Gazprom Selects E&C Firm for New Polyethylene Plant in Russia

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Researched by Inudtrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Tecnimont SpA (Milano, Italy) has been selected by Gazprom (Moscow, Russia), the largest gas producing company in the world, to construct a new polyethylene plant in Salavat, Russia (PEC 81000140). Using the Hostalen process technology, licensed by Basell (Hoofddorp, The Netherlands), the $80 million plant will produce 120,000 metric tons a year of high-density polyethylene. Current planning has construction slated to begin in the fall of this year and a completion date of mid 2006.

As Russia continues its transition into a capitalist free market, successful companies are able to expand their production areas and products. Gazprom was formed in February 1993 under the decree of the President of the Russian Federation and within five years became an open joint-stock company with the Russian government retaining 38% of the shares maintaining it as the majority shareholder. Gazprom contributes 8% to the Russian GDP and produce 90% of Russian gas controlling 60% of the gas reserves. Gazprom also produces 50% of all electricity produced in Russia.

Basell is the world's largest polypropylene and advanced polyolefins products producer. The Hostalen process was developed in 1965 by professors Karl Ziegler and Giulio Natta, recipients of the Nobel Prize in 1963. Basell is a joint venture, formed in October of 2000, that is equally owned by BASF and Shell. Basell also licenses other polyolefin process technology including Spheripol (polypropylene), Spherizone (polypropylene), Lupotech T (high density polyethylene), Lupotech G (linear low density polyethylene), and Spherilene (swing process for linear low density and high density polyethylene).