PJSC SIBUR Holding is in talks with the state-run Indian Oil Corporation (IOC) over a partnership under which the firms will set up a major petrochemical facility in India. PJSC SIBUR Holding is Russia’s largest integrated petrochemicals company.
The move comes in the backdrop when India and Russia are forming collaboration in multiple sectors which include petrochemicals, energy sourcing and supplies, and other upstream investments in both the countries.
The growing Indian energy market seems to be the attraction for the Russian energy major which is of the view that Indian market has large potential and will remain beneficial in the long run.
IOC is also expanding its operations in collaboration with domestic partners. Recently, it has signed a pact with the Government of Gujarat for setting up petrochemical and lube integration project coupled with an acrylic and oxo alcohol project at its refinery in Vadodara.
As per ChemAnalyst, “India with increasing demand for petrochemicals is aiming at increasing its petrochemical refining capacity from the current capacity of around 250 million tons to over 400 million tons till 2025. SIBUR will be looking forward to encashing this growing potential in the Indian market with the eased Foreign Direct Investment norms by the Indian government. SIBUR reported around USD 7.2 billion revenue in 2020 and already has presence in India.”