Sibur may build pipeline from Purovsky plant to Yuzhno-Balyksky
MOSCOW. Dec 20 (Interfax) - Russian petrochemicals company Sibur is looking into building a pipeline in the Yamal Nenets Autonomous District to transport broad light hydrocarbon fractions from the Purovsky gas condensate plant to the Yuzhno-Balyksky gas processing plant, Sibur Chairman Dmitry Konov said at a press conference Tuesday.
The pipeline could transport around 4 million tonnes per year, he said.
Gas major NOVATEK could provide around a quarter of the gas and taking into account NOVATEK's shares in other companies - "over a quarter," he said.
The idea to construct such a pipeline was not connected with changes in the company's shareholder structure, but with general trends in the market's development, Konov said. Sibur has two material fields - liquefied petroleum gas from oil companies' associated gas, and liquid hydrocarbons separated from natural gas. "We are seeing a limited availability of associated gas at a level of 23-25, but we are seeing further growth due to volumes from gas companies," Konov said.
The broad light hydrocarbon fractions transported via the pipeline could be sent to a new pyrolysis facility that may be built in Tobolsk with a 1.5-million-tonne capacity.
Earlier, NOVATEK Financial Director Mark Gyetvay said the company plans to sign a long-term contract with Sibur on the supply of broad light hydrocarbon fractions from the Purovsky gas condensate plant.
NOVATEK plans to increase liquefied petroleum gas production to 3.1 million tonnes by 2020 from 1.1 million tonnes in 2012.
The project for creating the pipeline from the Purovsky plant to the Yuzhno-Balyksky plant is part of a larger project for expanding material transport capacity in Western Siberia. Besides building the new pipeline, the project also envisages expanding the existing pipeline from the Yuzhno-Balkyksky plant to Tobolsk-Neftekhima. The Purovsky-Yuzhno-Balyksky-Tobolsk-Neftekhima pipeline will measure over 1,000 kilometers in length, and it will have a throughput capacity from 8 million tonnes of hydrocarbon material per year (including liquefied petroleum gas with high ethane content). At the current standard, ethane content in the pipe cannot exceed 9%, Konov said.
As reported, Sibur has already launched engineering survey work on the project for building the pipeline from the Yuzhno-Balyksky gas processing plant to Tobolsk-Neftekhima. The pipeline will measure 400 kilometers long.
Sibur will implement this project independently, he said. Konov did not specify the cost of the project, saying only that it could be "many billions of rubles."
Earlier, NOVATEK Financial Director Mark Gyetvay said the company plans to sign a long-term contract with Sibur on the supply of broad light hydrocarbon fractions from the Purovsky gas condensate plant.
NOVATEK plans to increase liquefied petroleum gas production to 3.1 million tonnes by 2020 from 1.1 million tonnes in 2012. By that time, Sibur could purchase 49% of all liquefied gas from NOVATEK.