Nizhnekamskneftekhim (NKNK, a TAIF Group company) expects to obtain a front-end engineering design (FEED) for a 1 mtpa ethylene plant by the end of summer, Azat Bikmurzin, the company’s Deputy General Director, reported on the conference “Russian and CIS Petrochemicals 2013” in Moscow. “We are developing FEED for the ethylene plant and plan to obtain a comprehensive project documentation package by the end of summer in order to commence expert review”, he said. As announced earlier, FEED for the ethylene plant is developed by an international engineering company Chicago Bridge & Iron Company. The next stage will be selection of the project financing options. Project documentation for olefin production facility is supposed to be completed in spring 2014, Mr. Bikmurzin added.
It is mentioned in Nizhnekamskneftekhim’s materials that “during 2013 NKNK expects to have a precise cost of the olefin plant, conduct the due diligence for the lenders and launch the financing transaction.” Last year, NKNK made a decision with regards to the project licensors having entered into agreement with Lummus for ethylene production (1 mtpa capacity), as well as with Ineos for polyethylene (600 thousand tpa capacity) and Basell — for polypropylene (400 thousand tpa capacity).
Azat Bikmurzin reminded that the plant’s start-up is scheduled for 2017. That said, first of all, polyethylene and polypropylene plants were launched for test run, and only then - the ethylene plant.
At the time being, NKNK’s capacity for ethylene production accounts for 600 thousand tpa. The implementation of the project will result in bringing the ethylene production capacity up to 1.6 mln. tpa. The company plans to put the new plant in operations in 2017. The estimated cost of construction is USD 3 billion.