Sibur, Gazprom sign JV deal on petchem complex in Belogorsk

06-Nov-13

Russia's Sibur and Gazprom have signed a joint venture agreement on the construction of a gas processing plant and petrochemical complex in Belogorsk, in the Amur region in Russia's Far East, as per Platts. Financial details and implentation timelines of the agreement were not provided but the memorandum outlines general mechanisms for the pricing of ethane supplies and the coordination of the projects and provision of other synergies. At Belogorsk, Gazprom plans to construct a gas processing plant with an annual capacity of 60 billion cubic meters that will separate ethane and other gas fractions, while Sibur would take charge of the construction of the petrochemical complex that utilizes the ethane for the production of monomers and polymers. Feedstock for the complex is expected to be sourced from the natural gas production centers in Yakutia and Irkutsk which Gazprom is developing under the Eastern Gas program.