Russia's Sibur, Lukoil sign five-year gas supply deal

21 March 2011 15:56  [Source: ICIS news]

MOSCOW (ICIS)--Russia's petrochemical holding Sibur and oil company Lukoil have concluded an associated petroleum gas (APG) supply deal, Lukoil said on Monday.

Lukoil will supply Sibur 2.5bn cubic metres (cbm) of APG from western Siberian oil fields from 2011–2015, the company added.

The deal meant Lukoil would double its gas supply to the Nyagangazpererabotka gas processing plant, controlled by Sibur, from 250m cbm/year to 500m cbm/year, it said.

Ahead of the deal, Sibur has been increasing its gas processing capacities in the region.

In August 2010, it decided to build a new 2.8m tonne/year gas processing facility at Tobolsk-Neftekhim and increase the capacity of the existing 3m tonne/year gas processing unit there to 3.8m tonnes/year.

The new gas processing capacities are due to supply Sibur's new 500,000 tonne/year polypropylene (PP) facility, set to be built at the premises of its subsidiary Tobolsk-Neftekhim by 2012.

For more on PP visit ICIS chemical intelligence
Please visit Will Beacham’s Look East for Chemicals blog

By: Sergei Blagov
+44 20 8652 3214

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