One of world's largest polypropylene production facilities opens in Siberia

Vladimir Putin in Tobolsk opens 'biggest investment project' in Russian petrochemical industry. 'What is even more important is that these funds have been invested in something that is useful, necessary and beneficial for our country,' said the president at the commissioning of the new plant.

'Both in terms of its scale and its value, today's event - I know you have been preparing for the plant's opening for a long time - has a very significant meaning. A new, important cluster has appeared on Russia's industrial map, not just one plant, but an entire cluster involved in the production of a very important product: polypropylene.

'The issue at stake is not simply that we have started to produce something new. This is a multifaceted task. For many years now we have been talking about how to make use of associated gas, large quantities of which are burned. Previously, in 2012, we burned 23 percent of all associated gas, over 17 billion cubic metres. Once your plant is operational, 5 billion cubic metres of gas that would otherwise be burned will be used here, in your plant. Instead of being flared, it will be put to work for the Russian and global economies.'

The development comprises two units - a 510 ktpa propane dehydrogenation (PDH) propylene production unit and a 500 ktpa polypropylene production unit. 

'The complex is in the immediate vicinity of SIBUR's operating plant, Tobolsk-Neftekhim, which will supply the feedstock - over 600 ktpa of propane. Tobolsk-Polymer is in the top 10% of most efficient polypropylene production facilities globally in terms of cash costs.

Construction of the facility started in spring 2010 and was completed in standard time by global benchmarks', reported SKRIN Newswire. As a result of the opening, Russia will become a net exporter instead of a net importer of basic polypropylene grades.

The opening ceremony was attended by Alexander Novak, Russian Energy Minister; Vladimir Yakushev, Governor of the Tyumen Region; Leonid Mikhelson, Chairman of OJSC SIBUR Holding's Board of Directors and Chairman of OJSC NOVATEK's Management Board; Alexander Dyukov, Deputy Chairman of OJSC SIBUR Holding's Board of Directors and CEO of Gazprom Neft; and Dmitry Konov, SIBUR's CEO.

Putin urged SIBUR to invest in the Far East of Russia in a similar venture. The president - who flew over the Tobolsk Kremlin to assess renovation work - also set in motion plans for an airport in the West Siberian town. 

Despite its flourishing local economy, the nearest airport is Tyumen, 250 km away. 

'I will give the order to study (the matter) to the Transportation Ministry, and it should be done as a team initiative,' he said. 'The ministry may build a runway, and the company jointly with the regional authorities may make a passenger terminal and the entire infrastructure.'