SIBUR and Linde sign agreement to build new air separation unit in Dzerzhinsk

24-Jul-13

SIBUR, a Russian gas processing and petrochemicals company and Linde Group, a German Technology company, have signed agreements to build and operate new air separation units in Dzerzhinsk, the Nizhny Novgorod Region. On a long-term basis, SIBUR will provide Linde with a leased site and power supply while Linde, in its turn, will supply technical gases to SIBUR. Linde will be investing EUR 70 million in the ASUs. The new on-site plants are expected to come on stream at the end of 2015. In an initial step Linde will assume responsibility for SIBUR’s existing air separation unit at its Dzerzhinsk site. As part of the next step Linde will build a new air separation unit, which – on completion – will be operated by Linde`s Gases Division. The main aim of the new unit is to supply the oxygen, nitrogen and compressed air required to SIBUR’s local ethylene oxide and glycols plants. Linde will also supply air gases to other customers at the Dzerzhinsk chemicals hub as well as to the regional market in Nizhny Novgorod and beyond. The new unit will have a total production capacity of around 30,000 cubic metres of gaseous oxygen per hour. “We are delighted to build further on our long-standing, successful relationship with SIBUR through this new project, which is evidence of our continued long-standing successful cooperation,” said Dr Aldo Belloni, Member of the Executive Board of Linde AG. “This on-site deal bears further testimony to the success of our integrated business model. Our customers can rely on us for a one-stop service covering both the delivery of turnkey petrochemical plants and the enabling gas supplies.” “This deal will enhance the operational efficiency of SIBUR's ethylene and glycols plant in Dzerzhinsk and enable us to further strengthen our leading positions in Russia and CIS markets,” commented Valery Andosov, Director for Strategy, SIBUR's Plastics and Organic Synthesis Division. “We are glad to execute this deal with Linde, a long-time and well-established partner for SIBUR. The new unit will supply industrial gases not only to SIBUR's plant in Dzerzhinsk but also to other businesses. By outsourcing industrial gas supply, SIBUR will be able to focus on developing its core operations,” said Sergey Merzlyakov, Managing Director – Head of Plastics and Organic Synthesis business unit at SIBUR.