The photo is sourced from the TASS stock
“In the long-term perspective, though this is open to dispute, consumption of gasoline for vehicles is expected to decline. And electric vehicles will take their place”, Borisov told a plenary session of the Forum.
“It is therefore strategically correct to seek a blended focus of our oil refineries, moving towards chemical production. We don’t have such production at the moment. So we are talking about creating a new approach for oil refineries to factor in assets of oil gas chemistry.“
“I see this as a serious trend and a challenge. Orienting oil refineries towards petrochemical production is a world-wide trend. There are practically no oil refineries world-wide now without an integrated petrochemical complex. In many developed countries, petrochemical capacity at refineries can reach 25 to 30 % of total production and in some facilities up to 50-60 %. This means sustainability for the sector.”
Adopting such an approach can significantly increase production of strategic petrochemical products, including propylene – the principal raw material for complex petrochemicals.
Against this background, the government should support the production of propylene at refineries by introducing a reverse excise tax.
“Why propylene? Nearly all propylene produced in Russia is used as a raw material for petrochemicals on the domestic market. And a wide range of propylene derivatives comes to us primarily from abroad. That means we have a huge, promising market for producers here at home, for refineries and gas chemistry complexes. We believe the government should help occupy this market with our own producers. And one of the most promising measures could be introducing a reverse excise tax on propylene.”