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    Gazprom, Sibur Strike Deal On Petchem Feedstock


The added feedstock will enable Sibur to expand the capacity of its petrochemical project.

by: Joseph Murphy

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Gazprom, Sibur Strike Deal On Petchem Feedstock

Russian gas supplier Gazprom has struck a preliminary deal to sell 1.5mn mt/yr of LPG and ethane fraction to the country’s top petrochemicals group Sibur to produce polymers.

The agreement, signed at the Eastern Economic Forum in Vladivostok, outlines commercial terms for supply of the liquids from Gazprom’s 42bn m3/yr Amur gas processing plant (GPP), Sibur said on September 5. Due on stream in 2023, the plant will produce LPG and ethane as well as pentane-hexane fraction and helium as by-products of gas processed. Processed gas will be dispatched to China under a long-term sales contract.

Sibur is developing a nearby gas chemical complex (GGC), and closed a deal with Gazprom on the supply of 2mn mt/yr of ethane feedstock for the project last year. The additional supply agreed today will allow Sibur to expand the facility’s planned production capacity from 1.5mn mt/yr to 2.3mn mt/yr of polyethylene and 400,000 mt of polypropylene.

Sibur is due to take a final investment decision on construction by the end of this year.