Russia's Sibur, Gazprom sign NGL supply deal

13 February 2012 11:37  [Source: ICIS news]

MOSCOW (ICIS)--Russian petrochemical company Sibur said on Monday it has signed a long-term feedstock supply contract with the country's gas giant Gazprom.

The contract envisages natural gas liquids (NGL) from the Surgut condensate stabilisation plant being supplied to Sibur's Tobolsk-Neftekhim facility up to 2021, the company said.

The supply of NGL will go up from 440,000 tonnes/year to more than 1m tonnes/year between 2012 and 2016, it said.

"Through a strategic partnership with Gazprom and other leading oil and gas companies, Sibur is able to multi-source light hydrocarbons, providing a base for the sustainable growth of petrochemical production," said Sibur CEO Dmitry Konov.

Sibur has been prioritising gas supply and gas processing projects in western Siberia in recent years.

In 2010, it started building a new pipeline to funnel hydrocarbon gases to its Tobolsk-Neftekhim petrochemical plant. The 400km pipeline was designed to serve a project to build a new 500,000 tonne/year polypropylene (PP) facility in Tobolsk.

NGL produced by Sibur at its own gas processing plants, as well as additional volumes purchased from oil and gas companies, are transported via the Sibur-owned pipeline to Tobolsk, the company said.

Sibur said it plans to complete the construction of the PP project in the third quarter of 2012.

By: Sergei Blagov
+44 20 8652 3214

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