Tatarstan's oil, gas and petrochemistry obtains record investment in 2008

The Tatarstan’s oil, gas and petrochemical industry accounts for nearly two thirds of industrial investment. The Tatneftechiminvest Holding’s general director Rafinat Yarullin said in a report at an annual shareholders’s meeting that in 2008 investments in the industry had totalled a record figure of 64.7 billion roubles. One third of the amount has been disbursed in oil refining.

Tatarstan implemented some significant investment projects. Commercial production of polycarbonate, high-octane number petrol components, plastic and rubber items was rolled out. A polyethylene plant and the third polystyrene line were put into operation, the monomer and resin capacities increased. In June this year, commissioning of a solid metal cord tyres project is to take place, while in September first products are to be delivered.

Investment in the Taneko oil refining project in 2008 totalled 32 billion roubles. By the end of October, the construction of a pipeline and reconstruction of an oil product line, funded by Russia’s Investment Fund, is scheduled to be completed. The project’s participants are local companies, while the creation of 5 thousand jobs, the reports said, was a substantial support for the Tatarstan’s construction sector.

The Tatarstan’s industry and trade ministry, jointly with the holding, is involved in establishing an engineering centre with a base at Taneko. The purpose of the project is to combine the potential of the local design institutes, and of the technology, equipment and metal structures manufacturers. A task force, to devise a concept for the engineering company and to monitor investment projects for a more extensive use of local manufacturing potential, is nearly formed.

Last year, the holding company, along with smaller oil companies, prepared a feasibility study for the third oil refinery. After it was debated, the decision was made to increase the Taneko’s capacity to 14 million tonnes, which should allow to considerably reduce investment costs.

The holding company focuses on developing the gas chemistry sector as well. A falling foreign demand for gas makes attractive processing it into chemical products with high added value. Tatarstan, said Mr Yarullin, has got a unique chance to become an advanced gas chemistry centre. By 2012, a state-of-the-art mineral fertiliser plant is to be constructed in Tatarstan’s Mendeleyevsk, the first one in Russia over the last 30 years. The project participants signed a memorandum of understanding. Negotiations are underway with Japanese banks, other than with Russia’s Vnesheconombank, on financing the project.

The construction of an olefin compound in Nizhnekamsk, presented at a holding’s board meeting in December 2008, is just as important for Tatarstan. Implementing the projects is to increase the exported items’s competitiveness.

In 2008, Tatarstan completed its second programme of the oil, gas and petrochemistry industry development. Over the time of its implementation, a highly-effective complex of production companies, nearing the global standards, was built. Along with that, enhancing the processing remained an invariable concept.

One more programme, as ambitious, was devised, reported the Tatneftechiminvest Holding’s director. The altered situation on the global markets has however demanded significant adjustments to it. According to Rafinat Yarullin, projects scheduled tot be implemented within it, remain relevant during the depression period, and are to be continued when more certainty arises.