SIBUR Choose a second EPC-contractor as Part of a Polypropylene Production Complex Construction

Tobolsk-Polymer LCC and the German company Linde-KCA-Dresden GmbH have concluded an Engineering Procurement and Construction Contract (EPC-contract) for a polypropylene production unit with the capacity of 500,000 tons of polypropylene per year.

Earlier, Linde-KCA-Dresden GmbH executed a FEED contract for development of front end engineering design and supply of long lead equipment. In the near future, Linde-KCA-Dresden GmbH will start pile works at the construction site. It is scheduled to deliver the main part of the large-sized equipment to Tobolsk in 2010 – 2011.

The total contract value makes about 450 million Euro.

Technological scheme Tobolsk-Polymer LCC consists of two basic units – propane dehydration unit with the capacity of 510,000 tons of propylene per year and polypropylene production with the capacity of 500,000 tons per year. In December 2009 Tobolsk- Polymer and the Italian company Tecnimont S.p.A. concluded an Engineering Procurement and Construction Contract (EPC-contract) for the first one.

For Editors

Linde-KCA-Dresden GmbH  is a subsidiary of The Linde Group, is one of the leading companies world-wide in the planning, delivery and construction of chemical, gas, biotechnology and pharmaceutical plants. The main products of the Linde-KCA-Dresden GmbH  are polyolefin plants, cryogenic plants for air distraction, as well as chemical, gas-generating and biotech plants. The Linde Group is a world leading gases and engineering company with almost 52,000 employees working in around 100 countries worldwide.

OOO Tobolsk-Polymer is a 100 % affiliated society of  SIBUR Holding JSC created for implementation of the construction project of a polypropylene production complex with the capacity of 500 thousand tons per year. The complex is under construction in immediate proximity to an operating factory of Tobolsk-Neftekhim LLC and using its raw-material base; the factory is also a 100 % affiliated society of SIBUR Holding JSC. The technological process of the new complex consists of two basic parts, i.e. production of 510 thousand tons of propylene per year by the method of propane dehydration, and production of 500 thousand tons of polypropylene a year from it.

Key dates of the project implementation:

January, 2007: SIBUR selected the American company Fluor (Project Management Company) for management of the project.

February, 2007: SIBUR entered into an agreement with the Government of the Tyumen Oblast on joint housing construction intended, among others, for builders and employees of the new production facilities.

June, 2007: Construction  of a housing project began.

August, 2007: SIBUR together with the operating company FLUOR selected the licensors of the project, i.e. UOP (USA), and INEOS (Great Britain).

August, 2007: The Government of the Tyumen Region and Tobolsk-Polymer LLC entered into an investment agreement on state support to implementation of the project.

December, 2007: SIBUR selected the Italian company Tecnimont S.p.A. and the German company Linde-KCA-Dresden as contractors for front-end design, equipment supply and construction.

June, 2008: Public hearings were held in Tobolsk; by their results the project was approved by the administration and the citizens.

July, 2008: Beginning of the preparatory work at the construction site, and ordering of the long lead equipment.

April, 2009: Branan Environment together with URS Corporation finished Environmental and Social Impact Assessment of the projected complex in accordance with the international standards and on the strength of the requirements of the International Financial Corporation (IFC), the World Bank, the European Bank of Reconstruction and Development (EBRD), and also the EQUATOR Principles.

April, 2009: The Supervisory Council of the Vneshekonombank (Bank for Foreign Economic Activity) approved financing of the complex construction project by opening of demand lines of credit for Tobolsk-Polymer LLC.

September, 2009: Vneshekonombank opened the first demand line of credit as part of financing of the polypropylene complex construction project in Tobolsk.

December, 2009: Tobolsk-Polymer LCC and the Italian company Tecnimont S.p.A. have concluded an Engineering Procurement and Construction Contract (EPC-contract) for a propane dehydration unit with the capacity of 510 thousand tons of propylene per year in Tobolsk.