• Unique Advantage
  • World-class Petchem Hub
  • Growing Market
  • Environmental Solution



    Long-term access to abundant, stranded raw materials gives SIBUR unique competitive advantages and value drivers

    Western Siberia has an abundant supply of oil and natural gas as well as associated petroleum gas (APG) and natural gas liquids (NGLs), which are by-products of oil and gas extraction. SIBUR operates a vast and unique infrastructure providing energy companies with an efficient solution to monetise these by-products, which represent key raw materials for SIBUR. The economics of processing these feedstocks into energy and petrochemical products are compelling. Our processing solution also delivers environmental benefits by offering energy partners an alternative to harmful on-field flaring.

    SIBUR has long-term contracts and partnerships with oil and gas companies for access to Western Siberian feedstock. This gives us significant competitive advantages to support our global growth strategy and ability to generate strong financial returns.


    Vertical integration supports resilient business performance and strong financial returns

    Our vertically integrated business model – spanning feedstock processing to petrochemicals production – enables us to effectively manage risk while driving profit margins and cash generation well above global petrochemicals industry averages.

    SIBUR is a net seller of energy products, a unique position in the global petrochemicals industry. Our feedstock & energy segment benefits from higher natural gas and oil and oil derivative prices, which historically has more than offset the impact of higher feedstock purchase costs on our petrochemicals segment. Economics of hydrocarbons processing limits exposure to oil & oil derivative price volatility. Lower oil and oil derivative prices have a positive impact on our petrochemicals segment’s cost base, partially mitigating the effect on feedstock & energy revenues.

    The diversification of our feedstock and product portfolio, combined with our technological flexibility, enables SIBUR to change the composition of its feedstock and product mix in response to changing market trends and shifts in demand fundamentals. This balance supports greater financial resilience in times of unfavourable macro conditions and provides a durable foundation for long-term value creation.


    Strategically located assets and most extensive and efficient infrastructure in Russia

    Our unique processing and transportation infrastructure and the strategic location of our assets close to Western Siberian oil and gas fields, give SIBUR an unrivalled long-term competitive advantage. In the past several years we significantly expanded and upgraded our asset base to enhance efficiency and capitalise on the strong demand outlook for our products in Russia and abroad.

    SIBUR owns and operates Russia’s largest and most extensive infrastructure for processing and transporting feedstock, located primarily in Western Siberia. Our eight gas processing plants (GPPs), including one GPP operated under JV, account for more than half of APG processed in Russia. Our transportation infrastructure comprising nearly 2,700 kilometres of pipelines and nearly 23,500 rail cars under management ensures a reliable flow of raw materials across the region’s vast geography.

    SIBUR is also a leader in the Russian petrochemicals industry, operating three steam crackers and an extensive production base across the country. Our world-class integrated polypropylene production complex in Tobolsk launched in 2013 validated SIBUR’s strategy to grow our leadership as a globally cost-competitive petrochemicals producer.


    SIBUR is expanding its leadership in petrochemicals in Russia to drive long-term value

    We are a leader in the Russian petrochemicals industry with strong market share in the majority of our petrochemical products. Current macroeconomic environment creates opportunities for SIBUR to displace imports. We expect to see further import substitution and medium term growth in the Russian market, while demand for basic petrochemical products rises towards levels common in other industrialised and emerging economies.

    SIBUR continues to invest in production capacity, leveraging our feedstock and infrastructure advantages to build a globally cost-competitive petrochemicals business.


    SIBUR is uniquely positioned for long-term growth and value creation

    We leverage our advantageous feedstock access, integrated business model and strong demand fundamentals to ensure long-term profitable growth and maximise shareholder value.

    Our strategy is built on our key priorities:

    1. Monetise feedstock access advantage

      We are making substantial investments in Tobolsk to develop large-scale petrochemicals production capacity near our feedstock base and leverage strong global cost advantages.

      In 2014, SIBUR started execution of the ZapSibNeftekhim (ZapSib-2) project, which is designed to be an ethylene cracking unit and polyolefin production facility in Tobolsk. This multi-year project is a part of longer term growth strategy and will further leverage our feedstock advantage and integrated production efficiencies of our Tobolsk complex.

    2. Capture domestic growth opportunities

      New prospects for displacement of imports with our products enable SIBUR to increase its share of the Russian market. Moreover, Russia’s demand for basic petrochemical products is expected to grow faster than many of the world’s developed economies, making it an attractive market for SIBUR to expand output and displace imports.

    3. Pursue operational excellence

      We pursue operational excellence to enhance our cost advantages, reduce risks and promote the long-term competitiveness and sustainability of our business.







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