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January 29, 2010

The RF Ministry of Regional Development has issued a permit to construct a liquefied gas transshipment complex

Moscow, January 29, 2010: The RF Ministry of Regional Development has issued a permit to construct a complex for transshipment of liquefied petroleum gases and light oils in Ust-Luga Commercial Sea Port in Leningrad Oblast.

The project is being executed by SIBUR-Portenergo LLC, a subsidiary company of SIBUR. By now, the enterprise has obtained all the required consents, has completed the design work stage and has begun the detailed design. The expected construction start time is the second quarter of 2010.

The design capacity of the new complex is up to 1.5 mln tpa of liquefied petroleum gases and 2.5 mln tpa of light oils.

For Editors

Execution of numerous projects for substantial increase of associated petroleum gas processing volumes in Russia leads to increase of volumes of associated petroleum gases (APG) and stable natural gasoline (SNG) produced therefrom. The strategic benchmark of SIBUR is reprocessing of this gas chemical feedstock in the territory of Russia to final bulk polymers: polypropylene, polyvinyl chloride, and polyethylene. To this effect, the Company is executing large-scale projects for construction of appropriate petrochemical complexes in Tyumen Region, Nizhniy Novgorod Region, and other regions.

Currently, however, the internal demand of APGs by petrochemical operations, public utility companies, and motor transport enterprises using gas is considerably lower than the supply thereof by national gas processing plants. A further increase of APG production volumes calls for establishment of efficient export outlets. At present, the basic APG export volume is realized through ports of foreign countries.

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