Russia Ministry of Energy: The Ministry of Energy of Russia signed investment agreements on the creation of new petrochemical facilities with PJSC SIBUR Holding

The Ministry of Energy of Russia concluded investment agreements on the creation of new petrochemical facilities with three enterprises of SIBUR Holding PJSC – ZapSibNeftekhim LLC, Nizhnekamskneftekhim PJSC and Kazanorgsintez PJSC. Within the framework of the agreements, petrochemical enterprises plan to commission and reconstruct a number of process units related to the production of petrochemicals.

In order to conclude investment agreements aimed at the development of petrochemical production in Russia, in October 2020, amendments were made to the Tax Code of the Russian Federation in terms of introducing a reverse excise tax on ethane, liquefied hydrocarbon gases and an investment coefficient used to determine the amount of the reverse excise tax on petroleum feedstock.

The commissioning of new capacities at the company’s enterprises will have a significant positive impact on the development of the petrochemical complex of the Russian Federation, in particular, it will contribute to the import substitution of petrochemical products, products of small and medium-sized chemicals in the domestic market of the Russian Federation, as well as the growth of non-resource non-energy exports within the framework of the national project “International cooperation and export”. The minimum guaranteed volume of investments in installations related to the production of goods that are petrochemical products under these agreements from 2022 to 2027 inclusive will be at least 395 billion rubles to receive the maximum amount of state support provided.

The growing demand for petrochemical products in the main export areas, coupled with the high competitiveness of Russian products due to the low cost of natural gas production, open up high prospects for the development of petrochemicals.

Thus, in accordance with the targets of the updated Plan for the development of gas and petrochemistry in Russia for the period up to 2030, the volume of production of petrochemical raw materials from 2021 to 2030 will increase by 1.5 times – from 44.8 to 66.2 million tons, respectively, and the share of its processing by petrochemical enterprises will increase even higher – almost 1.6 times, from 29.8% to 46.5%. First of all, this makes it possible to increase the production of large-scale polymers – polyethylene, polypropylene, polyvinyl chloride (PVC), polystyrene and others.