Russian petrochemical manufacturer Sibur Holding and Russian gas giant Gazprom have signed a long-term contract to supply natural gas liquids (NGL) from the Surgut Condensate Stabilization Plant to the Tobolsk-Neftekhim facility up to 2021, a joint company statement said Monday.
The agreement will see the annual supply of NGLs rise to 1 million mt from 440,000 mt between 2012 and 2016.
Hydrocarbon feedstock volumes beyond 2016 will be agreed at a later date.
"Issues surrounding long-term raw material supplies are important for the company's investment development," said Sibur CEO Dmitry Konov.
"Through a strategic partnership with Gazprom and other leading oil and gas companies, Sibur is able to multi-source light hydrocarbons, providing a base for the sustainable growth of petrochemical production," he added.
The contract provides for formula pricing with reference to market conditions for NGL product processing and the cost of transportation and NGL fractionation.
In addition, the parties agreed to continue talks on supplying hydrocarbon feedstock to Sibur gas-petrochemical enterprises in other regions of Russia.
