Gas processing-related documents signed

RELEASE

A number of documents in the area of gas processing were signed today at the St. Petersburg International Economic Forum 2021.

RusKhimAlyans, Linde, and Renaissance Heavy Industries entered into an EPC contract.

The signing ceremony took place in the presence of Alexey Miller, Chairman of the Gazprom Management Committee, and Wolfgang Reitzle, Chairman of the Board of Directors of Linde.

EPC contract signed by RusKhimAlyans, Linde, and Renaissance Heavy Industries
EPC contract signed by RusKhimAlyans, Linde, and Renaissance Heavy Industries

Kirill Seleznev, Director General of RusKhimAlyans, Juergen Nowicki, CEO of Linde Engineering, and Erman Ilicak, Presudent of Ronesans Holding, at signing ceremony (attended by Alexey Miller and Wolfgang Reitzle, Chairman of Board of Directors of Linde)

The contract stipulates that the consortium of Linde and Renaissance Heavy Industries will carry out the design works, equipment supplies, construction, and commissioning of gas processing and off-site facilities at the Gas Processing Complex near Ust-Luga (GPC, part of the Complex for processing ethane-containing gas; the GPC operator is RusKhimAlyans, a joint venture of Gazprom and RusGazDobycha).

In line with the agreements reached and the project implementation plans, the consortium intends to begin operations at the construction site as early as this June.

Listed below are the documents signed in the presence of Alexey Miller.

RusKhimAlyans and SOGAZ inked a Memorandum of Understanding with the purpose of establishing and advancing a strategic partnership to create an effective system for insurance protection during the implementation of investment projects by RusKhimAlyans. SOGAZ is expected to prepare proposals on possible improvements to the insurance coverage mechanism in the interests of RusKhimAlyans.

Memorandum of Understanding signed by RusKhimAlyans and SOGAZ
Memorandum of Understanding signed by RusKhimAlyans and SOGAZ

Kirill Seleznev, Director General of RusKhimAlyans, and Anton Ustinov, Chairman of Management Board of SOGAZ, at signing ceremony (attended by Alexey Miller)

Vitaly Markelov, Deputy Chairman of the Gazprom Management Committee (on behalf of Gazprom Pererabotka Blagoveshchensk), and Dmitry Konov, Chairman of the Management Board of SIBUR Holding (on behalf of SIBUR Holding and the Amur Gas Chemical Complex), signed an agreement of cooperation. The document outlines the basic terms and conditions of long-term arrangements on the joint use of the infrastructure of Gazprom's Amur Gas Processing Plant (GPP) for the construction of the Amur Gas Chemical Complex (GCC) of SIBUR. For instance, it is planned to use the structures and facilities built by Gazprom, namely, the wharf on the Zeya River, access roads for motor vehicles, vehicle ramps, and railway infrastructure.

Agreement of cooperation signed by Vitaly Markelov, Deputy Chairman of Gazprom Management Committee (on behalf of Gazprom Pererabotka Blagoveshchensk), and Dmitry Konov, Chairman of Management Board of SIBUR Holding (on behalf of SIBUR Holding and Amur Gas Chemical Complex)
Agreement of cooperation signed by Vitaly Markelov, Deputy Chairman of Gazprom Management Committee (on behalf of Gazprom Pererabotka Blagoveshchensk), and Dmitry Konov, Chairman of Management Board of SIBUR Holding (on behalf of SIBUR Holding and Amur Gas Chemical Complex)

Dmitry Konov, Chairman of Management Board of SIBUR Holding, and Vitaly Markelov, Deputy Chairman of Gazprom Management Committee, at signing ceremony (attended by Alexey Miller)

Vitaly Markelov and Sergey Shtepa, CEO of Caspian Innovation Company (CIC), signed a preliminary contract for the supply of liquefied petroleum gases (LPG) from Gazprom's Astrakhan GPP to the prospective Astrakhan GCC of CIC. The document sets out the basic terms and conditions of future supplies under the long-term (20-year) contract, including LPG volumes and the price formula.

Preliminary contract for supply of liquefied petroleum gases (LPG) from Gazprom's Astrakhan GPP to prospective Astrakhan GCC of Caspian Innovation Company signed by Vitaly Markelov and Sergey Shtepa, CEO of Caspian Innovation Company
Preliminary contract for supply of liquefied petroleum gases (LPG) from Gazprom's Astrakhan GPP to prospective Astrakhan GCC of Caspian Innovation Company signed by Vitaly Markelov and Sergey Shtepa, CEO of Caspian Innovation Company

Sergey Shtepa, CEO of Caspian Innovation Company, and Vitaly Markelov, Deputy Chairman of Gazprom Management Committee, at signing ceremony (attended by Alexey Miller)

Background

The St. Petersburg International Economic Forum 2021 is being held at the EXPOFORUM Convention and Exhibition Centre from June 2 to 5. This year's main theme is “A Collective Reckoning of the New Global Economic Reality.”

RusKhimAlyans (a joint venture of Gazprom and RusGazDobycha) is implementing the project for the Gas Processing Complex (GPC) within the Complex for processing ethane-containing gas (CPECG) near the settlement of Ust-Luga.

The GPC of the CPECG is an integrated complex for natural gas processing and liquefaction. The complex will have the biggest capacity in Russia and one of the largest in the world in terms of gas processing (45 billion cubic meters per year), and will be the leader in northwestern Europe in terms of liquefied natural gas production (13 million tons of LNG per year). The gas remaining after the processing will go into Gazprom's gas transmission system in the amount of approximately 18 billion cubic meters per year. Among the GPC's most important marketable products will be ethane, a valuable raw material for the gas chemical industry.

The CPECG includes a gas chemical complex (the GCC of the CPECG; the project operator is Baltic Chemical Complex, a subsidiary of RusGazDobycha) technically affiliated with the GPC. The GCC will process ethane fraction and produce over 3 million tons of polymers per year – the largest output by a single facility worldwide.

SIBUR is implementing the construction project for the Amur GCC, which is technically affiliated with Gazprom's Amur GPP. Preliminary contracts for supplies of ethane fraction and LPG were signed between Gazprom and SIBUR.

In November 2020, Gazprom and Caspian Innovation Company signed an agreement of cooperation for the creation of a GCC in the Astrakhan Region, as well as a preliminary contract for supplies of ethane fraction from the Astrakhan GPP.

 

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