Agreements for Amur GPP construction project signed
A number of agreements regarding the Amur Gas Processing Plant (GPP) construction project were signed today in the presence of Alexey Miller, Chairman of the Gazprom Management Committee, at the St. Petersburg International Economic Forum 2018.
Valery Golubev, Deputy Chairman of the Gazprom Management Committee, and Dmitry Konov, Chairman of the Management Board of SIBUR Holding, signed a contract for ethane fraction supplies from the Amur GPP to the Amur Gas Chemical Complex (GCC) planned by the SIBUR Group. The contract is effective for 20 years, with the annual amount of supplies at around 2 million tons. The document also specifies the pricing formula for the finished products and the parties’ responsibilities for stable feedstock supplies and acceptance.
The signed contract means that Gazprom will have guaranteed long-term sales of ethane fraction and SIBUR will be able to implement the Amur GCC project, which is currently under development. The partnership of the companies will help set up Russia’s greatest gas processing and chemical cluster in the Amur Region, spurring economic and social development in the Far East.
Dmitry Zhuravlev, Director General of Gazprom Avtomatizatsiya, and Vladimir Savelyev, Director General of Yokogawa Electric CIS, signed an Agreement of Cooperation. The parties intend to develop mutually beneficial relations with regard to the application of advanced process and operations control systems at the Amur GPP, as well as the creation of computer simulators for the GPP’s process operators.
NIPIGAZ (general contractor for the Amur GPP construction) and the Maire Tecnimont Group (as the leader of the consortium between the Maire Tecnimont Group and the Sinopec Engineering Group) signed an additional agreement to the EPC contract for the off-site facilities of the Amur GPP. In accordance with the agreement, the main scope of construction and installation works will be performed by Renaissance Heavy Industries, the winner of the corresponding tender. To that end, a subcontracting agreement was signed by Tecnimont Russia (part of the Maire Tecnimont Group) and Renaissance Heavy Industries.
Developing gas resources and shaping gas transmission system in eastern part of Russia
Gazprom’s Amur GPP will be the largest gas processing plant in Russia and the second-biggest gas processing enterprise in the world. It will have the design capacity of 42 billion cubic meters of gas per year. The plant will comprise six process trains, two of which are planned to come online in 2021. In addition to natural gas, the GPP will produce ethane, propane, butane, pentane-hexane fraction, and helium.
The investor and customer for the Amur GPP construction project is Gazprom Pererabotka Blagoveshchensk (part of the Gazprom Group). Construction management is carried out by NIPIGAZ (part of the SIBUR Group), general contractor.
In order to process ethane fraction from the Amur GPP, SIBUR plans to build the Amur GCC with the annual output of 1.5 million tons of ethylene, which will be further processed into polymeric products.
Yokogawa Electric Corporation is a major developer and manufacturer of industrial automation and process control hardware and software, laboratory and measuring equipment.
The Maire Tecnimont Group is an international EPC contractor specializing in the construction of gas processing and petrochemical facilities. The company operates in 30 countries, including Russia.
The Sinopec Engineering Group is one of China’s leading engineering companies. It is a part of Sinopec Corp., a Chinese petrochemical corporation.
Renaissance Heavy Industries, a subsidiary of Ronesans Holding and one of the largest general contractors in Russia, runs its business in Turkey, the CIS, Europe, the Middle East, and North Africa.