Russia’s Novatek, Sibur announce NGL transportation, processing capacity additions

June 5, 2014

Novatek and Sibur have reported to Russia’s President Vladimir Putin on completion of a series of projects aimed at creating an integrated technological chain from hydrocarbon production to deep processing in Russia, Novatek’s and Sibur’s press offices have said. The announcement was made at a meeting of the Presidential Commission for Strategic Development of the Fuel and Energy Sector and Environmental Security held in Astrakhan.

During the teleconference held in the town of Purovsk (Yamal-Nenets Autonomous Region), Notatek announced the expansion of its Purovsky Gas Condensate Processing Plant’s (“Pursovky Plant”) capacity from five (5) to 11 million tons per annum (“mtpa”) providing for the additional volumes of natural gas feedstock for gas processing and petrochemical production. This discussion was followed by a teleconference from Tobolsk, where Mikhail Karisalov, Sibur Executive Director, informed Russia’s President Vladimir Putin that a new raw NGL (“natural gas liquids”) pipeline between the Purovsky Plant and the Tobolsk production site had commenced testing operations and had already transferred first volumes of raw NGL from the Purovsky Plant to the expanded gas fractionation capacities at Tobolsk-Neftekhim.

Sibur has completed the construction of the raw NGL pipeline from the Purovsky Plant to Tobolsk-Neftekhim with a length of over 1,100 kilometers (“km”) length. As of today, the pipeline sections from the Purovsky Plant - Noyabrsk loading rack and the Noyabrsk rack - Yuzhno-Balyksk Main Pumping Station (“MPS”) with combined length of 686 km have been put into commercial operation and filled with raw NGL. The pipeline section from Yuzhno-Balyksk MPS to Tobolsk-Neftekhim with a length of 414 km is being commissioned.

Source: Novatek and Sibur Press Offices, 2014