The Russian Petrochemical Industry Is Able To Reach 1.5% GDPNov 21st, 2017
The Ministry of Energy of Russia gives a favourable prognosis for the advancement of the petrochemical sector. Kirill Molodtsov, the Deputy Minister of Energy of Russia reported that the proportion of petrochemicals in the GDP will make up 1.5% in the short term.
This forecast relies on the successful activities of SIBUR HOLDING, which is the largest national gas processing and petrochemicals company, focused on two main segments —and petrochemicals and feedstock & energy. Over recent years, SIBUR has maintained robust output. The high performance of Sibur is the evidence of the well-chosen policy by the Ministry of Energy which is to create the added value and capitalize on the petrochemical sector of the country. According to Kirill Molodtsov, these challenges are the key drivers of economic growth on the whole. It is quite possible that the surplus product of the petrochemical industry can make up 0.5-1.5% of GDP. The Ministry did not specify the current percentage of GDP for the petrochemical sector but noted the growing competition in the petrochemical market.
Competition is tough between the national chemical producers as well as between Russian producers and their foreign partners. For example, strong competitors in the petrochemical sector for Russia are China and Iran; however, Europe should not be removed from the accounts either. Russian refiners are two to three steps behind their international colleagues in the production of speciality chemicals.
The situation can be improved by extensive investments in the polymer industry. One of the largest projects of SIBUR is the installation of the pyrolysis facility at Zapsibneftekhim, which will produce ethylene, polypropylene and butane-butylene fractions. Moreover, SIBUR will construct two facilities with the annual capacity of 2 million tonnes which will manufacture various grades of polyethene and polypropylene.