Gazprom Signs Memorandum with Sibur

Gazprom and Sibur signed on Friday a memorandum of cooperation to develop a complex for processing multicomponent gas from fields of the Yakutia and Irkutsk gas production centers.

The two Russian companies are interested in stripping ethane and other components from natural gas.

‘Sibur intends to create a gas chemical complex technologically connected with the gas processing plant for the purpose of processing ethane, obtaining monomers and subsequent manufacturing of polymers,’ reads the note release by Gazprom.

According to the press release, Gazprom is planning to construct a gas processing plant in Belogorsk with the annual capacity of up to 60 billion cubic meters.

“The efficient and reasonable use of all the valuable components of natural gas from eastern fields is a priority of Gazprom's comprehensive activities in Russia's East. The partnership with Sibur is a sample model of Gazprom's cooperation with other investors within the Eastern Gas Program: Gazprom creates a resource base and facilities for production, transmission and initial processing, while our partners construct capacities for chemical processing and manufacturing of value added products. The joint activities will result in a considerable economic effect and become an extra incentive for developing Eastern Siberia and the Far East,” commented Alexey Miller, Chairman of the Gazprom Management Committee.

In December, Novatek agreed to supply Sibur with 36 million tons (mt) of light hydrocarbons and 8 mt of LPG, for a total value of RUB 510 billion, during the contractual period 2014-2034, setting Sibur on the path of becoming one of Novatek’s largest customers.