SIBUR presents Amur Gas Chemical Complex to Russia’s President

Vladivostok, 5 September 2019. Dmitry Konov, Chairman of the Management Board at SIBUR Holding presented the Amur Gas Chemical Complex (GCC) project to President Vladimir Putin at the Eastern Economic Forum.

The Amur Gas Chemical Complex (GCC) project is set to build one of the world's largest gas chemical facilities in the Svobodnensky District of the Amur Region as part of the Svobodny Priority Development Area (PDA). Feedstock for the project will be sourced from the Amur Gas Processing Plant (GPP), which is currently being built by Gazprom to process wet gas from deposits in Siberia and the Republic of Yakutia and then supply it to China. The Amur GCC and GPP will be in close proximity to each other and technologically connected.

SIBUR may implement the project in a basic or extended configuration. The basis configuration provides for processing of 2 mtpa of ethane fraction to come from the Amur GPP. It will have a capacity of 1.5 mtpa of ethylene that could be further transformed into polyethylene grades enjoying both domestic and global demand. The project will create about 1,000 new high-tech jobs at the GCC and auxiliary facilities.

The extended configuration boasts a larger capacity of up to 2.7 mtpa of end products resulting from an additional 1.5 mtpa of liquefied petroleum gas (LPG) supplied by the Amur GPP. If the extended option comes to life, the Amur GCC will become the world's largest producer of polyethylene and polypropylene. The capacity expansion would create up to 300 additional jobs in the region, boosting overall fiscal revenues by RUB 4 bn.

As of now, a long-term agreement for the supply of feedstock (ethane fraction) has been signed with Gazprom and licence agreements and FEED contracts have been made with the engineering companies. As the GCC site is being prepared for construction, SIBUR is working on the project’s extended configuration and holding talks with Gazprom on LPG supplies. The Company is also expecting a potential decision by the government to introduce a negative excise tax on LPG that will create equal processing conditions for various petrochemical resources. The project configuration decision will be finalised by the end of 2019.

Dmitry Konov, Chairman of the Management Board at SIBUR Holding: “The Amur GCC project is certain to attract new technologies to the region boosting social infrastructure development, while also contributing to high-tech production and promoting Russia's non-commodity exports. SIBUR has extensive and successful experience completing major petrochemical projects on time and on budget. Currently, we are working on pre-commissioning at ZapSibNeftekhim, Russia's largest petrochemical facility”.

The Amur GCC will be built using cutting-edge production and digital technologies and leveraging advanced solutions of the world's leading licensors to ensure the facility’s long-term seamless operation, its industrial and environmental safety and energy efficiency.