Agreement inked between Govt of Amur and SIBUR for 2.4 mln tpa ethylene and derivative project

22-Sep-14

Oleg Kozhemyako, Governor of the Amur Region, and Pavel Lyakhovich, Member of the SIBUR Management Board and Managing Director, have signed a cooperation agreement between the Government of the Amur Region and the petrochemical holding. According to the agreement, both parties share a common interest in SIBUR's investment and its other programmes in the Amur Region, most notably the prospective construction of a gas chemical complex. The agreement provides that when investing in the Amur Region SIBUR will build on the local potential of the region, particularly with regards to its technical infrastructure, labour sourcing and liaison with educational institutions. The Amur Government, in turn, undertakes to offer full support to ensure development of the gas chemical industry within the Region in compliance with applicable law. In particular the local authorities will look into the possibility assisting in the construction of infrastructure facilities required to build and operate the gas chemical complex, and including these facilities in the state programme for the Socioeconomic Development of the Russian Far East and the Baikal Region through 2025. In late 2013, SIBUR and Gazprom signed a memorandum of cooperation to build a gas processing plant (GPP) and a gas chemical complex (PCC) in the Amur Region. The agreement outlines cooperation by the parties on the prospective construction of a large-scale multicomponent gas processing complex in the Yakutsk and Irkutsk gas production centres, which Gazprom is developing under the Eastern Gas Programme. Initial estimates suggest that the prospective gas chemical complex will produce 2.4 mtpa of ethylene and its derivatives.