Rosneft to build petrochemical complex in Russia

Rosneft will invest between €3.5bn and €5bn ($4.4bn and $6.3bn) in the construction of a giant petrochemical complex close to the Russian city of Nakhodka.

The new plant will produce polymers such as polyethylene and polypropylene, as well as benzene, olefins and other petrochemical products. At the first stage, the complex will have the capacity to produce up to 3.4m tonnes per year.

The new complex will contain five major processing facilities, including a pyrolysis plant that will have a capacity to produce 1.4 million tonnes of ethylene, 600,000 million tonnes of propylene and 190,000 million tonnes of vinylethylene a year. Rosneft will use technologies to minimise the production of byproducts, as well as reduce energy and water consumption.

Rosneft head Edward Hudaynatov said that construction will start during the second half of 2012, while the official launch is scheduled for 2017, reports

Asia, particularly China, is expected to be the major export market for the new complex. The company also plans to build a specialised marine terminal to export the plant's production.

Rosneft is primarily involved in the exploration and production of hydrocarbons at western Siberia, southern and central Russia, Timan-Pechora, Eastern Siberia and the Far East. The company is also engaged in the production of petroleum products and petrochemicals.

Rosneft produces 12 billion cubic metres of natural and associated gas a year and is implementing measures to achieve a target gas utilisation rate of 95%.