Rosneft has signed an agreement with gas processing and petrochemicals company Sibur to increase associated petroleum gas (APG) supplies from its oil fields to processing facilities owned by the Yugragazpererabotka joint venture.
The supply will be increased to 10 billion cubic metres per annum through 2032.
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Yugragazpererabotka is 49% owned by RN-Holding and owns and operates the Nizhnevartovskiy, Belozerniy and Nyagangazpererabotka gas processing plants (GPPs) along with the pipeline infrastructure that transports APG from compressor stations to the GPPs.
Under the terms of the agreement, Sibur will sell dry gas produced at Nizhnevartovskiy and Belozerniy gas processing plants to Rosneft and will also buy a 49% share in the Yugragazpererabotka JV from RN-Holding, increasing its interest in the joint venture to 100%.
Sibur guarantees processing of all Rosneft-supplied APG volumes and plans to expand its two compressor stations.
Sibur CEO Dmitry Konov said that by signing the agreement the company reaffirms its commitment to the corporate strategy of securing long-term access to feedstock.
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By GlobalData"The extended tenor of the APG contracts highlights the strong ties between Sibur and Rosneft, which remains the key APG supplier for Sibur’s gas processing facilities," Konov added.
Rosneft president Igor Sechin said: "The agreement to increase our APG supplies to Sibur is perfectly in line with our gas strategy as it will help us monetise Rosneft’s gas potential, hit the 95% target ratio of associated gas utilisation across Rosneft’s fields, and produce high-value-added gas-derived products."
Image: Rosneft headquarters in Moscow. Photo: courtesy of Rosneft.
