Sibur raises funds for Tobolsk petchem project

Moscow – Sibur has attracted a number of local and international investors for its ZapSibNeftekhim project – an integrated petrochemical complex in Tobolsk, Tyumen region, Russia.

On 4 Dec, said the Russian petrochemical company, ZapSibNeftekhim completed the placement of 15-year bonds worth $1.75 billion (€1.59 billion) on behalf of the ministry of finance of the Russian Federation for this project.

The investors include the Russian direct investment fund (RDIF) as well as a number Middle Eastern sovereign wealth funds, said Sibur.

Total investment in the project amounts to $9.5 billion.

Describing it as its largest investment project, Sibur said the funds would be used to develop industrial infrastructure for a forthcoming facility for production of polyolefins.

ZapSibNeftekhim, said Sibur, is expected to be “the largest modern petrochemicals facility in Russia” and will include the construction of a steam cracker with a capacity of 1.5 mtpa of ethylene, about 500 ktpa of propylene and 100 ktpa of butane-butylene fraction (BBF) per year.

According to Sibur, there will also be units producing various grades of polyethylene and polypropylene with a total capacity of 2 mtpa per year.