Gazprom OAO and SIBUR Holding OAO Join Efforts to Create Processing Complex in Far East

Gazprom OAO (Gazprom) announced that Mr. Alexey Miller, Chairman of the Gazprom Management Committee and Mr. Dmitry Konov, Chief Executive Officer of SIBUR Holding OAO (SIBUR) have signed a Memorandum of Cooperation while constructing a gas processing plant and a gas chemical complex in Belogorsk, Amur Region.

According to the document, the parties will join their efforts as part of the potential creation of a complex for processing multicomponent gas from fields of the Yakutia and Irkutsk gas production centers being currently formed by Gazprom within the Eastern Gas Program. Gazprom is planning to construct a gas processing plant in Belogorsk with the annual capacity of up to 60 billion cubic meters, where ethane and other valuable components will be stripped from natural gas. SIBUR, in its turn, intends to create a gas chemical complex technologically connected with the gas processing plant for the purpose of processing ethane, obtaining monomers and subsequent manufacturing of polymers.

The Memorandum outlines general pricing mechanisms for ethane supplies, projects synchronization and a synergetic effect assurance.