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1 Dec 2020

Belneftekhim estimates investments in petrochemical industry development till 2030 at $8.8bn

Belneftekhim estimates investments in petrochemical industry development till 2030 at $8.8bn
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MINSK, 1 December (BelTA) – Total investments in implementing the strategy designed to guide the development of the Belarusian petrochemical industry till 2030 are estimated at $8.8 billion. Deputy Chairman of the Board of the Belarusian state petrochemical concern Belneftekhim Vladimir Sizov made the statement before the session of the Council of Ministers’ Presidium held on 1 December to discuss the strategy’s implementation and updating, BelTA has learned.

The entire development program for the period till 2030 provides for a total amount of investments as large as $8.8 billion. Financial institutions as well as other sources should get involved in providing assistance with the financing of these deals, Vladimir Sizov said.

About $4.9 billion will be appropriated as proprietary funds while $3.9 billion will be borrowed and raised.

According to Vladimir Sizov, the strategy was put together after risks were evaluated. Belneftekhim believes that risks associated with raw materials are the main ones. Vladimir Sizov explained these risks will be minimized by means of modernization of oil refineries, a higher oil conversion ratio, a higher output of light oil products, the creation of strategic oil reserves, and the modernization of the oil transportation system.

Belneftekhim’s financial risks will be minimized by means of transition to a formula-based pricing practice for crude oil acquisition and sales of ready products, by means of hedging of foreign trade deals and negotiating the most comfortable financial terms with banks.

The official said: “As for the development of the industry, we see the main efforts will be focused on transition to a higher oil conversion ratio. Naftan will be the key enterprise in these efforts. The oil refinery will gradually shift its profile from fuel to petrochemical products.”

A new plant to make ethylene and propylene will be built at Naftan. It is supposed to be commissioned approximately in 2026. It will allow creating new facilities to manufacture high-tech plastics (ABS and polycarbonate). Those are products with a high added value.

Mozyr Oil Refinery is going to focus on fuel products.

Belorusneft is expected to keep oil extraction in Belarus at about 1.7 million tonnes per annum till 2030.

Belorusneft is also in charge of setting up a state-run chain of electric vehicle charging stations and intends to install over 1,300 charging stations all over the country by 2030.

Gomeltransneft Druzhba intends to finish building an oil trunk line between Gomel and Gorki in 2022. It will connect different branches of the national pipeline transport system and will increase the reliability of oil deliveries to Belarusian oil refineries. Gomeltransneft Druzhba will also be responsible for creating a strategic oil reserve.

On the whole, the key purpose of the strategy is to satisfy the nation’s demand for quality oil products and petrochemical products, Vladimir Sizov concluded.

At present Belarus’ petrochemical industry is represented by about 1,600 organizations that employ some 83,000 people or about 10% of all the people involved in industrial production. Enterprises of the Belarusian state petrochemical concern Belneftekhim account for about 70% of the petrochemical industry’s output.

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