Russia’s leading petrochemicals company and one of the most rapidly growing petrochemicals businesses globally, Sibur Holding, and
The long discussed project has been in the works for years and follows on from the completion of the ZapSibNeftekhim petrochemical complex (ZapSib) in 2020, another major expansion of the company’s production capacity that was profiled by bne IntelliNews in ““Plastics in the snow” in 2018.
Sibur and Sinopec signed off on a provisional agreement to build the Amur Gas Chemical complex in
“The partnership will allow the parties to tap into shared expertise and experience to maximise efficiency of new large-scale projects and to exchange best practices”, said
Under the terms of the final agreement Sibur and Sinopec will hold 60% and 40% respectively in the Amur GCC joint venture, the company said.
The main terms and conditions of the potential joint venture were agreed in 2019 that began the process of getting all corporate and regulatory approvals required to close the deal, which has now been completed. Following the deal, the parties will gain joint control over Amur GCC.
Set to become the world’s largest basic polymer production facility, Amur GCC will have a capacity of 2.7mn tonnes per year, including 2.3mn tpy of polyethylene and 400,000 tpy of polypropylene, and will be producing a wide range of grades.
The construction of Amur GCC proceeds in sync with the gradual ramp-up of Gazprom’s Amur Gas Processing Plant to its full capacity, so that the latter could supply ethane and liquefied petroleum gas (LPG) to Amur GCC for processing into high value-added products. The completion of construction and commissioning is scheduled for 2024. The creation of Amur GCC is part of Sibur’s strategy to move up the value chain and produce more valuable hydrocarbon products from the feedstock supplied by Russia’s major oil and gas producers.
“The Amur GCC project will help attract international investments in the Russian economy while also making a considerable contribution to the national programme of growing the nation’s non-commodity exports. Given the facility’s geography, its products will be targeting Asian markets, primarily
In keeping with the ongoing move towards environmental, social and governance (ESG) compliant production, Sibur stressed the project would follow the highest global environmental and technology standards, in particular through its reliance on renewable energy sources.
Amur GCC’s construction budget is tentatively estimated at
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