Sibur, Gazprom to build gas processing plant in Russia

MOSCOW, RUSSIA: Sibur and Gazprom Neft have signed an agreement for construction of a new gas processing plant (GPP) with an annual associated petroleum gas (APG) processing capacity of 900 million cubic metre on the basis of existing Yuzhno-Priobskaya compressor station in the Khanty-Mansi Autonomous Area, Russia. The GPP is designed to have liquids recovery ratio at least of 95 per cent, in line with global practices.

The project will be implemented by OOO Yuzhno-Priobskiy GPP, a 50-50 joint venture of Gazprom Neft and Sibur. Under the memorandum, Gazprom Neft will supply APG to Yuzhno-Priobskiy GPP on a long-term basis while Sibur will pay for half of the volume. Sibur will then sell its share of dry gas to Gazprom Neft and purchase Gazprom Neft’s share of NGLs. All the contracts, with price formula agreed, will be long-term.

“More efficient use of associated petroleum gas is one of the key targets for Gazprom Neft. Since we expect further APG production growth at our Khanty-Mansi fields, we are launching the new project to increase APG processing volumes – the construction of a new GPP. This is the best solution possible; it enables our partners and us to gain maximum economic benefit from feedstock processing and utilisation using our companies’ industry experience,” said Vadim Yakovlev, First Deputy CEO, Gazprom Neft.

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