Investments in development of oil and gas chemistry to exceed 3 trln rubles by 2030 - Novak

MOSCOW. Nov 22 (Interfax) - Investments in the development of oil and gas chemistry production facilities could total 3-3.5 trillion rubles by 2030, Russian Deputy Prime Minister Alexander Novak said during his speech in the Federation Council.

"Since 2021, the mechanism of concluding investment agreements with producers of oil and gas chemical products on the creation of new and modernization of existing facilities has been applied. Five investment agreements have already been concluded. The total amount of planned investments in oil and gas chemicals will amount to about 3-3.5 trillion rubles by 2030," he said.

Novak recalled that the construction of an oil and gas chemical complex in Ust-Luga, the Amur gas chemical complex, Amur gas processing plant and Irkutsk polymer plant is ongoing.

"The development of the sector will contribute to import substitution of petrochemical products in the domestic market, as well as the growth of non-resource non-energy exports," he added.

In October 2020, a law on the introduction of a reverse excise duty on ethane and liquefied petroleum gas (LPG) was adopted. The document sets excise rates for 2022 at 9,000 rubles per tonne of ethane and 4,500 per tonne of LPG. At the same time, the excise on LPG will be increased by 1,000 rubles every year from 2024 in order to reach 7,500 rubles by 2026.

In order to receive the reverse [negative] excise on ethane or LPG, companies had to either introduce new processing facilities with a capacity of more than 300,000 tonnes per year, or conclude a special investment agreement with the Energy Ministry until January 1, 2023 and invest at least 65 billion rubles in new facilities in the period from 2022 to 2027.

Earlier it was reported that such investment agreements were signed by Caspian Innovation Company, Ufaorgsintez and SIBUR (for the projects of Nizhnekamskneftekhim, Kazanorgsintez and ZapSibNeftekhim).