Russian Gas Regulation Sparks Petchem Plans at Sibur

A law passed recently by Russia’s President Vladimir Putin to reduce the country’s flaring of gas is likely to spark a wave of petrochemical projects throughout the country, particularly by Sibur (Moscow), the petchem subsidiary of Gazprom (Moscow), sources say. Russia produces 55 billion cu meters/year of associated petroleum gas (APG) with the extraction of crude oil, of which about 36% is flared. Putin has decreed that 95% of Russia’s APG output must be used by 2011 and only 5% flared. Russian APG output is expected to rise to 60 billion cu...

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