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Sinopec, SIBUR set up joint venture

By Liu Yukun | chinadaily.com.cn | Updated: 2020-12-28 22:14
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Employees walk past facilities of the Amur gas processing plant under construction in Amur region, Russia, in November. [Photo/Agencies]

SIBUR Holding, Russia's leading petrochemicals company, and China Petrochemical Corp (Sinopec), China's leading energy and chemical company, have closed a deal to set up a joint venture at the Amur Gas Chemical Complex after obtaining all necessary approvals from regulators in both countries.

SIBUR and Sinopec will hold respective interest in the joint venture in the amount of 60 percent and 40 percent. Both sides agreed on the main terms and conditions of the potential joint venture early in June.

Set to become the world's largest basic polymer production facility, Amur GCC will have a capacity of 2.7 million tons per annum, including 2.3 mtpa of polyethylene and 400,000 tons per annum of polypropylene. Amur GCC's budget is tentatively estimated at $10 to $11 billion.

Amur GCC is scheduled to complete construction and commissioning by 2024.

"SIBUR and Sinopec have a long track record of jointly delivering on large-scale investment projects and implementing advanced production technologies. Creating a joint venture is a major milestone in our Amur GCC project," said Dmitry Konov, chairman of the management board at SIBUR. "With Sinopec's involvement, we will be able to maximize the project's efficiency, in particular optimizing and balancing the facility's future debt portfolio while also enhancing its expertise in distribution across Asian markets."

"Amur GCC is a milestone in the cooperation between Sinopec and SIBUR, and will also become a model for Sino-Russian energy cooperation to extend to the downstream chemical industry. The success of Amur GCC will inject new impetus into advancing high-quality cooperation between the two countries in the fields of energy, chemical industry, investment, economy and trade and 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," said Zhang Yuzhuo, chairman of Sinopec.

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