TOBOLSK, SIBERIA (Jan. 3, 12:20 p.m. ET) — Russia-based Sibur Holding CJSC is considering building a petrochemical complex in Tobolsk, which is expected to be the largest in Russia and one of the largest in the world, according to CEO Dmitry Konov.
The new project, which is expected to be known as ZapSibNeftehim, involves the construction of a pyrolysis facility with a capacity of 1.5 million metric tons of ethylene. The company will also build several units to produce up to 2 million metric tons of polymers per year.
Konov said the project requires the approval of the company's board and that the final decision will be made in 2012.
Sibur is considering using light hydrocarbons as raw materials; they are obtained in this region through gas processing plants and are derived from associated petroleum gas, gas condensate and natural gas.
According to Konov, the Tobolsk project will be implemented “cautiously and carefully” so as not to cause any disruption to the company's financial situation.
“This is a large project, even for a company of our size and financial condition,” he said.
The timing of the project and its financial details have not been disclosed. There is a possibility that it might be implemented by 2016-17.