Sinopec to Enter Amur Gas Chemical Project: Report

China's Sinopec and Russian petrochemicals firm Sibur have signed a shareholder agreement on forming a joint venture to operate the latter's Amur gas chemical complex (GCC) in the Russian Far East, the Moscow-based Ria Novosti reported on June 30, citing Sibur's Eurobond prospectus.

The pair reached the deal in June but are still waiting for regulators to clear it, the news agency said. The plan is for Sinopec to take a 40% stake in the venture.

Sibur has been struggling for years to bring on board a partner at the Amur GCC to help share its estimated $10.7bn cost. The delay has prevented it from taking a final investment decision on construction.

The plant in the Amur region bordering China will receive 3.5mn mt/yr of ethane and LPG feedstock from Gazprom's nearby Amur gas processing plant, which is set to start processing gas being pumped to China via the Power of Siberia in 2023. The Amur GCC is expected to turn out 2.3mn mt/yr of polyethylene and 400,000 mt/yr of polypropylene, most of which will be exported to China and other Asia-Pacific markets.

Sibur has been in talks for Sinopec to take a stake in the project since 2015. That year the Chinese company brought a 10% stake in Sibur to increase its exposure to Russia's growing petrochemicals sector.