TAIF halts production because of SIBUR's refusal to accept naphtha - media

MOSCOW. April 7 (Interfax) - Tatarstan-based JSC TAIF oil refining complex, controlled by the founders of the TAIF group, has suspended operations of its processing units owing to the lack of sales of finished products and overstocking at tank farms, the Kazan newspaper Business Online wrote.

According to the publication, Maxim Novikov, General Director of TAIF, signed the order on this matter on April 2, and the final stoppage in production could be on Thursday.

The publication also reported that SIBUR-owned PJSC Nizhnekamskneftekhim (NKNKH) at the beginning of the week had notified TAIF about gradually ceasing the receipt of straight-run gasoline (naphtha) from the oil complex as of April 4.

"The refinery overall supplies petroleum chemists with about 1.3 million tonnes of straight-run gasoline annually, with a total processing volume of about 8 million tonnes of oil. However, naphtha is the result of the first processing stage required for the subsequent stages; therefore, all facilities must be stopped immediately," the publication noted.

Citing SIBUR's press service, the newspaper reported that NKNKH was also under the threat of a partial shutdown in production owing to the sanctions.

"Since the end of February, the company has been operating under conditions of unprecedented trade and logistics restrictions. This has already led to an actual decrease in exports to the European market, where a significant portion of NKNKH's products have been sold, including the forced suspension of contracts with individual consumers. Continuing accumulation of remnants of raw materials and finished products in warehouses creates a high risk of at least partial unloading of production," the publication quoted SIBUR's press service as saying.

Interfax's source in the fuel market said that the counterparties on April 6 received letters from TAIF with a request to agree on possibly postponing the shipment date until May 15, 2022, for all unshipped transactions.

In October 2021, SIBUR closed the deal to acquire JSC TAIF with its petrochemical companies, PJSC Kazanorgsintez , PJSC Nizhnekamskneftekhim , and JSC TGK-16 energy company. TAIF was not part of the deal.