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«SIBUR» LLC is the managing organization of PJSC «SIBUR Holding».

117218, Moscow, Krzhizhanovsky st., 16/1

The delegation of SIBUR analyzed the achievements of the petrochemical industry

Moscow, May 19, 2010. SIBUR summarized the results of the working visit of the Company’s representatives to the Kingdom of Saudi Arabia and to the Islamic Republic of Iran made for acquaintance with existing petrochemical operations and those under construction.

In Saudi Arabia, SIBUR’s managers visited the world’s largest individual ethylene, polyethylene, ethylene oxide and ethylene glycol capacities. Location of the sites makes allowance for potential increase in capacity, and displays maximum attention to environmental and industrial safety issues. New complexes may use not only ethane but also heavier cuts as raw materials, thus increasing the production capabilities.

Moreover, active construction of new complexes in the Kingdom is carried out with direct state support which manifests itself in development of the industry development strategy, creation of favorable investment conditions, and erection of the required infrastructure facilities. As a result, international companies are attracted to the country, which possess advanced technologies and engineering decisions.

In order to implement petrochemical projects in Iran, free economic zones have been created, special-purpose state-established infrastructure companies supply new operations with electric and thermal energy, and with industrial gases. All that creates favorable conditions for attraction of investors which has resulted by now in construction in the country of the world’s largest complex for production of aromatic hydrocarbons (benzene, toluene, paraxylene).

Engagement in processing of raw materials from nearby Southern Pars hydrocarbon deposit, and location of petrochemical complexes in close proximity to water area of seaports provide the basis for growth of the country’s export potential.

Following the results of the analysis, the visitors noted that the rapid development of the petrochemical industry of the two countries was a good example of organization of rational use of existing natural resources and a direct result of the state support in supply of cheap raw materials, creation of a favorable legal regime, and due attention to infrastructural problems.

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Anna Lebed

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