7.582

    BOPP

    5.271

    4.930

    4.230

    Ethylene

    2.192

    1.772

    1.689

    Other Polymers

    652

    712

    911

    EBITDA

    36.523

    28.253

    10.970

    EBITDA Margin

    42.7%

    41%

    27.1%

    SIBUR increased sales of most of its petrochemical products in the first quarter compared with Q4 2020.  Polypropylene sales in the first quarter increased by 10.3% to 321,000 tons, and polyethylene sales increased by 11% to 434,000 tons.   Sales of plastics and organic synthesis products decreased from 209,000 tpa in Q4 2020 to 203,000 tons.  Sales of elastomers remained unchanged from the previous quarter at 109,000 tons. 

    In Q1 2021, EBITDA in the olefins and polyolefins segment amounted to 36.5 billion roubles, up 29.3% quarter on-quarter and up 232.9% year-on-year.  This growth was mainly due to an increase in polypropylene and polyethylene production at ZapSibNeftekhim.   

    The production of olefins and polyolefins increased by 2.5% as ZapSibNeftekhim reached its design capacity utilisation rate.  External sales of olefins and polyolefins rose 9.1% to 844,500 tons quarter-on-quarter due to increased production volumes and sales of existing stockpiles from ZapSibNeftekhim. Domestic sales increased by 51.4% and amounted to 380,500 tons.   In Q1 2021, SIBUR’s polyethylene and polypropylene segment’s EBITDA amounted to 11.7 billion roubles, 41% higher than in Q4 2020 and more than five times higher than a year earlier.  The midstream segment’s EBITDA increased by 29.1% quarter-on-quarter to 28.7 billion roubles, primarily due to positive price dynamics for LPG and naphtha amid rising oil prices.  As a result, the segment’s EBITDA margin was 39.5%, up 4.3% quarter-on-quarter.

    SIBUR’s Feedstock Production (unit-mil tons)

    Product

    Q1 21

    Q4 20

    Q1 20

    LPG

    1.588

     1.639 

    1.652

    Natural Gas

    4.189

     4.443

    4.988

    Naphtha

    0.342

     0.367 

    0.378

    Crude NGL

    1.173

     1.238 

    1.335

    For petrochemical production SIBUR increased PTA in the first quarter this year to 80,200 tons against 47,300 tons in January to March 2020, whilst butadiene production increased from 55,300 tons to 74,400 tons. 

    SIBUR’s Feedstock Sales (unit-mil tons)

    Product

    Q1 21

    Q4 20

    Q1 20

    LPG

    0.669      

    0.759 

    1026.4

    Natural Gas

    3.964      

    4.252

    4.738

    Naphtha

    0.224      

    0.183

    0.298

    Regarding feedstocks SIBUR’s production of LPGs at the plants in West Siberia totalled 1.588 million tons in the first quarter against 1.652 million tons in the same period in 2020. 

    Russian Ethylene Production (unit-kilo tons)

    Producer

    Jan-Mar 21

    Jan-Mar 20

    Angarsk Polymer Plant

    58.0

    59.5

    Kazanorgsintez

    146.5

    167.0

    Stavrolen

    87.4

    87.3

    Nizhnekamskneftekhim

    161.2

    164.1

    Novokuibyshevsk Petrochemical

    14.4

    17.2

    Gazprom N Salavat

    93.6

    97.8

    SIBUR-Kstovo

    99.9

    112.0

    SIBUR-Khimprom

    22.7

    14.6

    Tomskneftekhim

    73.7

    70.2

    Ufaorgsintez

    20.8

    33.2

    ZapSibNeftekhim

    364.0

    261.6

    Total

    1142.2

    1084.5

    LPG merchant sales by SIBUR dropped from 1.026 million tons in the first quarter last year to 669,100 tons in the first quarter in 2021.  The reduction was due to the higher internal usage at Tobolsk.  ZapSibNeftekhim achieved its full design capacity at the end of 2020 whilst the average utilisation rate over the 12-month period was 82%.   SIBUR’s polyethylene sales increased fivefold to 1.3 million tons; polypropylene sales increased by 51.7% to 1.1 million tons. 

