SIBUR and Salavatnefteorgsintez Set up Joint Venture

Salavatnefteorgsintez OJSC and SIBUR Holding OJSC have signed a Memorandum of Understanding in which they state their intention to create a joint venture under the name Salavat Petrochemicals Complex LLC (SPCC). According to the Memorandum, the SPCC project will be implemented on a parity basis. The new enterprise will be located at Salavatnefteorgsintez’s production site and will be run by a joint project team.

It is anticipated that SPCC will become a major industrial complex, including large-volume production of lower olefins (ethylene, propylene) through pyrolysis of straight-run gasoline and liquefied hydrocarbon gases, with further processing of olefins and side products of pyrolysis into marketable petrochemicals, such as polyethylene, polypropylene, ethylene glycol, benzene, and butadiene.