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RusKhimAlyans, Linde, and Renaissance Heavy Industries signed EPC contract to build a natural gas liquefaction plant

September 16/2021

MOSCOW (MRC) -- RusKhimAlyans, Linde, and Renaissance Heavy Industries signed today in St. Petersburg an contract to build a natural gas liquefaction plant within the Gas Processing Complex near Ust-Luga (GPC, part of the Complex for processing ethane-containing gas; the GPC operator is RusKhimAlyans, a joint venture of Gazprom and RusGazDobycha), said the company.

The document was signed in the presence of Alexey Miller, Chairman of the Gazprom Management Committee, and Wolfgang Reitzle, Chairman of the Board of Directors of Linde.

According to the contract, the consortium of Linde and Renaissance Heavy Industries is going to provide for the design works and supplies of equipment and materials, as well as to perform the construction and installation of two production trains with a total capacity of 13 million tons of liquefied natural gas per year.

A technology patented in Russia will be used to produce this LNG. The patent holders for the technology are Gazprom and Linde.

RusKhimAlyans is implementing the project for the Gas Processing Complex (GPC) within the Complex for processing ethane-containing gas (CPECG) near the settlement of Ust-Luga.

The GPC of the CPECG is an integrated complex for natural gas processing and liquefaction. The complex will have the biggest capacity in Russia and one of the largest in the world in terms of gas processing (45 billion cubic meters per year), and will be the leader in northwestern Europe in terms of liquefied natural gas production (13 million tons of LNG per year). Approximately 18 billion cubic meters of processed gas will be going into Gazproms gas transmission system. Among the GPCs most important marketable products will be ethane, a valuable raw material for the gas chemical industry.

The CPECG includes a gas chemical complex (the GCC of the CPECG; the project operator is Baltic Chemical Complex, a subsidiary of RusGazDobycha) technically affiliated with the GPC. The GCC will process ethane fraction and produce up to 3 million tons of polymers per year the largest output by a single facility worldwide.

The feedstock for the GPC of the CPECG will come in the form of high ethane-content natural gas. Initially, this gas will be delivered to the enterprise from fields in the Nadym-Pur-Taz region of the Yamal-Nenets Autonomous Area, and later on it will also be produced at Tambeyskoye, the richest field in the Yamal Peninsula. The gas will be transmitted via gas trunklines specially allocated for ethane-containing gas.

At the St. Petersburg International Economic Forum in June 2021, RusKhimAlyans, Linde, and Renaissance Heavy Industries entered into an EPC contract to carry out the design works, equipment supplies, construction, and commissioning of gas processing and off-site facilities at the GPC.

As per MRC, Gazprom and the industrial gases major Linde signed an agreement of intent for Ust-Liga gas processing complex cooperation. 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.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
Author:Anna Larionova
Tags:PP, PE, gas processing, neftegaz, Gazprom, RusHimAlyans, Linde Group.
Category:General News
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