Rosneft - Sanors polymer complex could cost 290 bln rubles
SAMARA. July 5 (Interfax) - Investment in the project of state oil major Rosneft and petrochemicals group Sanors to build a polymer complex in the Samara Region city of Novokuibyshevsk could exceed 290 billion rubles, the regional government said in a press release.
"The implementation of the project is planned for the period from 2013 through 2020. The amount of investment will total over 290 billion rubles. The new production facilities will make it possible to create more than 6,500 new jobs at the construction stage and 8,000 jobs at the production stage," Governor Nikolai Merkushkin was quoted as saying in the press release.
The project is expected to generate more than 150 billion rubles in tax revenues for all levels of government in the period from 2018 through 2025.
Merkushkin spoke about the stages of the Rosneft - Sanors project at a meeting on the development of the petrochemical industry on Wednesday.
On June 21, Rosneft and SANORS signed Heads of Agreement (HoA), under which the parties intend to create a joint venture that will incorporate Rosneft's gas processing assets and Sanors' petrochemical assets in the Orenburg and Samara regions.
It is expected that Rosneft's stake in the JV will be no less than 50%, while Sanors' stake will not exceed 50%.
The objectives for which a joint venture will be created and its future development strategy provide for construction of a brand new world class petrochemical complex in Samara region. It is planned that the complex will be focused on import substitution and meeting growing domestic demand for key polymers and other chemicals able to meet market competition in terms of quality and technologies.
The parties plan to further negotiate formation of the joint venture and sign binding documents by the end of 2013.
It was also reported earlier that Sanors has plans to build a new pyrolysis facility with capacity to produce 1 million tonnes of ethylene per year and polymer production facilities on its basis, as well as build a primary oil refining facility with capacity of 5 million tonnes per year. The company plans to carry out the project to build the ethylene and polyolefin facilities over a period of ten years.
Sanors head Igor Soglayev said that the group sees potential for production of polyurethane, emulsion PVC and ABS plastic, much of the domestic consumption of which is currently covered by imports.
Sanors petrochemical holding company - SamaraNefteOrgSintez asset management company (Novokuibyshevsk) was founded in 2011 from a merger of SamaraOrgsintez, Neftekhimia and Novokuibyshevsk Petrochemical Company. In 2012, the holding company incorporated NK TPP-2. Sanors produces a wide variety of petrochemical products, such as phenol, acetone, alpha-methyl-styrene, ethylene, synthetic ethanol, alkylphenols, etc.
