Nizhnekamskneftekhim to double ethylene capacity in Russia

Nizhnekamskneftekhim (NKNK), one of the leading petrochemical producers in the Russian Federation, is moving ahead with a 600,000 t/y ethylene investment at its site in the Republic of Tatarstan. The project will double ethylene capacity at the Nizhnekamsk site, adding a new steam cracker alongside the existing facility. Construction work is expected to start during 2H2018, with commissioning slated for mid-2022.

According to consultancy Wood Mackenzie, NKNK’s product portfolio is geared towards synthetic rubbers and plastics. In recent years, modernisation of the existing 600,000 t/y liquids-based steam cracker has taken place. This has included furnace uprating to handle a wider range of feedstocks, such as LPG.

Commenting on the news, Wood Mackenzie Principal Analyst, Patrick Kirby, says: ‘Major financing for the project, which will be situated adjacent to the existing operations, was formalised with Deutsche Bank in May 2018 at the St Petersburg International Economic Forum. A further 600,000 t/y could be added in the future as a phase 2 project. The new facility will be based around naphtha feedstock. Due to export taxes applied to this refined product in the Russian Federation, domestic naphtha cracking can be highly competitive relative to other regions such as Europe/Asia on an ex-works basis.’

The project is understood to be the first naphtha-based capacity expansion in Russia during the recent build of capacity. Other new ethylene plants under construction at Tobolsk and Novy Urengoy are based around NGL feedstock (ethane/propane/butane).