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AMUR GCC Project showing the 9 Linde Pyrolysis Furnaces and the Quench Tower | AGCC website

Amur Gas Chemical Complex: Navigating Technology Licensing Challenges

The Amur Gas Chemical Complex (Amur GCC) exemplifies the intricate balance between technological ambition and geopolitical realities. Originally designed to become the world’s largest polymer production site, the project has faced significant delays due to shifts in technology licensing dynamics, even as its core infrastructure advances.

The Amur GCC Project

Amur GCC stands as one of the most ambitious petrochemical undertakings in Russia’s recent history and a flagship of Russian-Chinese industrial cooperation. Located near Svobodny in the Amur region of Russia’s Far East, the project is a joint venture between SIBUR, Russia’s largest petrochemical company, holding a 60% stake, and China’s Sinopec, which owns the remaining 40%. When completed, Amur GCC will be among the world’s largest producers of base polymers, with a design capacity of 2.7 million tonnes per year—2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene.

The complex is integrated with the broader Amur gas processing and gas chemical cluster, ensuring direct feedstock supply via pipelines. Gazprom’s Amur Gas Processing Plant (Amur GPP), which processes natural gas from East Siberian fields, will supply the primary feedstock to Amur GCC: ethane (up to 2 million t/y), and LPG (propane/butane, ~1.1 million t/y).

Steam Cracker and Downstream Progress

At the heart of the complex lies its 2.3 million t/y ethylene plant, supplied and partially engineered by Linde before the German firm’s confirmed withdrawal in 2022. Linde’s contributions included delivering critical components like the 1,500-ton quench tower, transported from South Korea to the remote Amur site—a logistical triumph showcased in earlier project updates.



Quench tower delivery to AMUR GCC, Nov 2021 | Credit: Linde Engineering 

By January 2024, SIBUR released a progress video on AGCC status update as of December 2023, confirming that polyethylene (PE) and polypropylene (PP) production units were being deployed as originally planned. The footage shows equipment installation for these downstream facilities, suggesting that proprietary technologies from Western licensors—Univation (Unipol PE gas-phase plants), ChevronPhillips Chemical (PE slurry process, undefined if MarTECH Single Loop or Advanced Dual Loop), and LyondellBasell (Spheripol PP Technology)—remain integral to the project. This indicates that either licensing agreements persisted post-2022 or SIBUR/Sinopec retained rights to use the technologies despite licensors’ reduced involvement.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is a Slurry Loop Reactor | Credit: Sibur

Licensing Uncertainties and Delays

While Linde publicly exited the project by July 2022, when part of the equipment, including the pyrolysis unit, had already been built, SIBUR and Sinopec decided to reconsider the strategy for implementing the project, redesigned it and replaced contractors and license holders for the polyethylene and polypropylene lines. To this date, the status of other Western partners remains ambiguous as public disclosures from SIBUR and Sinopec have not clarified whether CPChem, Univation, or LyondellBasell continue to provide technical support or if their pre-sanction contracts are being honored. The lack of explicit withdrawal announcements contrasts with the project’s two-year delay.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is likely a Gas Phase Unipol PE reactor | Credit: Sibur

It is a matter of speculation if SIBUR and Sinopec may be relying on existing licenses, in-house expertise, or third-party intermediaries to proceed with the original technologies. The January 2024 video underscores that downstream unit construction aligns with initial designs, implying that the licensors’ intellectual property is still being utilized, albeit without confirmed active collaboration.

Construction began in August 2020 and mechanical completion has been delayed to 2026 (originally 2024–25). Despite licensing headwinds, the Amur GCC achieved 76% mechanical completion by mid-May 2025 with commercial polyethylene production to start by Q3 2026, polypropylene production and full operations expected to follow in 2027 (source: interfax.com).

Strategic Implications

The Amur GCC’s trajectory highlights the resilience of large-scale petrochemical projects in the face of geopolitical disruptions. While Linde’s exit created logistical and technical gaps, the continued use of Western-designed downstream technologies—whether through preserved licenses or workarounds—demonstrates SIBUR and Sinopec’s commitment to delivering a world-class facility. The complex’s success will hinge on operationalizing these units without direct licensor support, a challenge that could redefine global norms for technology transfer in sanctioned environments. For now, the Amur GCC stands as a testament to both international collaboration’s potential and its fragility in an era of shifting alliances.

