RZD JSC concluded an agreement with SIBUR petrochemical company

Vladimir Yakunin, President of Russian Railways JSC, and Dmitry Konov, President of SIBUR, signed an agreement on transport management of liquefied petroleum gases (LPG) within Russia and for export. Alexander Dyukov, Chairman of the Board of Directors of SIBUR Holding JSC, took part in the event.

The purpose of the agreement is a long-term and steady increase in volume of LPG transportation and development of the appropriate transport infrastructure, including, as part of export terminals construction.

The companies undertook to put into operation new petrochemical capacities, to guarantee certain volumes of LPG transportation, as well as to develop railway infrastructure and LPG transporting terminal at sea trading port Ust-Luga in Leningrad Region.

Furthermore, the parties considered a step-by-step increase in volume of LPG transportation by rail to third countries, including transportation via the terminal of sea trading port Ust-Luga  for the period  until 2020.

The priority users of LPG are domestic petrochemical producers. SIBUR in association with Russian Railways constantly increases raw hydrocarbons supplies to Russian enterprises. Implementation of APG utilization projects leads to growth in exports of its products that are in no demand in the domestic market.