     

    Russian ethylene production, Jan-Mar 2021

    Russian ethylene production totalled 1.142 million tons in the first quarter in 2021 against 1.086 million tons in the same period in 2020.  SIBUR’s group production increased from 443,000 tons to 537,000 tons.  ZapSibNeftekhim produced 364,000 tons in January to March up from 261,600 tons from January to March 2020.  In the first three months in 2021 Nizhnekamskneftekhim produced 161,200 tons against 164,100 tons in the first quarter in 2020 whilst Kazanorgsintez dropped from 167,000 tons to 146,500 tons. 

    Russian Propylene Production (unit-kilo tons)

    Producer

    Jan-Mar 21

    Jan-Mar 20

    Angarsk Polymer Plant

    32.8

    32.7

    Kazanorgsintez

    12.1

    12.9

    Lukoil-NNOS

    49.8

    69.3

    Stavrolen

    34.9

    32.6

    Nizhnekamskneftekhim

    81.0

    80.7

    Novokuibyshevsk Petrochemical

    10.2

    11.4

    Omsk Kaucuk

    3.1

    13.8

    Polyom

    48.6

    47.3

    Gazprom n Salavat

    41.3

    42.3

    SIBUR Kstovo

    45.3

    48.7

    SIBUR-Khimprom

    15.2

    16.4

    Tomskneftekhim

    39.4

    40.3

    Ufaorgsintez

    45.3

    50.3

    ZapSibNeftekhim

    325.7

    196.2

    Total

    784.8

    694.7

    Other important ethylene producers in the first quarter included SIBUR-Kstovo which produced 99,900 tons versus 112,000 tons and Gazprom neftekhim Salavat which produced 93,600 tons against 97,800 tons.  In terms of feedstocks, ZapSibNeftekhim relies on LPGs delivered from the gas processing plants in West Siberia, whilst Kazanorgsintez relies heavily on ethane feedstock supplies from the Orenburg and Minnibayevo gas plants but also needs to purchase other hydrocarbons.   

    Propane supplies are purchased by Kazanorgsintez mostly from Uralorgsintez and SIBUR-Novatek at Tobolsk, usually in volumes of 8-10,000 tons per month. 

    From 11 September to 1 October 2021, Nizhnekamskneftekhim's ethylene plant will undergo repair work.   The production of ethylene, propylene, benzene and some derivatives of these products will be reduced if not stopped during the repair period.

    Russian propylene production, sales and exports, Jan-Mar 2021

    Russian Propylene Domestic Sales (unit-kilo tons)

    Company

    Jan-Mar 21

    Jan-Mar 20

    Angarsk Polymer Plant

    12.8

    21.1

    SIBUR-Kstovo

    36.6

    39.8

    Lukoil-NNOS

    41.7

    42.7

    Others

    3.0

    2.4

    Total

    93.5

    105.0

    Russian propylene production amounted to 784,800 tons in the first three months in 2021 against 694,700 tons in the same period in 2020.  The increase was due largely to the cumulative effect of the start-up of the plant at ZapSibNeftekhim at Tobolsk.   The combined ZapSibNeftekhim and SIBUR Tobolsk plants increased production from 196,200 tons in the first three months in 2020 to 325,700 tons in the same period in 2021.  Overall SIBUR Group production of propylene rose from 280,600 tons to 359,100 tons.    

    In Tatarstan Nizhnekamskneftekhim produced 81,000 tons of propylene in the first quarter against 80,700 tons last year whilst Kazanorgsintez reduced production from 12,900 tons to 12,100 tons.