#linde  #univation  #lyondellbasell  #chevronphillips  #cpchem  #sibur  #amurgcc  #sinopec 
#steamcracker  #ethyleneplant  #amur  #russia  #unipolpe  #martech  #slurryloop  #gasphasepe  #spheripol  #polyethylene  #polypropylene  #ethane  #lpg 

PJSC Nizhnekamskneftekhim (NKNKH), part of the SIBUR petrochemical holding, has successfully completed construction and initiated commissioning of its new EP-600 ethylene plant in Nizhnekamsk, Tatarstan. Construction concluded in December 2024, marking a major milestone for both the company and the Russian petrochemical industry.

Key Project Highlights

• Construction Completion: The EP-600 complex, the largest petrochemical expansion in Tatarstan’s modern history, was finished in December 2024 after four years of development.
• Startup and First Ethylene Production: In January 2025, the plant received its first tons of ethylene as part of commissioning activities, with commercial-grade ethylene already delivered to downstream consumers at Nizhnekamskneftekhim and Kazanorgsintez.
• Capacity Expansion: EP-600 doubles Nizhnekamskneftekhim’s ethylene production capacity, adding 600,000 tonnes per year. The facility can process 1.8 million tonnes of straight-run gasoline annually, also producing over 270,000 tonnes of propylene, 245,000 tonnes of benzene, and 88,000 tonnes of butadiene.
• Downstream Integration: The new complex enables expanded output of premium polymers and chemicals, including: 300,000 tpy of metallocene polyethylene, 250,000 tpy of polystyrene, 350,000 tpy of ethylbenzene, 400,000 tpy of styrene and 50,000 tpy of hexene.
• Investment and Technology: The project represents an investment of about 200 billion rubles. Notably, commissioning was managed using in-house expertise-without reliance on foreign licensors or vendors-demonstrating SIBUR’s growing technical independence.
• Environmental Standards: EP-600 incorporates advanced environmental solutions, including CO₂ emissions 10% below the best available technologies, and nitrogen oxide emissions significantly lower than both Russian and European standards.

Strategic Significance

The EP-600 project is central to SIBUR’s and Nizhnekamskneftekhim’s strategy for expanding Russia’s chemical and petrochemical complex through 2030. The facility’s products will support both existing and new production chains, boosting the development of the Volga petrochemical cluster and stimulating further investment in high-value polymer processing in the region.

Next Steps

• Ramp-Up: The plant aims to reach full design capacity by the end of 2025.
• Further Expansion: With EP-600 as a foundation, SIBUR is advancing additional projects, including new hexene, ethylbenzene, styrene, and polystyrene units, as well as premium metallocene polyethylene production. Construction of these downstream facilities is scheduled to begin in 2025, with commissioning targeted for 2028.

With the successful completion and startup of EP-600, Nizhnekamskneftekhim and SIBUR have reinforced their leadership in Russia’s petrochemical industry, laying the groundwork for further growth and innovation in the sector.

#sibur  #nizhnekamskneftekhim  #kazanorgsintez  #ethyleneplant  #steamcracker  #russia 

PJSC "Nizhnekamskneftekhim" has been created.


#Nizhnekamskneftekhim  #sibur  #russia  #rubber  #ethyleneplant  #steamcracker 

ISAB Refinery @ ISAB

Italy’s largest oil refinery, the ISAB complex in Priolo, Sicily, is facing a deepening crisis just two years after its high-profile sale by Russia’s Lukoil. The facility, which accounts for roughly 20% of Italy’s refining capacity and directly employs about 1,000 people, has become a flashpoint for the challenges facing Europe’s energy infrastructure in the wake of the continent’s break with Russian energy supplies.

The ISAB refinery was sold in 2023 to G.O.I. Energy, a Cyprus-based private equity firm, in a deal backed by global commodity trader Trafigura. The transaction, finalized under intense pressure from European sanctions that cut off Russian crude supplies, was orchestrated with the involvement of Israeli magnate Beny Steinmetz and received last-minute approval from the Italian government. As part of the agreement, Trafigura was to supply crude oil and handle product off-take, ensuring the plant’s continued operation after the loss of Russian feedstock.

However, the arrangement has since unraveled amid internal shareholder disputes and mounting financial pressures. Greek shipping tycoon George Economou, through his Argus New Energy Fund, emerged as the main financier and majority shareholder behind G.O.I. Energy, though the ownership structure remains opaque and subject to ongoing legal wrangling. Economou has argued that the supply and off-take deal with Trafigura is overly favorable to the trading group, allowing it to profit while the refinery itself operates at a loss. These tensions have been exacerbated by the refinery’s reliance on expensive international crude sources and the need to restructure debt under court supervision.

The crisis at ISAB has far-reaching implications for Italy’s energy security. The refinery’s output is critical not only for Sicily but for the entire country, supplying about a fifth of Italy’s fuel needs and supporting an estimated 8,500 indirect jobs in the region. The Italian government, which approved the sale with strict conditions to maintain employment and environmental standards, now faces renewed pressure to intervene as the facility’s viability comes into question.

