PJSC Gazprom and PJSC SIBUR signed a preliminary contract for ethane fraction supplies from the Amur GPP

The document outlines the basic terms of future product supplies from Gazprom’s Amur Gas Processing Plant (GPP) to SIBUR’s planned Amur Gas Chemical Complex (GCC). Specifically, the total guaranteed supplies of ethane fraction will amount to some 2 million tons per year. The pricing formula will be agreed by the parties to the contract.

Background Information

Gazprom’s Amur GPP will become Russia’s largest natural gas processing plant and one of the biggest globally. It will have a design capacity of 42 billion m3/yr of gas. The plant will have six production lines, each with the annual capacity of 7 billion m3/yr of gas. Two process lines will come online in 2021, while the other four will be consecutively put in operation before the end of 2024 Thus, the GPP is expected to reach its design capacity by 2025. In addition to natural gas, the Amur GPP will produce ethane, propane, butane, pentane-hexane fraction, and helium.

SIBUR, in its turn, plans to build the Amur GCC, which will be technologically connected to the GPP, to process ethane, extract monomers and, subsequently, produce approximately 1.5 million tpy of polyethylene grades for Russian and international markets.