Russian Project on Track to Increase Global Presence in PE
07/08/2021
Russian oil and gas company RusGasDobycha said its upcoming Complex for Processing Ethane-Containing Gas (CPECG) project is poised to become a global leader in Polymer production. The CPECG project, which began construction in May near the Ust-Luga, Leningrad Region, is set to become Russia's largest gas processing facility and the largest LNG facility in Europe. The project will also drive an increase in Russia's share in the world oil and gas chemicals market from 2.5% to 6-7%.
The complex, which combines LNG and Ethane production within one industrial site, will process 45 billion m3 of gas, produce 13 million tonnes of LNG, up to 3.8 million tonnes of Ethane fraction, up to 2.4 million tonnes of LPG, and 0.2 million tonnes of Pentane-Hexane fraction on an annual basis.
Ethane produced at the plant is to be supplied to a high-potential gas chemical facility, which is part of the project, that will produce over 3 million tons/year of Polyethylene (PE).
"The facility's LNG capacity of about 13 million tonnes/year will significantly boost Russia's share in the global LNG market and, first of all, in European countries, which appear to be the primary focus of the project," said Alexey Kalachyov, an analyst with investment and brokerage firm FINAM.
Kalachyov added that the project will increase Russia's presence in the fast-growing LNG and PE production segment, and with the construction of the gas chemical facility that has PE capacity for up to 3 million tonnes/year, the complex will be a world leader in terms of volume.
The first stage of the complex is on track for completion in Q4 2023, with the second stage to be phased in the following year.
By Brian Balboa for The Plastics Exchange.
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