Novatek's Cooperation with Sibur Paves Way to Integrated Chain

Russian companies are strengthening cooperation to support investments and foster national infrastructures, with Novatek and Sibur reporting significant progresses in the Yamal-Nenets Autonomous Area on Wednesday.

'Novatek and Sibur 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,' reads a note released on Wednesday.

Novatek announced the expansion of its Purovsky Gas Condensate Processing Plant’s capacity from 5 to 11 million tons per annum, while Sibur said it has completed the construction of the raw NGL pipeline from the Purovsky Plant to Tobolsk-Neftekhim.

'Sibur’s 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.'

According to the press release, the NGL pipeline is 1,100 kilometers long. Additional construction works are said to be in progress. The vertically integrated gas processing and petrochemicals company is completing the installation of power lines, automated control systems and communication equipment. It is also working on access roads.

“The partnership between Novatek and Sibur has successfully integrated the development of new gas fields and NGLs production from gas condensate with the construction of raw NGL pipeline infrastructure and capacities for deeper processing of hydrocarbon feedstock. For Sibur, this is a key project ensuring stable and guaranteed access to feedstock in Western Siberia and opening up opportunities for future investment projects in petrochemicals,” Sibur's Leonid Mikhelson commented.