Russia Petrochemicals Market Report Q1 2012

2011-12-28
Published : Dec-2011

The Russian government has grand plans for its petrochemicals sector, which in spite of the country’s huge oil and gas wealth remains underdeveloped. The Energy Ministry has set out plans to spend billions of dollars establishing a number of petrochemical hubs across the country and building the infrastructure, including pipelines and railways, to support an expanded petrochemicals base. Those plans, however, will likely be slowed over the short term as the eurozone debt crisis continues to weigh on the global economy.

Russia Petrochemicals Market Report Q1 2012

Order Now, Contact: + 1 888 391 5441 or sales@sandlerresearch.org

Indeed, the crisis has scuppered hopes of an H211 recovery in private consumption in Russia and we have lowered our final household expenditure growth projections for 2011 to 3.0% from 4.1% previously. Moreover, we caution that failure to tame inflation expectations could force a more aggressive hiking cycle by the central bank in H211. This would hit the petrochemicals industry, particularly segments reliant on the production of consumer goods, exacerbating the already-adverse effects of rising inflation.

Despite revising down Russia’s 2011 private consumption growth forecast as higher inflation hurts real wage growth and consumer confidence, we have raised our overall real GDP growth forecast to 4.6% from 4.3% for this year on the back of higher oil and gas production and prices. This should help offset most of the effects of inflation on household spending.

Petrochemicals production growth in 2011 has been led by Sibur’s expansion, with the company planning a 14% y-o-y rise in output to 18.8mn tonnes. Although the strong rouble will likely start to hurt external demand for manufactures at some point, for now we remain upbeat on the outlook for the petrochemicals sector.

Lukoil-Neftekhim’s world-class petrochemical complex in Budyennovsk, southern Russia, is back on track after having been stalled by the financial crisis. In October 2011, the company started construction of the first phase of the project, which will source feedstock from Lukoil’s offshore oil and gas fields in the Caspian Sea. The first phase, scheduled for completion in 2015, will see the construction of a new 2bcm gas processing plant, a 135 MW combined-cycle gas turbine and the upgrade of an existing ethylene production unit at the site to all for the processing of all natural gas liquids. The second phase, scheduled to come online in 2017, will see the gas processing plant expanded to 4bcm and will see the construction of a 225,000 tonnes per annum (tpa) ethylene production plant and a 255,000tpa polyethelene production facility. Lukoil has said that, once completed, the facility will be Russia’s largest polymer production centre.

Russia is expected to build up to 10 complexes to produce ethylene, each with a 1m tonne capacity, by 2030. Annual per capita production of ethylene is currently three times lower in Russia than in Western Europe, despite Russia’s position as one of the world’s largest crude producers. Over the forecast period, the focus of investment will be Nizhnekamskneftekhim’s (NKNK) planned 1mn tpa ethylene complex by 2016, Sibur’s planned 1mn tpa cracker at its Tobolsk site which will also feature a new 500,000tpa PP plant, and Gazprom’s planned 80,000tpa increase in ethylene capacity at its Salavat complex to 380,000tpa by Q412 in tandem with a similar rise in its HDPE capacity at the site to 200,000tpa.

Russian PVC consumption is expected to rise by 30% in 2011 on the back of 3% growth in construction activity, which is fuelling imports and putting upward pressure on prices. Over the past two years, PVC has suffered alongside the poor performance of the construction industry. However, the lack of domestic production capacity and strengthening growth in construction over the medium term means that the country will be dependent on PVC imports over much of the forecast period; in 2010, PVC imports reached an all-time high of 486,000 tonnes. We see recovery on the back of preparations for the 2018 World Cup, especially in commercial construction.

In response to the upturn, Sibur is pressing ahead with the RusVinyl 330,000tpa PVC plant at Kstovo in Nizhny Novgorod, a JV with SolVin; capacity will be increased to 500,000tpa at a later stage.

Construction began in 2010 with completion slated for 2012 when it is envisaged the plant will remove Russia’s dependency on PVC imports. In December 2010, Lukoil said it could build a new PVC unit in southern Russia with a capacity of up to 500,000tpa, but it is not expected to begin operations before 2017. The state-owned Gazprom also has plans for a complex in the Orenburg region with capacities of 650,000tpa PE and 450,000tpa PP, expected to come onstream in 2015.

