The companies will hold interest in the JV in the amount of 60% and 40%, respectively.
In June 2019, the parties agreed on the main terms and conditions of the potential JV.
Set to become the world’s largest basic polymer production facility, Amur GCC will have a capacity of 2.7 mtpa, including 2.3 mtpa of polyethylene and 400 ktpa of polypropylene, and will be producing a wide range of grades.
Set to become the world’s largest basic polymer production facility, Amur GCC will have a capacity of 2.7 mtpa, including 2.3 mtpa of polyethylene and 400 ktpa of polypropylene, and will be producing a wide range of grades.
Dmitry Konov, CEO of SIBUR said:
The construction of Amur GCC proceeds in synch with the gradual ramp-up of Gazprom’s Amur GPP to its full capacity, so that the latter could supply ethane and LPG to Amur GCC for processing into high value-added products. - SIBUR and Sinopec have a long track record of jointly delivering on large-scale investment projects
- creating a joint venture is a major milestone in our Amur GCC project
- with Sinopec we will be able to maximise the project’s efficiency
- in particular optimising and balancing the facility's future debt portfolio
- while also enhancing its expertise in distribution across Asian markets
The completion of construction and commissioning is scheduled for 2024.
Zhang Yuzhuo, Chairman of Sinopec noted:
The Amur GCC project will help attract international investments in the Russian economy. - Amur GCC will also become a model for Sino-Russian energy cooperation to extend to downstream chemical industry
- it will inject new impetus into advancing the high-quality cooperation between the 2 countries in the fields of energy, chemical industry, investment, economy and trade
- it will play a positive role in effectively promoting the sound interaction of domestic and international markets
- as well as the economic development, employment and social well-being of the Far East region
Given the facility’s geography, its products will be targeting Asian markets, primarily China, which is the largest consumer of polymers globally.
Amur GCC’s budget is tentatively estimated at $10 billion to $11 billion and is subject to adjustments as the project progresses. In December, Amur GCC attracted $1.5 billion in bridge financing from a syndicate of Russian banks.
Gazprombank acted as the lead arranger and lender, with Otkritie and Sberbank as arrangers and lenders.
Gazprombank acted as the lead arranger and lender, with Otkritie and Sberbank as arrangers and lenders.
To read the article in Russian.
