Russia's Novatek will Build a New $850 Million Petrochemical Complex in Samara

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). OAO Novatek JSC (Moscow, Russia), a gas producing company, is in the early planning stage for a new petrochemical complex (Plant 1063402) that is to be built in Samara, Russia. The facility will mainly consist of a 400,000 metric ton per year ethylene unit (PEC 81000141), a 400,000 metric ton per year polyethylene unit (PEC 81000144), a 200,000 metric ton per year polypropylene unit (PEC 81000142) and a 100,000 metric ton per year benzene unit (PEC 81000145). Initial investment for the complex is estimated between $850 million to $1 billion.

Currently, Novatek is working on the feasibility study with Linde AG (Wiesbaden, Germany) and obtaining financing from a German consortium of banks that is headed by Commerzbank AG. But, at this time no contracts have been signed.

Novatek's predecessor, OAO Novafininvest was created in 1994 and centered around a pipeline construction company, Kuybyshevtruboprovodstroy. In the late 1990's their investments in oil and gas production companies, as well as mineral licenses, grew which eventually gave reason, in 2003, to change the name to Novatek to reflect the diverseness of the company. Today, Novatek is the leading independent gas producer in Russia, producing 20.4 billion cubic meters of natural gas in 2003, but it is second in overall gas production under Gazprom, the state owned gas producer; see related Industry Alert titled Gazprom Selects E&C Firm for New Polyethylene Plant in Russia (http://www.industrialinfo.com/showNews.jsp?newsitemID=44069).

Novatek's plans for the future include everything from downstream chemical production units to finished products, such as plastic pipes, insulation materials, and packaging products.