SIBUR to procees with US$9.5 billion ZapSibNeftekhim project

17-Sep-14

Based on completion of the FEED contracts and assessment of the design documentation, SIBUR is to proceeds with the ZapSibNeftekhim project. SIBUR's Board of Directors has approved increased funding for the project in 2014, with overall capex budget for 2014 increasing from RUB 53 billion (US$1.4 bln) to RUB 74 billion. The ZapSibNeftekhim project will include a Linde-process steam cracker designed to produce 1.5 MMtpa of ethylene, 500 Ktpa of propylene, and 100 Ktpa of butane-butylene fraction, along with units with a total capacity to produce 1.5 MMtpa of various grades of polyethylene (PE) by INEOS, UK and 500 Ktpa of polypropylene (PP) by LyondellBasell, Netherlands. FEED for the cracker, polyethylene and polypropylene units has been completed. SIBUR has signed an agreement to design infrastructure and off-site facilities with NIPIgazpererabotka, Russia's leading engineering centre in the gas processing industry.