A deadly fire at Russia's $12bn Amur Gas Chemical Complex has thrown uncertainty over the imminent launch of a massive new polymer export stream destined largely for Asian markets via Russian Far East ports, according to Splash247. Seven people, including six Chinese nationals, were killed and more than 130 injured in Tuesday's incident at the Sibur-Sinopec project near Svobodny in Amur Oblast.
Incident details
The fire occurred on an auxiliary section of the complex's pyrolysis unit while commissioning work was underway, Splash247 reported. The company said preliminary assessments indicated the main equipment had escaped damage. Operations were halted while emergency teams carried out a controlled burn-off of remaining process gases. The cause of the incident remains unclear: Russian authorities have opened an investigation into possible breaches of industrial safety rules, and the company has established its own commission. Splash247 noted there is currently no evidence that Ukraine was involved.
The Amur Gas Chemical Complex at a glance
Amur GCC is 60% owned by Sibur and 40% by China's Sinopec, according to Splash247. Once fully operational, the complex is meant to produce 2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene annually, making it Russia's largest base-polymers facility. Sinopec has previously put total investment at around $11.8bn, while Splash247 reported the project at $12bn.
| Project detail | Data |
|---|---|
| Ownership | Sibur 60%, Sinopec 40% |
| Investment | Around $11.8bn per Sinopec; reported at $12bn |
| Polyethylene capacity | 2.3 million tonnes/year |
| Polypropylene capacity | 400,000 tonnes/year |
| First polyethylene output | Planned this month |
| All PE lines start | By end of 2026 |
| Polypropylene start | 2027 |
| Share exported | More than 90% |
Polymer supply impact
More than 90% of Amur's output is expected to be exported, with Southeast Asia and China the principal markets, Splash247 reported. Sibur has agreements with FESCO and the port of Vladivostok covering the transportation of finished Amur products in containers through Vladivostok to Asia-Pacific destinations. The plant had been preparing to produce its first polyethylene this month, with all polyethylene lines due to start by the end of the year and polypropylene production following in 2027.
Refinery strikes and fuel shortages
Separately, Ukraine's campaign against Russian energy infrastructure intensified overnight with drones striking LUKOIL's Nizhegorodnefteorgsintez refinery at Kstovo, Splash247 reported. Explosions were followed by a large fire. The refinery, one of Russia's largest, has capacity to process around 17 million tonnes of crude annually and produces gasoline, diesel, aviation fuel and lubricants. The latest refinery strike comes as fuel shortages across Russia become increasingly acute: petrol availability reportedly fell to just 28% of filling stations last week, with rationing and purchase restrictions spreading across numerous regions. Moscow has also extended restrictions on diesel exports as repeated refinery attacks squeeze domestic supplies.
Outlook
The fire throws uncertainty over the imminent launch of the polymer stream, with the location making the timeline question particularly intriguing, Splash247 noted: Amur lies roughly 6,000 km from Ukraine, and if Ukrainian involvement were eventually established, it would represent an extraordinary extension of Kyiv's reach. For now, the investigation into possible breaches of industrial safety rules and the company's own commission will determine the path forward, while the complex's planned polyethylene and polypropylene output remains central to Russia's polymer export ambitions.
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