Russia/Petrochemiclal Industry Petro–Deals in Russia: Sibur Announces Huge Progress for Plant and IT–Projects
Russian petrochemical specialist Sibur announces mega-deals for its new integrated petrochemical facility. Furthermore, the company was able to make a deal with software specialist SAP for the largest IT project in Russia’s petrochemical industry.
St. Petersburg/Russia – A consortium of Russia’s Direct Investment Fund (RDIF) and international investors plans to invest major sums in the development of Zap Sib Neftekhim, Sibur’s integrated petrochemical facility in Tobolsk, Russia. RDIF plans to use part of its funding quota from the Russian National Welfare Fund (NWF) to develop infrastructure for this world-scale investment project, a hydrocarbon to polyolefin deep processing facility.
The total investment budget for the project is estimated at up to US $ 9.5 billion, of which up to US $ 1.75 billion may be raised from the NWF through secured debt financing. A further US $ 3.3 billion to be provided by RDIF, international co-investors and commercial banks. Sibur will also continue to finance the construction project with its own funds.
The Largest Russian Petrochemial Facility
Zap Sib Neftekhim is designed to become the largest modern petrochemical facility in Russia: The project involves the construction of a steam cracker with a capacity of 1.5 million tons per year of ethylene, around 500.000 tons of propylene and 100.000 tons of butane-butylene fraction (BBF) per year, along with units producing various grades of polyethylene and polypropylene with a total capacity of two million tons per year.
“Constructing the petrochemical facility will be RDIF’s largest infrastructure project, and is focussed on import substitution and developing Russian exports”, said Kirill Dmitriev, CEO of the Russian Direct Investment Fund. “The new facility will lead to a considerable reduction in the high proportion of imports of value-added petrochemical products in Russia. ZapSibNeftekhim’s products will be of the same quality as imports.”