17 Nov 2009 17:40

Sibur plans to increase APG processing 6% to 17.5 mln tonnes in 2010

MOSCOW. Nov 17 (Interfax) - Sibur Holding plans to boost associated petroleum gas (APG) processing to 17.5 million tonnes in 2010, an increase of 6% over the expected processing volume of 16.5 million tonnes this year, the company said in a presentation.

By 2012 the company plans to boost APG processing to 20 million tonnes a year.

Processing volumes - and LPG output - will increase due to the requirement that APG utilization rise to 95% by 2012. The share of wet gas in production will also grow, in part due to development of new fields in Yamal and Eastern Siberia. The ratio of dry gas to wet gas was 80%-20% in 2007, but will become 70%-30% in 2010 and 60%-40% by 2015.

In 2013 Sibur expects to account for 60% of Russian LPG exports, 40% of the liquefied gas deliveries to the petrochemical industry and 15% of the deliveries to the domestic market.

State support is needed in order to promote LPG usage, including as a motor fuel. That will involve passage of a law on alternative fuels and approval of vehicle manufacturers' specifications for gas tank equipment and its installation and introduction of a discounted tax rate on ownership of vehicles installed with certified gas tank equipment.

Sibur also wants the budget to finance conversion of the government's fleet of vehicles to burn gas and acquisition of vehicles equipped with gas tank equipment. In addition, gas-burning passenger vehicles would receive subsidies from the government for the period required to break even on the expense of installation the gas equipment.