Lukoil confident Karpatnaftochim will break even
BUDYONNOVSK. Feb 12 (Interfax) - Lukoil is confident its Karpatnaftochim petrochemical plant in Ukraine will break even.
"We've been in close negotiations with the Ukrainian government and reached an understanding. Unfortunately, the events taking place have suspended the negotiating process," Lukoil chief Vagit Alekperov told reporters.
He said the Ukrainian government and president had issued instructions to lower rail tariffs to deliver feedstock and goods, there was an understanding to lower the price of steam and the price of gas had come down. "We're hoping to get down to negotiations after the new government has been formed. We have a clear road map, under which conditions the plant can not make a loss," he said.
"We must tread according to this road map. If we tread in light of the understandings with the Ukrainian government, I'm confident the plant will not make losses. It is unlikely to make a profit in today's macroeconomic conditions, but it will definitely not be making losses," he said.
The Market Report analytical agency said Karpatnaftochim stopped producing suspension PVC late December. Lukoil declined to comment.
Production of ethylene, polyethylene, vinyl chloride, caustic soda, chloride and suspension PVC was halted in September 2012 due to the poor market for petrochemical output.
In April 2013 the Ukrainian Cabinet signed a memorandum with Lukoil on implementation of a host of measures to put plant's operations on a profitable footing.
Production of suspension PVC resumed in November. The plant managed to produce more than 12,000 tonnes of this before the end of 2013.
