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The market leader

Base petrochemicals — aromatic hydrocarbons (benzene, paraxylene, orthoxylene, toluene, and aromatic hydrocarbon fraction) and propane-propylene fractions (propylene-bearing liquefied petroleum gas) — are produced at Gazprom Neft’s Moscow, Omsk and Yaroslavl refineries.

Subsequent refining of base petrochemicals and polypropylene production is undertaken at Poliom LLC, Omsk, a joint venture with SIBUR Holding, and NPP Neftekhimia LLC, Moscow.

Total polypropylene production stood at 348,000 tonnes in 2018, with maximum hourly production volumes at NPP Neftekhimia, moreover, at 17.25 tonnes per hour, being reached for the first time since going into production.

Sales of basic petrochemicals
Sales of basic petrochemicals (million tonnes) excluding sales through the Poliom LLC and Neftekhimia LLC joint ventures.

Development of Polyom LLC

Poliom is one of Russia’s largest polypropylene producers. The plant has capacity to produce 218,000 tonnes of high-technology product every year, with a range covering 100 brands of polypropylene. The key feedstock for production — propane-propylene fraction — is sourced from the Gazprom Neft Omsk Refinery, with SIBUR Holding managing the distribution of end-products throughout Russia and the CIS.

A major event in Gazprom Neft’s petrochemicals development strategy occurred in June 2019, with Gazprom Neft and SIBUR consolidating 100% of the charter capital in the Poliom polypropylene plant in Omsk following the acquisition of an interest in the business from the Titan Group of Companies.

218 tonnes of high-quality product per year can be manufactured at the Poliom plant.

Future projects

Petrochemicals is a key area of focus in Gazprom Neft’s development strategy. Company strategy to 2030 envisages increasing the petrochemicals business’ contribution to the Downstream Division’s operating profit (EBITDA) to 10%. The company is now developing a promising petrochemicals portfolio through several projects, one of the largest of which is expected to be put into operation at the Omsk Refinery.

Gazprom Neft plans to modernise the cat-cracking facility at its Omsk Refinery, repurposing this to produce raw materials for petrochemical products, as well as building a one-million-tonne-capacity pyrolysis unit.