MOSCOW (MRC) -- Gazprom and the industrial gases major Linde have signed an agreement of intent for Ust-Liga gas processing complex cooperation, said the company.
The document outlines the main terms and conditions of a prospective EPSS contract providing for engineering services, equipment supplies, and maintenance of gas processing and off-site facilities, Gazprom informed in its statement.
Gazprom and RusGazDobycha are implementing the project near the settlement of Ust-Luga, with the RusKhimAlyans as the project operator. It is the anchor project of the major gas processing and chemical cluster that is being established in the region.
The complex will have a gas processing capacity of 45 billion cubic meters per year and will be capable of producing 13 million tons per year of LNG. In addition to LNG, its commercial products will include ethane fraction, liquefied petroleum gases, and pentane-hexane fraction.
RusGazDobycha will be responsible for the construction of the technically affiliated gas chemical facility that will process ethane generated by the complex and produce up to 3 million tons of various polyethylene grades.
As per MRC in February 2020, Linde signed a contact for the provision of services for the design and construction of a part of the Amur Gas Chemical Complex (AGHK) of SIBUR. The services will be provided as part of a consortium with NIPIgaz, part of the SIBUR structure.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.
The Linde Group is a world-leading gases and engineering company with around 62,000 employees in more than 100 countries worldwide. In the 2012 financial year, Linde generated revenue of EUR 15.280 bn.
MRC