SIBUR Commences the Design Development for ZapSibNeftekhim

The intended annual production capacity of the unit is 1.5 million tonnes of ethylene. The unit is set to become the largest facility of that type in the Russian petrochemical industry. The agreement was signed by Mr. Leonid Mikhelson, the Chairman of the Board of Directors of SIBUR Holding JSC, Professor Dr Wolfgang Reitzle, Сhairman of Executive Board and Chief Executive Officer of Linde AG, and Professor Dr Aldo Belloni, Member of the Executive Board of Linde AG.

The signing of the agreement was witnesses by Mr. Gerhard Schroeder, Chairman of the Shareholders Committee Nord Stream AG, and Mr. Dmitry Konov, CEO of SIBUR.

LINDE AG will be responsible for development of FEED (front end engineering design) documentation and the relevant sections of the overall design package.

“SIBUR is commencing comprehensive development of its largest project which will change the image of the company and of the Russian petrochemical sector”, said Mr. Mikhelson, the Chairman of the Board of Directors of SIBUR Holding JSC. “We hope that by engaging the world class licensors and engineering companies we will establish an efficient production facility to successfully compete in both the Russian and the foreign markets.”

“We are delighted to be working on this project and continuing our successful collaboration with Russia’s most important petrochemical company,” said Professor Dr Aldo Belloni, Member of the Executive Board of Linde AG. “We also hope that this agreement will lead to further key contracts for our engineering business in this Eastern European growth market.”

Earlier SIBUR selected FEED partners and licensors for other units of ZapSibNeftekhim production complex.

INEOS Technologies was selected as a licensor of the four polyethylene production units with a combined annual capacity of 1.5 million tonnes. TECHNIP has been awarded the Front End Engineering and Design (FEED) contracts.

LyondellBasell was chosen to be a licensor of the largest worldwide Spheripol polypropylene production unit with an annual capacity of 500,000 tonnes. ThyssenKrupp Uhde was engaged to develop the FEED documentation for such unit.

Thus, annual production capacity of the new ZapSibNeftekhim petrochemical complex will reach 2 million tonnes of polymers.

While selecting licensors for its new complex, SIBUR aimed at getting the world’s most advanced and reliable petrochemical technologies to maximise performance and ensure environmental safety of the new plants.

All FEED packages are scheduled to be finalized in 2013.

Background summary:

SIBUR ( is the largest integrated petrochemical company in Russia as well as in CIS and Central and Eastern Europe as measured by revenues. We purchase associated petroleum gas and liquid hydrocarbon feedstock from major Russian oil and gas companies and process them into energy products, including liquefied petroleum gases, natural gas and naphtha and further into various petrochemical products, including basic polymers, synthetic rubbers, plastics, products of organic synthesis, intermediates and other chemicals. We sell to over 2,000 customers in the energy, automotive, construction, retail and other industries in more than 60 countries. As of 31 December 2011 SIBUR owned and operated 22 production sites across Russia and employed approximately 30,200 people. For the full year 2011, revenues totalled RR 248.7 billion, EBITDA reached RR 86.7 billion, and profit for the year amounted to RR 62.8 billion.

SIBUR is controlled by a group of shareholders led by Mr. Leonid Mikhelson, the CEO and founder of NOVATEK. Our shareholding structure is as follows: Mr. Leonid Mikhelson – 57.5%, Mr. Gennady Timchenko (a co-founder of the independent oil-trading company Gunvor) – 37.5% and a group of current and former senior SIBUR managers – 5%.

At the Tobolsk industrial site SIBUR has increased the capacity of the existing gas fractionation unit up to 3.8 million tonnes of NGL annually while initiating the project to build a new gas fractionation unit with an annual capacity of 2.8 million tonnes. In addition, the construction of the largest in Europe polypropylene plant with an intended capacity of 500,000 tonnes a year is nearing its final stage.

The Linde Group ( is a world-leading gases and engineering company with around 50,500 employees in more than 100 countries worldwide. In the 2011 financial year, it achieved sales of EUR 13.787 bn. The strategy of The Linde Group is geared towards long-term profitable growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in every one of its business areas, regions and locations across the globe. The Group is committed to technologies and products that unite the goals of customer value and sustainable development.

INEOS ( is a major global petrochemical business with unique proprietary petrochemical and chemical process technologies. The company has 60 manufacturing facilities in 13 countries throughout the world.

Technip ( is a world leader in project management, engineering and construction for the energy industry. From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 30,000 people in 48 countries are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges..

LyondellBasell ( is the world’s third largest independent chemical company. Its mainly produces olefins and their derivatives, polyolefins, refined products and fuel. The company employs 14,000 people in 18 countries.

ThyssenKrupp Uhde has a workforce of more than 5,600 employees worldwide and is a company in the Plant Technology business area of the ThyssenKrupp Group. The company's activities focus on the engineering and construction of chemical and other industrial plants in the following fields: fertilisers; electrolysis; gas technologies; oil, coal and biomass gasification; refining technologies; organic intermediates, polymers and synthetic fibres; and also coke plant and high-pressure technologies. We also provide our customers with professional services and comprehensive solutions in all areas of industrial plant operation. Details are available at
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