    Main Russian Propylene Domestic Purchases (unit-kilo tons)

    Consumer

    Jan-Mar 21

    Jan-Mar 20

    Saratovorgsintez

    46.1

    49.4

    Volzhskiy Orgsintez

    3.1

    2.9

    Akrilat

    0.0

    0.4

    SIBUR-Khimprom

    12.0

    13.6

    Omsk-Kaucuk

    0.7

    8.8

    Tomskneftekhim

    0.6

    2.1

    SIBUR Tobolsk

    18.6

    41.0

    Moscow Refinery

    1.2

    2.0

    Novokuibyshevsk Petrochemical

    1.7

    0.0

    Khimprom Kemerovo

    1.2

    0.7

    Plant of Synthetic Alcohol

    5.7

    2.4

    Ufaorgsintez

    3.5

    1.5

    Total

    94.5

    126.6

    In Bashkortostan Gazprom neftekhim Salavat produced 41,300 tons of propylene against 42,300 tons whilst Ufaorgsintez reduced production from 50,300 tons to 45,300 tons.  In the Nizhny Novgorod region SIBUR-Kstovo reduced production of propylene from 48,700 tons to 45,300 tons in January to March 2021, whilst due to maintenance Lukoil-NNOS reduced production from 69,300 tons to 49,800 tons. 

    Russian sales of propylene on the domestic merchant market amounted to 94,500 tons in the first three months in 2021 against 126,600 tons in the same period last year.  Production at ZapSibNeftekhim was consumed internally in the production of polypropylene.  The largest propylene supplier to the domestic market in the first quarter was Lukoil-NNOS, shipping 41,700 tons against 42,700 tons followed by SIBUR-Kstovo which reduced from 39,800 tons to 36,600 tons.   

    Russian Propylene Exports (unit-kilo tons)

    Producer

    Jan-Mar 21

    Jan-Mar 21

    Lukoil-NNOS

    7.6

    12.8

    SIBUR-Kstovo

    2.8

    3.4

    Angarsk Polymer Plant

    10.3

    0.0

    Stavrolen

    0.0

    0.1

    Total

    20.7

    16.2

    Russian Styrene Production (unit-kilo tons)

    Producer

    Jan-Mar 21

    Jan-Mar 20

    Nizhnekamskneftekhim

    80.9

    80.0

    Angarsk Polymer Plant

    11.2

    10.6

    SIBUR-Khimprom

    36.0

    35.2

    Gazprom n Salavat

    52.9

    38.0

    Plastik, Uzlovaya

    21.5

    13.5

    Total

    202.5

    177.3

    SIBUR-Tobolsk reduced merchant propylene purchases from 41,000 tons in January to March 2020 to 18,600 tons in the same period this year.  Saratovorgsintez reduced purchases of merchant propylene from 49,400 tons to 46,100 tons due to lower availability from Lukoil-NNOS.  The Plant of Synthetic Alcohol at Orsk supplements propylene purchases for the production of isopropyl alcohol through the purchase of propane-propylene fractions.

    Propylene exports from Russia amounted to 20,700 tons in the first quarter against 16,200 tons in the first three months in 2020.  Whilst Lukoil-NNOS reduced export shipments from 12,800 tons to 7,600 tons the Angarsk Polymer Plant shipped 10,300 tons against zero last year.  Revenues from propylene exports jumped from $9.3 million in the first quarter to $18.3 million in January to March 2021, most of which came from sales to China from the Angarsk Polymer Plant.

    Russian polyethylene production and trade, Jan-Mar 2021

    Russian HDPE Production (unit-kilo tons)

    Producer

    Jan-Mar 21

    Jan-Mar 20

    Kazanorgsintez

    107.3

    141.0

    Stavrolen

    80.8

    70.0

    Gazprom neftekhim Salavat

    27.6

    33.0

    ZapSibNeftekhim

    290.0

    167.1

    Total

    505.7

    411.1

    In the first three months of 2021 Russian HDPE production totalled 505,800 tons, 15% more than in 2020 when it totalled 439,400 tons.   ZapSibNeftehim increased HDPE production by 48% to 290,000 tons, whilst Kazanorgsintez reduced production by 18% to 107,300 tons.  Stavrolen increased production to 80,800 tons whilst Gazprom neftekhim Salavat dropped by 9% to 27,300 tons. 

    Russian HDPE Exports

    Quarter

    Ktons

    $ million

    Q1 20

    54.0

    49.7

    Q2 20

    143.3

    101.9

    Q3 20

    285.4

    21.1

    Q4 20

    199.1

    154.5

    Q1 21

    222.6

    191.9

    HDPE exports from Russia totalled 222,600 tons in the first quarter in 2021 for $191.9 million compared to 54,000 tons in the first quarter in 2020 for $49.7 million.

