SIBUR and Cryogenmash sign agreement to supply industrial gases to ZapSibNeftekhim

Tobolsk, 10 January 2017. SIBUR and Cryogenmash (part of the OMZ Group) have signed an agreement to build an industrial gas production facility at ZapSibNeftekhim (currently under construction).

The industrial gases, including nitrogen and dry compressed air, will be used at all core facilities of ZapSibNeftekhim ranging from key production units to off-sites. The use of dry compressed air provides an opportunity to effectively control production processes, while the application of nitrogen ensures their safety.

Under the agreement, Cryogenmash-Gas-Tobolsk, a subsidiary of Cryogenmash, shall act as the designer, the equipment supplier and the contractor during the construction of a dry air and nitrogen production facility at ZapSibNeftekhim. Once the facility is commissioned, Cryogenmash-Gas-Tobolsk will be engaged on the long-term basis to operate it and supply industrial gases to ZapSibNeftekhim. In its turn, ZapSibNeftekhim undertakes to purchase a certain volume of industrial gases under off-take contracts featuring pre-approved formula-based prices.

The design capacity of the new production facility will be up to 37,000 Nm³/h of nitrogen and 28,000 Nm³/h of dry compressed air, fully covering ZapSibNeftekhim’s industrial gas needs.

“Industrial gas production is not one of SIBUR’s core operations, so we seek to cooperate with Cryogenmash and other industry leaders, signing agreements to outsource our industrial gas supplies. This allows us to focus on the production of petrochemical products that fully meet the needs of our clients,” commented Vasily Nomokonov, Managing Director of SIBUR.

“Cryogenmash is actively growing as an outsourcing supplier of industrial gases. We build and then independently operate air separation equipment, providing our customers with the required volume of high-quality industrial gases. The new agreement with SIBUR marks our eighth project in Russia,” said Sergei Khrustaljov, Executive Director of Cryogenmash.

Air Products, Linde Gas and Cryogenmash are already leveraging similar projects to supply industrial gases to SIBUR's production sites in Voronezh, Dzerzhinsk and Tomsk. Air Liquide supplies industrial gases to RusVinyl, a joint venture between SIBUR and Solvay. In 2017, Air Products and Air Liquide plan to launch their new outsourcing facilities at SIBUR’s Perm and Kstovo sites, respectively.