News Code : 43364

Petrotahlil :Russian giants, Sibur and Gazprom signed a preliminary feedstock supply agreement today for Sibur’s proposed polymer production unit in Amur, in Russia’s Far East.

Based on the agreement, Gazprom will supply 1.5 million tonnes per annum (mtpa) of liquefied petroleum gas (LPG) from its gas processing plant in Amur to Sibur’s chemicals facilities integrated at the site. Gazprom had previously agreed with the supply of 2mtpa of ethane fraction to Sibur’s proposed plant.

Scheduled for commissioning in 2021, Gazprom’s Amur project is billed as Russia’s biggest gas processing plant and will supply LPG, helium and ethane fraction to Asia. 

With the supply agreement, Sibur said it could raise the output of its proposed plant significantly, from 1.5 million tonnes per annum (mtpa) of polyethylene to 2.3mtpa. In addition, Sibur will produce 400 kilotonnes per annum (ktpa) of polypropylene at the site.

Sibur expects to make a final investment decision for the project by the end of the year, the company announced 5 Sept. 

“The signing of the agreement opens up an opportunity for us to increase the amount of hydrocarbon feedstock to be processed in Russia,” said Dmitry Konov, chairman of the management board at Sibur Holding, who signed the deal during the ongoing Eastern Economic Forum in Vladivostok.

“If we opt for an extended version of the project, LPG will be processed domestically instead of being exported, thus providing additional feedstock for related industries and enabling us to manufacture more high-tech export-oriented products.”

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