Russia: AGCC Project Funding Secured One of the World’s Largest Polymer Production Plants is Set for Completion
The Amur Gas Chemical Complex has recently secured the funding for its project completion. Now, the worldscale project will be completed on schedule and will provide the additional supply of polyethylene and polypropylene to markets around the world.
Moscow/Russia – Amur Gas Chemical Complex (AGCC) has agreed and signed loan documents to finance the completion of AGCC’s construction. AGCC will act as the borrower; Sibur and Sinopec will be sponsors proportional to their stakes (60/40, respectively) in the joint venture (JV).
Upon completion of standard conditions precedent, AGCC will begin to draw on the loan which will total 9.1 billion dollars and has a final maturity of 2035. Project costs in excess of 9.1 billion dollars will be covered by the JV parties pro rata.
The credit facilities are provided by international banks under coverage from Italian (SACE) and German (Euler Hermes) export credit agencies and also from Chinese and Russian banks on a commercial basis. The total amounts of ECA-backed and commercial credit facilities will equal 2.6 billion dollars and 6.5 billion dollars, respectively.
The Amur GCC is set for launch in 2024 and will produce 2.3 MM tons of polyethylene and 400,000 t/a of polypropylene, processing gas fractions from Gazprom's gas processing plant. The project is set to contribute much-needed additional supply of polyethylene and polypropylene to global markets to address the needs of modern consumers.