TNK-BP, Sibur partner for hydrocarbon feedstock project
Russian petrochemical company Sibur Holding has signed a partnership agreement with TNK-BP to produce, process and use hydrocarbon feedstock.
The companies have also agreed to extend the Yugragaspererabotka joint venture (JV), created in 2007, until the end of 2026.
The Yugragaspererabotka JV formed between Sibur Holding and TNK-BP includes the Nizhnevartovskiy and the Belozerniy GPPs, Nyagangaspererabotka, as well as pipeline infrastructure.
As part of the agreement, Sibur will acquire a 25% share in Zaykinsky gas processing plant (GPP) in 2013 upon the plant's final modernisation and construction, and the Zaykinsky plant will be jointly managed by the two companies.
The agreement also states that Zaykinsky GPP and its infrastructure will operate as a standalone JV.
Leonid Mikhelson, Sibur Holding Board of Directors chairman, said the company is excited about the future partnership, especially considering the successful track record of the Yugragaspererabotka JV.
The companies are also in talks to enable Sibur to buy the propane / butane mix that is to be produced within the Rospan project, according to Sibur.
"Sibur is consistently focused on expanding its resource base by using both associated petroleum gas and by-products of natural gas processing, which are increasingly involved in our petrochemical operations.''
German Khan, TNK-BP executive director, said the partnership with Sibur plays an important role in solving the company's task of increasing utilisation of the raw material up to 95% by 2015.
''The large-scale gas-refining projects in the Orenburg region and the development of the Rospan assets will open up new opportunities for our joint business and will efficiently solve the problems of properly utilising associated gas, not only in western Siberia, but also in other oil-producing regions of the country," Khan added.
Both the companies will continue cooperation under the existing contracts to increase TNK-BP's use of Sibur's fuel components and other petrochemicals.