Russian petrochemical company Sibur and German gases and engineering company Linde have signed a design development agreement for an ethylene cracker unit at the ZapSibNeftekhim petrochemical complex in Tobolsk, Tyumen Oblast, Russia.
The agreement was signed by Leonid Mikhelson, Wolfgang Reitzle and Aldo Belloni during the 16th St. Petersburg International Economic Forum.
The annual output capacity of the new unit, which will be the largest of its kind in Russia, is expected to be 1.5m tons of ethylene, 500,000 tons of propene and 100,000 tons of butadiene.
Linde will take responsibility for developing FEED (front end engineering and design) documentation and the relevant sections of the overall design package.
Leonid Mikhelson, Sibur Holding JSC chairman of the Board of Directors, said the company is commencing comprehensive development of its largest project that will change the image of the company and of the Russian petrochemical sector.
"We hope that by engaging the world class licensors and engineering companies we will establish an efficient production facility to successfully compete in both the Russian and the foreign markets," Mikhelson added.
Aldo Belloni, Linde Executive Board member, said: "We also hope that this agreement will lead to further key contracts for our engineering business in this Eastern European growth market."
Sibur has selected Ineos Technologies, LyondellBasell, Technip and ThyssenKrupp Uhde as FEED partners and licensors, and all the FEED packages are scheduled to be finalised in 2013.
Image: Sibur and Linde signed the agreement at the 16th St. Petersburg International Economic Forum. Photo courtesy of: Sibur.