UpdateRussia's Sibur, Italy's Tecnimont sign propylene deal

03 December 2009 15:18  [Source: ICIS news]

(updates to add detail)

MOSCOW (ICIS news)-- Italy's Tecnimont has signed an engineering, procurement and construction (EPC) contract with Sibur worth €650m ($970m) to build a new 510,000 tonnes/year of propylene facility in Tobolsk, Sibur said in a statement Thursday.

Tecnimont is scheduled to deliver the majority of the equipment to Tobolsk in 2010-2011, it added.

The propylene will be produced through a propane dehydrogenation unit, it said.

The complete project, that also involves construction of a new unit to produce 500,000 tonnes/year of polypropylene (PP), using INEOS technology, is due onsteam in 2012.

Furthermore, Sibur, Tecnimont, Russia's state-run Vnesheconombank (VEB) and Italy's Sace S.p.A. signed a Memorandum of Understanding to finance the complete $2bn Tobolsk project, the company added.

($1 = €0.66)

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