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SIBUR & Air Products Sign Papers to Build Gas Production Unit

Source: www.gulfoilandgas.com 12/16/2014, Location: Asia

SIBUR-Khimprom (a subsidiary of SIBUR Holding) and Air Products have entered into an agreement to build a new air separation unit in Perm and to supply the facility with locally produced gases. The document was signed by Air Products CEO Robert Peter Mills and SIBUR-Khimprom CEO Gennady Shilov.

Under the deal, Air Products will supply industrial gas to SIBUR's Perm subsidiary as agreed and invest its own cash to build and operate the new air separation unit.

SIBUR-Khimprom will build relevant facilities and utilities, lease out the site and act as the buyer under fixed price off-take contracts.

This deal will help SIBUR-Khimprom cut down on industrial gas pricing, improve supply and focus on developing its new and current core operations.

The unit will comply with the most advanced usage, safety and efficiency standards. Its capacity will be c. 30,000 cu m of gaseous nitrogen per hour and c. 6,000 cu m of dry compressed air per hour, meeting the needs of SIBUR's Perm facility. The unit is set to come on stream in 2016. After the commissioning Air Products will supply industrial gases for SIBUR-Khimprom over the next 20 years.

This is the fourth SIBUR partnership for industrial gas production. Similar projects include facilities in Voronezh (in partnership with Air Products), Dzerzhinsk (with Linde Gas) and Tomsk (with Cryogenmash-Gas).

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