SIBUR signs contract with Gazprom for liquefied petroleum gas until 2021
MOSCOW. Feb 13 (Interfax) - SIBUR Holding and Gazprom have signed a contract for the supply of liquefied petroleum gas from the Surgut Condensate Stabilization Plant at Tobolsk-Neftekhim until 2021, SIBUR said in a statement.
The statement said that annual supply of liquefied petroleum gas between 2012 and 2016 will increase from 440,000 tonnes to over 1 million tonnes. Total hydrocarbon purchases in the following years will be decided separately.
The contract also spells out the pricing formula, which is tied to the market prices for products made from liquefied petroleum and the costs for these materials' transport and their cost for fractionation.
In addition, both companies decided to continue negotiations for the supply of hydrocarbon materials for SIBUR's gas and petrochemical enterprises in other Russian regions.
Liquefied petroleum gas from SIBUR's own processing plants and that purchased from oil and gas companies is transported via the holding's own pipeline to Tobolsk-Neftekhim for further fractionation and production. SIBUR is currently working on the construction of the second section of a gas-fractionation unit, which would boost liquefied petroleum gas output to 6.6 million tonnes a year. The construction of a polypropylene production facility should be finished in the third quarter of 2012 at Tobolsk. The unit's capacity should come to 500,000 tonnes a year. Raw materials for this facility include propylene produced from liquefied petroleum gas.
SIBUR earlier announced that it had been developing an idea to build a pyrolysis unit at Tobolsk able to produce 1.5 million tonnes a year. This production would require around 2.5 million-3 million tonnes of light hydrocarbon materials, of which around 600,000-700,000 tonnes might be ethane.
The holding is also looking at the possibility of building a pipeline for transporting liquefied petroleum gas from the NOVATEK's Purovsky Plant for Processing Condensate to the Yuzhno-Balyksky Gas-Processing Plant. The pipeline's capacity might come to 4 million tonnes of liquefied petroleum gas. NOVATEK might supply around one fourth of these materials (including the company's interest in other companies, this figure could be over one fourth).