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SIBUR & Linde Sign EUR 70m Contract in Russia

Source: www.gulfoilandgas.com 6/17/2013, Location: Asia

Technology company The Linde Group will be managing the gas supply infrastructure of SIBUR, the largest petrochemical company in Russia, CIS and Eastern Europe, at its Dzerzhinsk site in the Nizhny Novgorod region of Russia, also building and operating two new air separation units (ASUs). Both companies signed a long-term contract to this effect. Under the deal, Linde will be investing EUR 70 million in the ASUs. The new on-site plants are set to come on stream at the end of 2015.

“We are delighted to build further on our long-standing, successful relationship with SIBUR through this new project,” said Professor Dr Aldo Belloni, Member of the Executive Board of Linde AG. “This on-site deal bears further testimony to the success of our integrated business model. Our customers can rely on us for a one-stop service covering both the delivery of turnkey petrochemical plants and the enabling gas supplies.”

“This deal will enhance the operational efficiency of SIBUR's ethylene oxide and glycols plants in Dzerzhinsk and enable us to further strengthen our leading positions in Russia and CIS markets,” commented Valery Andosov, Director for Strategy, SIBUR's Plastics and Organic Synthesis Division. “We are glad to execute this deal with Linde, a long-time and well-established partner for SIBUR. The new unit will supply industrial gases not only to SIBUR's plant in Dzerzhinsk but also to other businesses. By outsourcing industrial gas supply, SIBUR will be able to focus on developing its core operations,” said Sergey Merzlyakov, Managing Director – Head of Plastics and Organic Synthesis business unit at SIBUR.

In an initial step, Linde will assume responsibility for SIBUR's four ASUs in Dzerzhinsk and modernise these plants in order to increase energy efficiency. As part of the next step, Linde’s Engineering Division will build two new ASUs, which – on completion – will be operated by Linde’s Gases Division. They will have a total production capacity of around 30,000 normal cubic metres of gaseous oxygen per hour (Nm3/h). The main aim of the new ASUs is to supply the oxygen, nitrogen and compressed air required for SIBUR's local ethylene oxide and glycols plants.

Linde will also use the plants to supply air gases to other customers at the Dzerzhinsk chemicals hub via an extended pipeline network. In addition, it will deliver liquid oxygen, nitrogen and argon to the regional market in Nizhny Novgorod and beyond. Linde is currently engaged in two other projects with SIBUR at its Tobolsk site in Western Siberia. In June 2012, Linde won a licensing and Front End Engineering Design (FEED) contract for one of the world’s largest ethylene plants. At Tobolsk, Linde also constructed a polypropylene plant, with an annual capacity of 500,000 tonnes, which is currently being put into operation.

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