Gazprom and SIBUR agree on hydrocarbon supplies up to 2033

RELEASE

Valery Golubev, Deputy Chairman of the Gazprom Management Committee, and Vladimir Razumov, Member of the Board of Directors of SIBUR Holding, today signed an Agreement at the 7th St. Petersburg International Gas Forum.

Vladimir Razumov, Member of Board of Directors of SIBUR Holding, and Valery Golubev signing Agreement at 7th St. Petersburg International Gas Forum
Vladimir Razumov, Member of Board of Directors of SIBUR Holding, and Valery Golubev signing Agreement at 7th St. Petersburg International Gas Forum

Vladimir Razumov and Valery Golubev at signing ceremony

The document outlines the terms of a future supplementary agreement to the long-term supply contract providing for Gazprom’s deliveries of natural gas liquids (NGL) produced at the Chernomyrdin Surgut Condensate Stabilization Plant to SIBUR’s Tobolsk facility.

The contract signed in 2011 will be extended to 2033. Among other things, the parties determined the amount of NGL supplies for the entire period of the contract. In addition, the pricing formula was adjusted to account for the long-term interests of the parties.

The supplementary agreement to the supply contract will be signed no later than December 1.

Background

The 7th St. Petersburg International Gas Forum is being held as part of the Energy Efficiency and Energy Development International Forum 'Russian Energy Week.'

Natural gas liquids consist of liquid hydrocarbon gases (propane and butane) and heavier hydrocarbons produced as a result of processing natural gas, associated petroleum gas, and gas condensate. They can be used as valuable components in producing a wide range of petrochemicals, such as polymers, synthetic rubbers, and organic synthetics.

 

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