Broader industry trends are also at play. As Europe pivots away from Russian energy, asset-backed partnerships between private equity and commodity traders have become more common, but the ISAB saga highlights the risks of such arrangements when shareholder interests diverge. For Italy, the fate of the Priolo refinery is not just a local issue but a test of how strategic energy assets will be managed in an era of fragmented supply chains and geopolitical volatility.

With negotiations ongoing and the possibility of new partners or government intervention on the table, the future of the ISAB refinery remains uncertain. What is clear is that Italy’s efforts to secure its energy independence from Russia have come at a high cost, exposing vulnerabilities in both ownership structures and supply logistics that will shape the country’s energy landscape for years to come.

#isab  #isabcomplex  #isabrefinery  #italy  #sicilia  #goienergy  #goisrl #russiancrude #trafigura 

SiburTyumenGas JSC description has been updated.
No gas processing plant has yet been created.

#associatedgas #gasprocessingplant  #sibur  #siburtyunmengas  #russia 

The mass balance and polymerization technologies have been updated.

#russia #sibur  #tomskneftekhim  #lyondellbasell  #spheripol  #lupotech 

The description of SIBUR Holding PJSC has been updated.


#sibur  #russia  #siburholding 

Photo: Russian crude oil tanker. Credit: Defense.in

13^th Dec2024 | News aggregation
 
Russian state oil company Rosneft has signed a landmark 10-year agreement to supply 500,000 barrels of crude oil per day to India's Reliance Industries (RIL), marking the largest energy deal ever between the two countries. The agreement, valued at approximately $13 billion annually at current prices, represents 0.5% of global oil supply.

Under the terms of the deal, Rosneft will deliver 20-21 Aframax-sized cargoes of various Russian crude grades and three cargoes of fuel oil monthly to Reliance's Jamnagar refining complex, the world's largest, in Gujarat. The supplies are scheduled to begin in January, with an option to extend the agreement for an additional 10 years.

The pricing structure includes differentials to Dubai crude prices, with Russian Urals crude, which makes up the majority of the supply, to be priced at a $3 per barrel discount. Light sweet grades like ESPO, Sokol, and Siberian Light will carry premiums ranging from $1 to $2 per barrel.

This agreement significantly expands the existing relationship between the two companies. From January to October, Reliance had been importing an average of 405,000 barrels per day of Russian oil, an increase from 388,500 barrels per day during the same period last year. The new arrangement will account for approximately half of Rosneft's seaborne oil exports from Russian ports.

The deal was approved during Rosneft's board meeting in November and both companies will conduct annual reviews of pricing and volumes to account for market dynamics.

#russia  #india  #rosneft  #reliance  #jamnager  #refinery  #urals  #crudeoil  #espo  #sokol 

Russian ESPO crude oil has been added.

#russia #espo  #crudeoil 

Bloomberg reports that the price of Russian oil significantly surpasses the price cap established by the G7, intended to curb Moscow's revenue for military actions in Ukraine, indicating substantial non-compliance. According to Argus Media, Russia's primary Urals grade commands around $75 per barrel upon departure from Baltic and Black Sea ports. However, by the time Urals cargoes reach India, the price escalates to $88 per barrel, a mere $3.80 below the benchmark Brent, as per Argus data. Additionally, Russian ESPO crude leaving Kozmino port fetches $84 per barrel, consistently evading the price cap for approximately a year. Further disparities arise as 23% of Russian crude supplies in March were insured against spills and accidents by members of the International Group of P&I Clubs. This indicates that traders could attest that the cargo's value was significantly lower than what Argus had priced Urals at. Moreover, a smaller portion was transported via Greek tankers, all insured by Western insurers.

#india  #russia  #pricecap 

Indian state oil refineries are negotiating with Russian "Rosneft" for oil supplies of about 500,000 barrels per day, reports Bloomberg. These negotiations involve long-term contracts, whereas currently, India primarily purchases Russian oil on the spot, i.e., immediate market. In January, oil deliveries from Russia fell by 4-9% compared to December, down to 1.2-1.3 million barrels per day.

The economic rationale of the Indians for why buying Russian oil at discounts is beneficial for the global market is interesting. India's Minister of Petroleum and Natural Gas Hardeep Singh Puri told CNBC, "The world is grateful to India for buying Russian oil. If we start buying more Middle Eastern oil, the price of oil will not be at the level of 75 or 76 dollars. It will be 150 dollars per barrel."

#india  #russia  #rosneft