Executive Summary
Russia Chemicals And Petrochemicals Industry SWOT
Russia Political SWOT
Russia Economic SWOT
Russia Business Environment SWOT
Global Petrochemicals Overview
Petrochemicals Market Overview
Table: World Ethylene Production By Country, 2011 And 2015 (‘000 tonnes capacity)
Financial Results
Table: Financial Results Of Major Petrochemicals Companies, 2010
Global Oil Products Price Outlook
European Petrochemicals Overview
Russia Market Overview
Petrochemicals Trade
Market Structure
Table: Russia’s Cracker Capacity Data – Historical Data & Forecasts (000 tpa)
Foreign Investment
Business Environment
Petrochemicals Business Environment Ratings
Table: Central And Eastern Europe Petrochemicals Business Environment Ratings
Russia’s Foreign Investment Policy
Foreign Trade Regime
Tariffs/Non-Tariff Barriers
Tax Regime
Industry Trends and Developments
Upstream
Downstream
Olefins and Aromatics
Polymers
Fertiliser
Industry Forecast Scenario
Table: Russia’s Petrochemicals Sector, 2008-2016
Macroeconomic Outlook
Table: Russia – Economic Activity, 2011-2016
Company Profile
Lukoil
Nizhnekamskneftekhim (NKNK)
Salavatnefteorgsintez
Sibur Holding
Glossary Of Terms
Table: Glossary Of Petrochemicals Terms
BMI Methodology
How We Generate Our Industry Forecasts
Chemicals And Petrochemicals Industry
Cross Checks
Business Environment Ratings
Table: Petrochemicals Business Environment Indicators And Rationale
Weighting
Table: Weighting Of Indicators
Filed in: Energy & Power, Petrochemicals
More Reports
Title Price Buy Now

Q1 2018 Global Bid Round Outlook – Australia to Close Three Bid Rounds in the Quarter

Q1 2018 Global Bid Round Outlook - Australia to Close Three Bid Rounds in the Quarter Summary Globally nine bid rounds are due to close in Q1 2018. The ‘Lease Sale 250' round in the US offers most number of blocks among all the bid rounds due to close in the quarter. A total of 14,743 blocks are on offer globally in Q1 2018. Of these, 5,876 are ultra-deepwater blocks, 5,580 are shallow water blocks, 3,277 are deepwater blocks, and 10 are onshore blocks. In terms of acreage, the US have the highest acreage on offer of all the bid rounds in the quarter. Scope - Provides overview of global bid rounds due to close in Q1 2018 - Information on each bid round due to close in Q1 2018 by country - Recent exploration and licensing history of countries where bids are due to close in the quarter ......
$3000

Quarterly Upstream Benchmarking of Supermajors – ExxonMobil Leads with Most Remaining Reserves

Quarterly Upstream Benchmarking of Supermajors - ExxonMobil Leads with Most Remaining Reserves Summary Among supermajors or the Big Oil considered - Shell, BP, Eni, Chevron, Exxonmobil, and Total - ExxonMobil has the most remaining reserves in producing, planned and announced fields, followed by Shell. Chevron has the highest median for full cycle capex per boe across all of its planned projects expected to start by 2025. Shell leads in terms of forecast total production entitlement in 2020 with more than 1,500 mmboed followed by Exxon Mobil and BP. Scope - Supermajors total global oil and gas production outlook for 2018 and 2020 - Remaining crude oil and natural gas reserves of Supermajors for planned, announced and producing projects - Key economic metrics of Supermajors - Basic corp......
$5000

Semi-Annual Production and Capital Expenditure Outlook for Key Planned and Announced Upstream Projects in North Sea – UK Leads Planned Projects Count

Semi-Annual Production and Capital Expenditure Outlook for Key Planned and Announced Upstream Projects in North Sea - UK Leads Planned Projects Count Summary In North Sea, more than 40 key crude oil and natural gas projects are expected to start operations by 2025. The UK leads with the highest number of planned as well as announced projects, followed by Norway, the Netherlands and Denmark. Key projects in North Sea are expected to contribute up to 940 mbd to global crude production and more than 1,300 mmcfd to global gas production in 2025. Among operators, Statoil Petroleum AS, Statoil UK Ltd and Independent Oil and Gas Ltd lead in terms of operatorship of planned and announced projects. Scope - Oil and gas production outlook by key countries and companies in North Sea - Planned proj......
$1500

Monthly Global Upstream Review, February 2018 – Marginal Upturn in Total Production Outlook

Monthly Global Upstream Review, February 2018 - Marginal Upturn in Total Production Outlook Summary Globally, total oil and gas production is expected to increase by 3% during the 2018 to 2022 outlook period. The total production is expected to increase to more than 60 billion boe by 2022. A total of more than 500 planned and announced projects are expected to come online globally by 2022. Asia leads with the highest number of planned and announced projects among regions, followed by Africa and Europe. Scope - Global oil and gas production outlook by region for the period 2018 to 2022 - Key economic metrics for the global upstream industry by major regions and companies - Global liquids and natural gas production outlook by region for the period 2018 to 2022 - Global capex spending out......
$1500

