Gazprom and SIBUR sign documents on development of cooperation in the field of gas processing and gas chemistry
Alexey Miller, Chairman of Gazprom Management Board, and Dmitry Konov, Chairman of SIBUR Holding Management Board (on behalf of Amur Gas Chemical Complex LLC), signed a preliminary agreement in Vladivostok today as part of the 5th Eastern Economic Forum.
The document contains the key conditions for long-term supply of liquefied petroleum gases (LPG) and additional volumes of ethane fraction from the Amur Gas Processing Plant (GPP) to the planned Amur Gas Chemical Complex (GCC) of SIBUR. The total volume of raw material supplies according to the preliminary agreement is up to 1.5 million tons annually. Prices will be calculated according to the formulas agreed by the parties.
Thus, taking into account the contract signed by the parties in May 2018 for the supply of ethane fraction (about 2 million tons per year), the total volume of supplies of ethane fraction and LPG can reach up to 3.5 million tons per year.
The expansion of cooperation between the companies will contribute to creation of a large gas processing and gas chemical cluster in the Amur Region and accelerate the social and economic development of the Russian Far East.
Alexey Miller and Dmitry Konov also signed the agreement on cooperation. The parties intend to work out possible cooperation in te implementation of major investment projects in the field of gas processing and gas chemistry in the Volga and Ural Federal Districts.
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Amur GPP of Gazprom will become one of the world's largest natural gas processing plants. Its design capacity amount to 42 billion cubic meters of gas per year. The plant will consist of six production lines, with the first two planned to be commissioned in 2021. In addition to natural gas, the GPP commercial products will include ethane, propane, butane, pentane and hexane fraction, and helium.
SIBUR is working on a project for construction of the Amur Gas Chemical Complex which is technologically connected to the Amur Gas Processing Plant. The increased supply of raw materials will allow SIBUR to expand the design capacity of GCC from 1.5 million tons of polyethylene to about 2.3 million tons of polyethylene and 400 thousand tons of polypropylene.
Enlarged photo (JPG, 417 KB)