15/02/2018
Press release: Gazprom and SIBUR sign preliminary contract for ethane fraction supplies from Amur GPP
Valery Golubev, Deputy Chairman of the Gazprom Management Committee, and Dmitry Konov, Chairman of the Management Board of SIBUR Holding, today signed at the Russian Investment Forum in Sochi a preliminary contract for ethane fraction supplies.
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
Gazprom’s Amur GPP will be the largest gas processing plant in Russia and one of the biggest in the world. It will have a design capacity of 42 billion cubic meters of gas per year. The plant will have six production lines with the annual capacity of 7 billion cubic meters each. Two process lines will come online in 2021, while the other four will be consecutively put in operation before the end of 2024. The GPP is expected to reach its design capacity by 2025. In addition to natural gas, it 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 polyethylene grades for the Russian and international markets in the amount of about 1.5 million tons per year.
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