Ruslan Shigabutdinov: “The olefin complex meets the development strategy of the Russian petrochemical industry”

Selected from 29 applicants

The project to build the olefin complex with a capacity of 600,000 tonnes a year started in June 2017, when a memorandum of strategic cooperation was signed between TAIF Group and German Linde AG at the St. Petersburg International Economic Forum. Also, as part of the document, Nizhnekamskneftekhim PJSC and Linde Engineering's division signed a basic agreement for the design, supply of equipment and provision of services for commissioning the first stage of the future olefin complex — the construction of an ethylene production facility with a capacity of 600,000 tonnes a year.

“At the moment, we already have project documentation, which received a positive conclusion from the main environmental expertise. We are currently at the stage of transferring this documentation to Glavgosekspertiza (Main Department of State Expertise). At the end of all procedures and after obtaining a construction permit, we plan to enter the industrial site for construction works," said Azat Bikmurzin, the director general of Nizhnekamskneftekhim PJSC.

There were almost three dozen applicants for the right to participate in the construction of the new complex. The geography — the whole world: Russia, India, China, South Korea, Japan, Turkey. All companies have extensive experience in implementing large industrial projects.

“At the initial stage, there were 29 bidders. At the last stage, there were already four companies left that have actually submitted a full package of documents. On equal conditions, the choice fell on the company Gemont," explained the director general of Nizhnekamskneftekhim PJSC.

Long-standing collaboration

Gemont has been known for a long time in Tatarstan. To date, it has been already implemented a number of major projects, including the Turkish contractor was engaged in the construction of facilities at TAIF-NK PSC, performed works on the construction of structures and the installation of equipment at the Heavy Residue Conversion Complex (HRCC).

Gemont received the new contract by offering the best conditions, optimal terms and prices for the execution of the contract. The contract was signed at the headquarters of TAIF PSC in Kazan in the presence of Director General of TAIF PSC Ruslan Shigabutdinov, Chief Adviser to TAIF CEO for Development Albert Shigabutdinov, and Chairman of the Board of Directors of Gemont Sadik Akman. The document was signed by Azat Bikmurzin, the director general of Nizhnekamskneftekhim PJSC, and Muhittin Aktas, the member of the board of directors and director general of Gemont LLC.

“Gemont, along with other companies, participated in the tender and won in all respects. The terms of the contract satisfy both Nizhnekamskneftekhim PJSC and TAIF Group, as well as Gemont. I am sure that in close cooperation we will implement this project as soon as possible," Azat Bikmurzin said immediately after the signing ceremony.

In 2021, 6,000 people will work on the construction site

“Today's signing of the contract is another milestone in the life of this project. The licensor is Linde, Germany. Now we have selected the builders — Gemont company. Local organizations will be actively involved in the process. In fact, the Ethylene 600 project is the doubling of Nizhnekamskneftekhim's capacity. Moreover, this is not just new pyrolysis facilities, but the pyrolysis of liquid raw materials, which is a much more complex technology than gas pyrolysis. The contractors promise that we will see the effect of the project quickly enough.

Doubling the capacity of Nizhnekamskneftekhim PJSC will open up new opportunities for updating and expanding the product line. This will be a significant contribution to the budget of the Republic of Tatarstan and the budget of the Russian Federation. This work fully fits into the TAIF Group's development strategy and the Russian petrochemical industry development strategy and takes into account the recommendations of Russian President Vladimir Putin. TAIF Group has always had an innovative approach to serious projects. I think this is not a final project, but a significant, serious part of the overall strategy of the group of companies," Ruslan Shigabutdinov expressed his opinion.

“We have now signed a major contract. We are starting to implement it in the shortest possible time and at a very high pace. The work will last 3 years and will be carried out both by the Turkish side and with the help of local companies. In particular, by the middle of 2021, the number of employees on the site will be about 6,000. This is a very important project, and we want to contribute to the development of the economy of the Republic of Tatarstan by implementing this project as quickly as possible and with high quality," Muhittin Aktas told the reporters.

Sadik Akman stressed that TAIF Group's choice of Gemont as a contractor for this project clearly demonstrates the high level of trust between the companies. For their part, the Turkish builders will do everything possible to justify it:

“It is obvious that the implementation period may even be reduced. Our previous project was completed in 24 months with a planned timeframe of 30 months. We can build the same strategy for this project to complete it 6 months earlier. A lot depends on the quality of interaction between the contractor, the designer, and the customer," Mr Akman said.

He confirmed that Gemont plans to actively involve local construction companies. He also stressed that the company will bring its specialists from Turkey to implement the most important areas of work — welding, installation of metal structures and technological pipelines, etc.