Valery Golubev, Deputy Chairman of Gazprom’s Management Committee, and Dmitry Konov, Chairman of SIBUR’s Management Board, signed a long-term agreement on ethane fraction supplies. The deal was closed today at the St Petersburg International Economic Forum.

The document provides more details on the basic terms and conditions of a previously signed preliminary agreement for the future 20-year ethane fraction supplies from Gazprom’s Amur Gas Processing Plant (GPP) to SIBUR’s Amur Gas Chemical Complex (GCC). In particular, the document specifies the volume (ca. 2 mtpa), the pricing formula and the Parties’ responsibility for ensuring stable supplies and feedstock reception.

The deal has secured long-term ethane fraction sales for Gazprom, while SIBUR is now able to continue developing the Amur GCC project.

This partnership will foster the creation of the largest gas processing and gas-chemical cluster in the Amur Region to boost the economic and social development of the entire Far Eastern Federal District.

Source: Company Press Release