Russia’s ZapSibNeftekhim started up PP plant; signed contract with Sinopec to distribute PE output

ZapSibNeftekhim Project, a subsidiary of SIBUR Holding has started up its polypropylene (PP) plant and the prime cargoes are offered in China at $1040/ton based on CFR term earlier this week. 

The PP plant is part of a larger petrochemical complex newly constructed, with a capacity of 500,000 tons per annum. 

Also at the site, ZapSibNeftekhim owns a cracker with an output of 1.5 million tons per year of ethylene and 500,000 tons of propylene. Asides from the PP plant, downstream units include two stand-alone HDPE lines with a combined capacity of 700,000 tons (350,000 tons each) and two HDPE/LLDPE swing lines with a combined capacity of 800,000 tons (400,000 tons each).

In the meantime, SIBUR has signed a distribution contract with China Petroleum & Chemical Corporation (Sinopec) to distribute its PE output to China. The PE plants are scheduled to start up this October.