MOSCOW (MRC) -- SIBUR-Khimprom (a subsidiary of SIBUR Holding) and Air Products have entered into an agreement to build a new air separation unit in Perm and to supply the facility with locally produced gases, said the producer in its press release.
The document was signed by Air Products CEO Robert Peter Mills and SIBUR-Khimprom CEO Gennady Shilov.
Under the deal, Air Products will supply industrial gas to SIBUR's Perm subsidiary as agreed and invest its own cash to build and operate the new air separation unit.
SIBUR-Khimprom will build relevant facilities and utilities, lease out the site and act as the buyer under fixed price off-take contracts. This deal will help SIBUR-Khimprom cut down on industrial gas pricing, improve supply and focus on developing its new and current core operations.
The unit will comply with the most advanced usage, safety and efficiency standards. Its capacity will be c. 30,000 cu m of gaseous nitrogen per hour and c. 6,000 cu m of dry compressed air per hour, meeting the needs of SIBUR's Perm facility. The unit is set to come on stream in 2016. After the commissioning Air Products will supply industrial gases for SIBUR-Khimprom over the next 20 years.
This is the fourth SIBUR partnership for industrial gas production. Similar projects include facilities in Voronezh (in partnership with Air Products), Dzerzhinsk (with Linde Gas) and Tomsk (with Cryogenmash-Gas).
As MRC wrote before, SIBUR said in September that following the completion of the front-end engineering design (FEED) contracts and assessment of the design documentation, it is proceeding with the previously announced mega ZapSibNeftekhim project at Tobolsk, Russia. ZapSibNeftekhim's project is designed to operate a steam cracker (by Linde AG, Germany) with a capacity of 1.5 mtpa of ethylene, around 500 ktpa of propylene and 100 ktpa of butane-butylene fraction (BBF), along with units with a total capacity to produce 1.5 mtpa of various grades of polyethylene (by INEOS, UK) and a polypropylene unit of 500 ktpa (by LyondellBasell, Netherlands).
SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.
MRC