Novatek ups petrochemical output with new plant
Novatek, Russia's biggest independent gas producer, launched the second phase of the Purovsky refining plant in the Urals region this week. Its the first gas condensate production unit of this kind built in the past 25 years.
That's a vital addition to Russia's industrial capacity according to Energy Minister, Sergey Shmatko.
“Processing more and higher quality hydrocarbons is one of the highest priorities for the Russian energy industry”
The new plant will boost Russia's gas condensate output by 20%. But Russia’s petrochemical leader, Sibur, is cutting output, and Germany’s BASF is shutting 80 factories worldwide.
Vladimir Rozhankovsky, Senior Analyst at Centre Invest group says the petrochemical industry doesn’t need extra production at the moment.
“The overall situation on financial markets is not very favourable for increasing output, because of what petrochemicals are all about. They are the source materials for producing a wide area of plastics. Most of the materials are, unfortunately, viewed as suppliers of the troubled building sector.”
Novatek’s new plant will be able to double its gas condensate output in about 2 or 3 years. By that time, analysts hope the market will get back to normal and the firm will be ready to cash in on renewed demand.