    Polyethylene production of all grades totalled 823,700 tons in the first quarter, which is 12% more than in the same period in 2020 when it totalled 734,700 tons.  Production in March amounted to 283,900 tons against 252,600 tons in February.  In January-March Russian production of LLDPE increased to 139,700 tons against 122,100 tons whilst LDPE production rose 3% to 178,200 tons.   

    Russian polypropylene production, Jan-Mar 2021

    Russian Polypropylene Production (unit-kilo tons)

    Producer

    Jan-Mar 21

    Jan-Mar 20

    Ufaorgsintez

    32.8

    31.1

    Stavrolen

    31.9

    29.4

    Neftekhimya

    37.4

    34.9

    Nizhnekamskneftekhim

    54.2

    53.1

    Polyom

    51.9

    48.6

    Tomskneftekhim

    38.6

    38.6

    SIBUR-Tobolsk

    0.0

    113.1

    ZapSibNeftekhim

    285.9

    116.4

    Total

    532.7

    465.2

    Russian production of polypropylene increased to 532,700 tons in the first quarter against 465,200 tons in the same period in 2020. 

    ZapSibNeftekhim, together with the merged SIBUR-Tobolsk plant, produced a total of 285,900 tons in the first three months which was 27% up overall.  Polyom at Omsk increased production by 1% to 51,900 tons whilst Nizhnekamskneftekhim reduced production from 55,200 tons to 54.200 tons.   Tomskneftekhim produced 38,600 tons in January-March 2020, up 2%.  Ufaorgsintez reduced production by 3% to 32,800, whilst Neftekhimya increased by 1% to 37,400 tons.  Stavrolen at Budyennovsk increased by 6% to 31,900 tons.  Russian homo grade polypropylene exports totalled 166,088 tons in the first quarter this year yielding $184.428 million and propylene copolymers 8,654 tons for $12.653 million. 

     

    SIBUR polyolefins Jan-Mar 2021 

     

    SIBUR’s Tobolsk Polyolefin Hub Q1 2021

    (unit-kilo tons)

    Production

    652

    Domestic sales

    247

    CIS

    32

    China

    159

    Europe

    79

    Turkey

    65

    Other

    49

    SIBUR’s revenue in the olefins and polyolefins sector rose by 139.4% in the first quarter in 2021.  The result was largely due to higher polyethylene and polypropylene sales facilitated by a higher utilisation rate at ZapSibNeftekhim. 

    The olefin and polyolefin segment’s EBITDA margin for SIBUR rose to 42.7% versus 27.1% for the same period in 2020.  SIBUR’s revenues from sales of polyethylene increased in the first quarter to 35.996 billion roubles against 7.562 billion roubles in Q1 2020 whilst polypropylene revenues rose from 16.324 billion roubles to 29.761 billion roubles.  SIBUR’s polyethylene sales increased so significantly due to the higher HDPE and LLDPE production at ZapSibNeftekhim, mainly in a rise in export activity. 

    Production of polyethylene by SIBUR increased from 328,300 tons in the first three months in 2020 to

    SIBUR Polyolefins (unit-kilo tons)

    Production

    Jan-Mar 21

    Jan-Mar 20

     Polyethylene

    437.3

    328.3

     Polypropylene

    326.1

    269.2

     Purchases from third parties

    37.3

    37.6

     Total

    800.7

    635.0

     

     

     

     Total Sales

    Jan-Mar 21

    Jan-Mar 20

     Polyethylene

    434.3

    132.5

     Polypropylene

    321.2

    242.6

     Total

    755.5

    375.0

     

     

     

     Domestic Sales

    Jan-Mar 21

    Jan-Mar 20

     Polyethylene

    159.8

    43.2

    Polypropylene

    149.8

    116.2

     Total

    309.6

    159.4

     

     

     

     Export Sales

    Jan-Mar 21

    Jan-Mar 20

     Polyethylene

    274.5

    89.3

     Polypropylene

    171.4

    126.4