Sibur and Linde enter agreement to build ethylene plant in Siberia

21 June 2012 14:35  [Source: ICIS news]

LONDON (ICIS)--Sibur has entered into an agreement with Germany’s Linde to design and build one of the world’s largest ethylene plants in Tobolsk, western Siberia, the Russia-based petrochemical major said on Thursday.

Sibur said that, under the agreement, industrial gases and engineering firm Linde will provide front end engineering and design (FEED) services for the ethylene plant.

The plant is to be built at the ZapSibNeftekhim petrochemical complex in Tobolsk, which is being planned by Sibur subsidiary ZapSibNeftekhim.

Once completed, the plant will produce around 1.5m tonnes/year of ethylene, 500,000 tonnes/year of propene and 100,000 tonnes/year of butadiene (BD) from the feedstocks ethane, propane and n-butane.

Sibur did not disclose when the plant would start up or financial details of the deal.

“Sibur is commencing comprehensive development of its largest project, which will change the image of the company and of the Russian petrochemical sector”, said Leonid Mikhelson, chairman of the board of directors of Sibur.

“We hope that by engaging the world-class licensors and engineering companies we will establish an efficient production facility to successfully compete in both the Russian and the foreign markets,” he added.

The unit is set to become the largest facility of its type in the Russian petrochemical industry, the company added.

“We are delighted to be working on this project and continuing our successful collaboration with Russia’s most important petrochemical company,” said Aldo Belloni, a member of the executive board of Linde.

“We also hope that this agreement will lead to further key contracts for our engineering business in this eastern European growth market,” he added.

The products that the plant will produce are important building blocks for the plastics manufacturing industry.

Sibur said it had also selected FEED partners and licensors for other units to be designed and built at the ZapSibNeftekhim production complex.

Switzerland-headquartered petrochemicals technologies developer and licensor INEOS Technologies was selected as a licensor of four polyethylene production units, which will have a combined annual capacity of 1.5m tonnes, while French engineering firm Technip was awarded the FEED contract, said SIBUR.

It added that Netherlands-headquartered chemicals major LyondellBasell was chosen to be a licensor for the largest worldwide Spheripol polypropylene production unit, with an annual capacity of 500,000 tonnes, with German engineering firm ThyssenKrupp awarded the FEED contract.

Sibur said annual production capacity at the new ZapSibNeftekhim petrochemical complex will reach 2m tonnes of polymers.

All FEED packages are scheduled to be finalised in 2013, the company added. Sibur did not disclose when the units would start up or financial details.

By: Leigh Stringer
+44 208 652 3214

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