Sinopec to sell polyethylene from Amur GCC
SVOBODNY, Amur Region. Sept 6 (Interfax) - The Amur Gas Chemical Complex (AGCC), which is 60% owned by Russian petrochemical group SIBUR and 40% by Sinopec, will ship the polyethylene (PE) it produces to the Chinese company, among others, AGCC chief executive Sergei Sergeyev told reporters.
"There are all guarantees for long-term, steady supplies to the markets of China and CIS. Sinopec will be responsible for selling polyethylene, there is already successful experience working with the company within the context of ZapSibNeftekhim. In general, the contract is long-term," Sergeyev said.
AGCC will also produce polypropylene (PP).
Other promising markets for PE and PP exports besides China include Vietnam, Indonesia and Malaysia, Sergeyev said. AGCC is also studying other potential markets in South Asia, including India.
"The Indian market is one of the largest in the world, but the logistics are less efficient due to its distance compared to other markets. After the launch of AGCC we don't rule out that a portion of product will be shipped to South Asian markets," Sergeyev said.
The share of AGCC product shipped to the domestic market will depend on the development of processing in the Federal Federal District and opportunities to supply other regions of the country with product solutions, production of which is constrained at SIBUR's existing plants.
"In the Far East Federal District there are plans to minimize shipped-in feedstock from the central part of Russia, where the main production facilities are located. But right now it's difficult to say what will happen in two years, when the active stage of finished product sales will begin. We will need to check every year, based on the situation. If we're talking about brand assortment, there are plans to sell pipe brands, packaging, film here on the Russian market as part of the development of the Svobodny priority development area (PDA). High-impact plastics and so on, for automobile production, are for export to China," Sergeyev said.
The logistics for shipping products from AGCC will involve shipping 20% by truck across the Blagoveschensk-Heihe Bridge and 80% by railway through Primorye to ports.