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21-03-2019

7 ambitious methane-based chemical projects in Russia and CIS

In preparation for the CIS Gas Monetisation conference, Globuc – the organizing company has put together an overview of the key upcoming projects in the gas-chemical sector in the CIS region. The overview consists of 7 ambitious methane-based projects that will have a great impact on the industry’s development in the region.

Grodno Azot- construction of a new nitrogen complex
The implementation of a new nitrogen complex construction will allow the company to not only satisfy domestic market needs, but also have a reliable profit from exporting. After the project completion, which is scheduled for 2024, the volume of nitrogen fertilizers production will increase by more than 150%. It is expected that the project will attract around $3.1 billion.

Gazprom Neftekhim Salavat - MTO technology project
Olefins and polyolefins production using MTO technology is being planned by Gazprom Neftekhim Salavat. A complete set with capacities of 300, 600 and 900 thousand tons per year are currently being considered. The project construction will take about three years, and financing will require an investment of several billion dollars. Last year, Gazprom Neftekhim Salavat signed a memorandum with the Wison Engineering (EPC company), who will take over the project technical support at the Pre-FEED stage, participate in the designing of the complex, choose a technology provider, and develop and provide support for the investment business case.

ESN Group - methanol project
The ESN group is planning to build a methanol plant which will be located in the Amur region. The total investment is estimated at about 40 billion roubles. Gas for the methanol production will be mainly supplied by Gazprom. According to Grigory Berezkin, owner of the ESN group of companies, the group is ready to start construction in 2019. The project is currently at the final stage of reaching an agreement with Gazprom.

Ruschimcom - methanol production project
Ruskhimcom is considering building a methanol production complex in the Leningrad region. Currently, the project is at the documentation development stage. The project is included in the priority projects of the gas-to-chemicals complex program and supported by the Russian government. It is expected that, after the plant launch, production capacity will reach around 1.75 million tons of methanol per year. The project completion is scheduled for 2020.

Uzbekneftegaz - $ 2 bn-worth MTO technology project
Uzbekneftegaz has reached an agreement with Air Products on the advanced gas processing projects. The project will be worth around $2 billion. The estimated production capacity is expected to reach 1-1.5 billion tons gas [KH1] per year. The initial plan includes the construction of a gas-chemical cluster, which will include a gas-chemical complex (MCC) using the MTO technology, as well as about 10 plants for polymer processing. The production volume will be composed of 200-250 thousand tons of polypropylene, 100 thousand tons of ethylene-propylene rubber, 100 thousand tons of polyethylene terephthalate and ethylene vinyl acetate, and 100-150 thousand tons of ethylene glycol and polyethylene. The end of construction deadline has not yet been determined.

Nizhnekamskneftekhim - a new methanol production unit
Nizhnekamskneftekhim, one of the largest petrochemical producers in Eastern Europe, is looking into building a new methanol plant. The producer mainly uses methanol (methyl alcohol) to produce formaldehyde as a feedstock for the company’s isoprene production. The new methanol unit will make the isoprene facilities more efficient and reduce production costs. Production will have a capacity of 500 thousand tons of methanol per year. The cost and construction time have not yet been specified.

GTM ONE (AEON Corporation) - new methanol plant construction
GTM ONE is planning the construction of a methanol production unit and chemical plant in Volgograd. The facility is expected to be constructed on the existing site of the Khimprom plant. The capacity of the chemical plant will be at least 1 million tons of methanol per year. All products of the plant will be exported. To date, the key terms of the project have already been agreed upon and, currently, project management is considering various marketing and logistics models. The construction is set to begin at the start of 2020. The total investment will exceed $800 million. The production is planned to be launched by 2022.

Heads of these and other active gas-chemical projects in the region will meet on the 9-10 of April in Moscow during the CIS Gas Monetisation conference. More information about the event.

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