MOSCOW (MRC) -- SIBUR, a Russian gas processing and petrochemicals company, and Linde Group, a German Technology company, have signed agreements to build and operate new air separation units in Dzerzhinsk, the Nizhny Novgorod Region, reported SIBUR on its site.
On a long-term basis, SIBUR will provide Linde with a leased site and power supply while Linde, in its turn, will supply technical gases to SIBUR.
Linde will be investing EUR 70 million in the ASUs. The new on-site plants are expected to come on stream at the end of 2015.
In an initial step Linde will assume responsibility for SIBUR’s existing air separation unit at its Dzerzhinsk site. As part of the next step Linde will build a new air separation unit, which - on completion - will be operated by Linde's Gases Division.
The main aim of the new unit is to supply the oxygen, nitrogen and compressed air required to SIBUR’s local ethylene oxide and glycols plants. 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. The new unit will have a total production capacity of around 30,000 cubic metres of gaseous oxygen per hour.
"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," commented Valery Andosov, Director for Strategy, SIBUR's Plastics and Organic Synthesis Division.
We remind that, as MRC wrote previously, earlier this year SIBUR launched a sales office in Ekaterinburg to facilitate distribution of its basic polymers across the Urals Federal District. The newly-established office in one of the majors Federal Districts of Russia will bring the company closer to its consumers and ensure timely response to the clients' needs, while promoting high-quality service. The representative office will market SIBUR"s polyethylene (PE) and polypropylene (PP) both to large industrial consumers and SME customers.
The Linde Group is a world-leading gases and engineering company with around 62,000 employees in more than 100 countries worldwide. In the 2012 financial year, Linde generated revenue of EUR 15.280 bn.
SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.
MRC