Refining and Petrochemicals in Russia's Far East To Grow 20%

August 14, 2013

The level of refining of natural resources in Russia's Far East will grow 20% over the next several years, Viktor Ishayev, the representative of the Russian President in the Far East District and head of the Russian Far East Development Ministry, said.

The government is planning several large oil and gas investment projects in the Far East over the next several years. "According to our calculations, Gazprom alone has projects worth 3.3 trillion roubles. To carry them out, power and transport infrastructure need to be developed. The petrochemicals industry will become a serious factor in modernizing the economy", Ishayev said.

Ishayev also said that he was not talking about a sharp increase in hydrocarbon production. He said the emphasis would be placed on refining natural resources.

"Oil production in the Far East will remain at approximately its current rate in the coming years, but the level of refining should grow by 20%. Then, according to our calculations, tax revenue will increase at least 50%", Ishayev said.

Ishayev also commented that developing petrochemicals in the region would make it possible to diversify the fuel balance in the Far East. Specifically, it would increase the production of motor fuels, he said.

The representative's press office said that hydrocarbon industries would primarily be developed based on raw materials from the Leno-Tungusskaya and Leno-Vilyuyskaya oil and gas provinces as well as the shelf of the Okhotsk Sea. "Gas is fairly expensive in Yakutiya as it contains helium. But forecasts predict that demand for helium will rise three to four fold by 2030. We are directing work to refine it and use it. Development of the petrochemicals industry should begin with fields in Yakutiya", Ishayev stressed.

Copyright: Samotlor Express , 2013г.