Russia: Gas Supply Sibur and Gazprom Sign Ethane Supply Agreement

Editor: Alexander Stark

Sibur and Gazprom entered into a preliminary agreement for the supply of ethane from Gazprom’s Amur Gas Processing Plant (GPP) to Sibur's Amur Gas Chemical Complex (GCC).

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Sibur and Gazprom sign a preliminary agreement to supply ethane to the Amur GCC
Sibur and Gazprom sign a preliminary agreement to supply ethane to the Amur GCC
(Source: Sibur)

Sochi/Russia — Pursuant to the preliminary agreement, Gazprom will annually supply approximately 2 mt of ethane fraction to the Amur GCC under the formula pricing arrangement.

Gazprom’s Amur GPP will treat the natural gas intended for China and also produce liquefied petroleum gas, pentane-hexane fraction, helium and ethane fraction. Sibur, in turn, is planning to build the Amur GCC with an annual capacity of about 1.5 mt of polyethylene, which will be technologically linked to the GPP and engaged in the processing of ethane and production of monomers and polyethylene grades enjoying Russian and global demand.

The agreement was signed by Dmitry Konov, Chairman of the Management Board of SIBUR Holding, and Valery Golubev, Deputy Chairman of the Management Committee of Gazprom.

According to Sibur, this partnership will foster the creation of the largest gas processing and gas-chemical cluster in the Amur Region to boost the economic and social development of the entire Far Eastern Federal District. The cluster will enable the processing of the hydrocarbon feedstock from the Amur GPP into in-demand, high added-value products.

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