Germany-based technology company Linde Group has inked agreements with Russian gas processing and petrochemicals company SIBUR to build and operate air separation units (ASUs) in the city of Dzerzhinsk, Russia.
Under the agreement, Linde will invest EUR70m in the ASUs.
SIBUR, on a long term basis, will provide a leased site and power supply to Linde, while Linde will supply technical gases to SIBUR.
Under the contract, Linde will then build a new ASU with a total production capacity of around 30,000 cubic metres of gaseous oxygen per hour.
The new ASU is being built to supply oxygen, nitrogen and compressed air required to SIBUR’s local ethylene oxide and glycols plants.
Upon completion, the new unit will be operated by Linde`s Gases Division.
Linde will also be responsible for SIBUR’s existing air separation unit at its Dzerzhinsk site.
SIBUR Plastics and Organic Synthesis Division strategy director Valery Andosov said, "This deal will enhance the operational efficiency of SIBUR’s ethylene and glycols plant in Dzerzhinsk and enable us to further strengthen our leading positions in Russia and CIS markets."
Linde will also supply air gases to other customers at the Dzerzhinsk chemicals hub, as well as to the regional market in Nizhny Novgorod and beyond.
SIBUR Plastics and Organic Synthesis business unit head and managing director Sergey Merzlyakov said, "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."
The new on-site plants are expected to come on stream at the end of 2015.