01 November 2013 10:37 [Source: ICIS news]
LONDON (ICIS)--Petrochemical company SIBUR and fellow Russia-based gas company Gazprom have signed а memorandum of cooperation regarding the construction of a gas processing plant and a petrochemical complex in Belogorsk, the Amur Region, the companies said on Friday.
The document outlines the framework for joint efforts of both parties for prospective construction of a large-scale multicomponent gas processing complex in the far east of Russia.
Gazprom is considering the construction of a 60 billion cubic metres (bcm)/year gas processing plant in Belogorsk that will separate ethane and other gas fractions, while SIBUR is looking at the construction of a technologically-connected petrochemical complex to process ethane and produce monomers and polymers.
Feedstock is expected to be sourced from natural gas production centres in Yakutia and Irkutsk developed by Gazprom, the two groups added.
The memorandum of cooperation laid out general mechanisms for pricing of ethane supplies, coordination of the projects implementation and provision of synergies, Gazprom and SIBUR said.
Financial details were not disclosed.
Alexey Miller, Gazprom’s chairman of the management committee, said: “One of the priorities of Gazprom’s comprehensive efforts in the east of Russia is to ensure effective and rational utilisation of all the valuable components of the eastern fields’ gas.”
“Gazprom is developing a resource base and constructing upstream and midstream facilities, while our partners are building facilities for petrochemical processing and production of high value-added products. Such cooperation will make significant contribution to economic growth and spur development of the east Siberian and the far eastern regions,” he added.
Dmitry Konov, SIBUR’s CEO, said: “SIBUR is continuously looking for new opportunities to develop its petrochemical business, strengthening its leading positions in Russia and tapping into new target export markets.
“Our partnership with Gazprom will enable to unlock potential of cooperation of upstream and downstream producers to create highly-competitive capacity for deep processing of hydrocarbons into value-added petrochemical products,” he added.
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