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Rosneft mulls buying crude for planned Far East petrochemical plant

Increase font size  Decrease font size Date:2013-07-03   Views:568
Rosneft mulls buying crude for planned Far East petrochemical plant
Russia's Rosneft is considering the possibility of buying crude on theinternational market to supply a planned refinery and petrochemicals complexin Russia's Far East, CEO Igor Sechin told reporters Friday.

"We don't need to pump all the volumes through the pipeline [from thewest of the country]," Sechin said on the sidelines of the St. PetersburgInternational Economic Forum.

"We can supply crude from the Asia-Pacific region," he said, in responseto a question from Platts.

"Corresponding sea terminals will be planned," he said.

Rosneft is considering building the complex with a maximum throughputcapacity of 24 million mt/year of crude, Sechin said.

Total capacity, including the petrochemical element, could reach up to30 million mt/year, he added.

Sechin said that Rosneft expects there to be demand for petrochemicalproducts in the Asian markets.

"There is the possibility of producing products with high margin, thereis a market there," he said.

But supplies of crude to the complex are likely to experience abottleneck. The capacity of the East Siberia-Pacific Ocean pipeline, throughwhich Russia deliveries its new export blend ESPO to international markets,is 600,000 b/d.

There are plans to boost the line's capacity to 1 million b/d, but itwould still not be enough for supplies to a petrochemical complex of suchscale, given Rosneft's plans to boost exports to China drastically.
 
 
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