SIBUR to commence further gas fractionation capacity expansion in Tobolsk

Tobolsk, 10 July 2015. The Investment Committee of SIBUR has approved the expansion of a facility processing raw natural gas liquids (raw NGL) at the Tobolsk production site that is expected to increase the site's capacity from 6.6 mtpa to 8 mtpa.

Over the last several years, SIBUR has been consistently enhancing the gas fractionation capacity at the Tobolsk site. Launched in 1984, the Tobolsk-Neftekhim gas fractionation facility processed around 2 mtpa of raw NGL. With the ongoing progress from 2005, its capacity reached 3 mtpa, 3.5 mtpa and 3.8 mtpa in 2009, 2010 and 2011 respectively. The second gas fractionation unit, commissioned in 2014, made the overall capacity of the Tobolsk site hit 6.6 mtpa.

The project is meant to boost the second gas fractionation unit capacity from 2.8 to 4.2 mtpa by means of additional equipment for internals, heat-exchange and pump equipment, construction of a cooling tower and expanded feedstock range.

NIPIGAS, a design and engineering centre, has been selected as a general designer. Currently, all the design documents have been completed and approved by Glavgosexpertiza, with the relevant construction permit issued. All major production equipment has been contracted and its delivery is underway.

According to preliminary estimates, the project investment totals RUB 5.5 bn. The project is scheduled for completion by 2017.

"The expansion of the raw NGL processing facility in Tobolsk is in line with our strategy of continued strengthening of our vertically integrated business model. SIBUR benefits from long-term contracts with major Russian oil and gas companies which cements our competitive advantage of access to the West Siberian feedstock. In 2014, we accomplished construction of infrastructure to transport hydrocarbons to the Tobolsk site to process them into energy and petrochemical products. When further expanded, the gas fractionation capacity in Tobolsk will make it possible to maximise efficiency of our hydrocarbon feedstock transportation capacities and improve flexibility and reliability of feedstock supplies to the existing and future deep conversion facilities", said Dmitry Konov, SIBUR's CEO.