Russia petrochemical producer Sibur signs Kyoto CO2 deal

26 March 2012 16:32  [Source: ICIS news]

MOSCOW (ICIS)--Sibur has signed an agreement to sell Emission Reduction Units (ERUs) as a part of a major Joint Implementation Project (JIP) under the Kyoto treaty, the Russian petrochemical company said on Monday.

Sibur sold ERUs equal to 1.2m tonnes of carbon dioxide (CO2) to investment bank JP Morgan. The deal was coordinated by Russia’s ERU operator Sberbank.

ERUs, also known as "assigned amount units" (AAUs), are trading units under the Kyoto Protocol representing a reduction of greenhouse gas emmissions. One ERU represents one tonne of CO2.

The total volume of the JI project is 8m tonnes of CO2, a capacity achieved by the construction of the second stage of Sibur’sYuzhno-Baliksky Gas Processing Plant in the Khanty-Mansijsk Autonomous District, it said.

Sibur implemented the expansion of the Yuzhno-Baliksky plant in partnership with Russian oil company Rosneft, which supplies associated petroleum gas (APG) to the facility.

Subsequently, both companies will share earnings from ERUs on a parity basis, Sibur said, without disclosing further financial details.

By: Sergei Blagov
+44 20 8652 3214

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