Page 20 - FSUOGM Week 01 2021

FSUOGM INVESTMENT FSUOGM

contribution to the national programme of board at Sibur Holding, said: “Sibur and Sinopec
growing the nation’s non-commodity exports. have a long track record of jointly delivering on
Given the facility’s geography, its products will be large-scale investment projects and implement-
targeting Asian markets, primarily China, which ing advanced production technologies. Creating
is the largest consumer of polymers globally. The a joint venture is a major milestone in our Amur
Amur GCC project is expected to be included GCC project. With Sinopec’s involvement, we
in an intergovernmental agreement between will be able to maximise the project’s efficiency,
Russia and China,” the company said in its press in particular optimising and balancing the facili-
release. ty's future debt portfolio, while also enhancing its
In keeping with the ongoing move towards expertise in distribution across Asian markets.”
environmental, social and governance (ESG) Zhang Yuzhuo, chairman of Sinopec, added:
compliant production, Sibur stressed the project “Amur GCC is a milestone in the co-operation
would follow the highest global environmental between Sinopec and Sibur, and will also become
and technology standards, in particular through a model for Sino-Russian energy co-operation
its reliance on renewable energy sources. to extend to the downstream chemical industry.
Amur GCC’s construction budget is tenta- The success of Amur GCC will inject new impe-
tively estimated at $10-$11bn and is subject to tus into advancing the high-quality co-operation
adjustments as the project progresses. In Decem- between the two countries in the fields of energy,
ber, Amur GCC attracted $1.5bn in bridge chemical industry, investment, economy and
financing from a syndicate of Russian banks. trade and play a positive role in effectively pro-
Gazprombank acted as the lead arranger and moting the sound interaction of domestic and
lender, with Otkritie and Sberbank as arrangers international markets as well as the economic
and lenders. development, employment and social well-being
Dmitry Konov, chairman of the management of the Far East region.” ™

PERFORMANCE

Russian oil output in 2020 falls

for first time in 12 years

RUSSIA RUSSIAN oil production fell last year for the first this month, with Russia expected to account for
time since 2008, on the back of OPEC+ cuts and 125,000 bpd of this increase. The group held
National gas production weak demand due to the coronavirus (COVID- talks on production policy on January 4.
fared better. 19) pandemic. Russian oil exports dropped 12.7% to
Crude oil and gas condensate output aver- 232.5mn tonnes (4.67mn bpd) in 2020, accord-
aged 10.27mn barrels per day (bpd) during the ing to the energy ministry, while domestic sup-
year, according to energy ministry data cited ply slid 5.2% to 274.9mn tonnes (5.52mn bpd).
by Interfax. In terms of tonnage, production Production of gasoline was down 4.5% last year
dropped to 512.7mn tonnes in 2020, from a at 38.4mn tonnes, and diesel by 0.5% to 78mn
post-Soviet high of 560.2mn tonnes in the pre- tonnes. Russia produced 10.9% less fuel oil, sup-
vious year, or 11.25mn bpd. plying 40.9mn tonnes.
Production last year was at its lowest level Restrictions put in place to slow COV-
since 2011, when it amounted to 511.4mn ID-19’s spread hit demand for jet fuel and
tonnes. The result also marked the first annual motor fuels hard. Gas consumption has fared
decline in Russian extraction since 2008, when better, although the International Energy
producers cut back supply in the face of the Agency (IEA) estimates it still contracted for
global financial crisis and plummeting oil prices. the first time in modern history in 2020. Rus-
The reduction last year was largely in line sian gas production totalled 692.3bn cubic
with expectations. Russia pledged in April to metres last year, down 6.2% from a record 738
take over 2mn bpd of supply offline as part of bcm in 2019.
historic OPEC+ efforts to rebalance the market. Coal also saw a significant decline in demand
Cuts were eased by 500,000 bpd in August. last year owing to the COVID-19 crisis, causing
The OPEC+ alliance is set to release a further Russian production to drop 9.2% to 401.4mn
500,000 bpd of oil back onto the market starting tonnes. ™

P20 www. NEWSBASE .com Week 01 06•January•2021