Quarterly Production and Capital Expenditure Outlook for Key Planned and Announced Upstream Projects in Southeast Asia – Indonesia at the Forefront in Capex Spending

Quarterly Production and Capital Expenditure Outlook for Key Planned and Announced Upstream Projects in Southeast Asia - Indonesia at the Forefront in Capex Spending Summary In Southeast Asia, more than 40 key crude oil and natural gas projects are expected to start operations by 2025. Indonesia leads with the highest number of planned projects, followed by Malaysia and Vietnam. Malaysia leads in terms of announced projects, followed by Indonesia and Vietnam. Key projects in Southeast Asia are expected to contribute up to 190 mbd to global crude production and more than 8,400 mmcfd to global gas production in 2025. Among operators, Sapura Energy Berhad, Husky-CNOOC Madura Limited and PETRONAS Carigali Sdn Bhd lead in terms of operatorship of planned and announced projects. Scope - Oil ......
$1500

UK Power Market Outlook to 2030, Update 2018 – Market Trends, Regulations, and Competitive Landscape

UK Power Market Outlook to 2030, Update 2018 - Market Trends, Regulations, and Competitive Landscape Summary This report elaborates the United Kingdom's power market structure and provides historical and forecast numbers for capacity, generation, and consumption up to 2030. Detailed analysis of the United Kingdom power market's regulatory structure, import and export trends, competitive landscape, and power projects at various stages of the supply chain is provided. The report also gives a snapshot of the power sector in the United Kingdom on broad parameters of macroeconomics, supply security, generation infrastructure, transmission infrastructure, degree of competition, regulatory scenario, and future potential. An analysis of the deals market scenario in the country's power sector is ......
$2500

Monthly Oil & Gas Industry Contracts Review – CB&I and Samsung Engineering’s EPC Contract Leads Contracts Activity

Monthly Oil & Gas Industry Contracts Review - CB&I and Samsung Engineering's EPC Contract Leads Contracts Activity Summary GlobalData's "Monthly Oil & Gas Industry Contracts Review - CB&I and Samsung Engineering's EPC Contract Leads Contracts Activity", report is an essential source of data on the contracts and open tenders in the oil and gas industry, The report portrays detailed comparative data on the number of contracts and their value in the month, subdivided by region, sector and geographies in February 2018, Additionally, the report provides information on the top contractors and issuers based on the worth of contracts executed in the oil and gas industry during the month by geographies and over the year. Data presented in this report is derived from GlobalData's IPAR database an......
$500

Monthly Upstream Deals Review – February 2018

Monthly Upstream Deals Review - February 2018 Summary GlobalData's "Monthly Upstream Deals Review - February 2018", report is an essential source of data and trend analysis on M&A (mergers, acquisitions, and asset transactions), in the upstream oil and gas industry. The report provides detailed comparative month-on-month data, on the number of deals and their value, sub-divided into deal types by geographies. It also envisage on the recent rumors on acquisitions across the industry. The report also highlights Top Buyers and Sellers, as well as Valuation Multiples ($/boed, $/1P boe, $/2P boe) by Region for the last six months. Data presented in this report is derived from GlobalData's proprietary in-house Oil and Gas eTrack deals database and primary and secondary research. Scope - Ana......
$500

Tanzania Renewable Energy Policy Handbook 2018

Tanzania Renewable Energy Policy Handbook 2018 Summary "Tanzania Renewable Energy Policy Handbook 2018", is among the latest country specific policy report from GlobalData, the industry analysis specialist that offers comprehensive information on major policies governing renewable energy market in the country. The report provides the current and future renewable energy targets and plans along with the present policy framework, giving a fair idea of overall growth potential of the renewable energy industry. The report also provides major technology specific policies and incentives provided in the country. The report is built using data and information sourced from industry associations, government websites and statutory bodies. The information is also sourced through other secondary res......
$500

Angola Renewable Energy Policy Handbook 2018

Angola Renewable Energy Policy Handbook 2018 Summary "Angola Renewable Energy Policy Handbook 2018", is among the latest country specific policy report from GlobalData, the industry analysis specialist that offers comprehensive information on major policies governing renewable energy market in the country. The report provides the current and future renewable energy targets and plans along with the present policy framework, giving a fair idea of overall growth potential of the renewable energy industry. The report also provides major technology specific policies and incentives provided in the country. The report is built using data and information sourced from industry associations, government websites and statutory bodies. The information is also sourced through other secondary researc......
$500