Pyt-Yakh (Khanty-Mansi Autonomous Area),15 December 2012. Yuzhno-Balyksky GPP hosted an official ceremony to launch a low-temperature condensation and rectification unit. The outcome of the project is expected to result in 98% recovery rate of desired fractions in processing of associated petroleum gas, which is on a par with the global benchmarks.

The ceremony was attended by the Governor of Khanti-Mansi Autonomous Area - Ugra Natalia Komarova, CEO of SIBUR Dmitry Konov, Executive Director of SIBUR Mikhail Karisalov, Managing Director of SIBUR Konstantin Belkin and other senior public and SIBUR officials.

Commissioning of the new unit is expected to raise the NGL production capacity by around 120 thousand tonnes per year. The surplus amount of NGL will be transported to SIBUR’s facilities to be processed into the liquefied petroleum gases and petrochemical products.

The key supplier of associated petroleum gas to the Yuzhno-Balyksky GPP is Rosneft.

Construction of the new unit was started back in March 2011 with LENNIIKHIMMASH OOO (St Petersburg) as the designer and supplier of technological equipment and KAZANCOMPRESSORMASH OAO as the supplier of the compressor equipment.

Investments into the project reached approximately RUB 2.4 billion.

The commissioning of the new unit completes yet another phase in a large-scale modernisation programme to bring the APG conversion rate at the Company’s facilities up to the level of the global leaders while also increasing the feedstock base to fill the Purovsky Plant – Yuzhno-Balyksky MPS Tobolsk-Neftekhim pipeline currently under construction.

Referenceinformation:

SIBURmakes consistent effort to enhance its capacity to receive and achieve higher APG processing rates. In the last year the company almost doubled its APG throughput to over 18 billion cu. m per year.

Modernization of Yuzhno-Balyksky GPP was started in 2007. At the first stage the plant was reconstructed and its APG receiving capacity increased from 0.9 to 1.5 billion cu. m per year. In 2009, the second stage of the unit was commissioned, bringing the total capacity of the GPP up to 3 billion cu. m of APG per year.

In 2010, Gubkinskiy GPP reached 99% recovery rate of desired fractions. This was the highest rate achieved by any Russian company by that time.

In September 2012, the Company commissioned Vyngapur GPP, which is a brown-field initiative based on the existing compressor station of the same name. The project resulted in increased capacity of the plant in terms of receiving APG and brought the recovery rate up to 99%.

Increased production of light hydrocarbons in West Siberia drives the development of the West Siberian petrochemical cluster as stipulated by the Governmental Gas and Petrochemical Industry Development Plan through 2030.

To transport additional volumes of the hydrocarbons, SIBUR has already launched construction of a new main NGL pipeline Purovsky Plant – Yuzhno-Balyksky MPS – Tobolsk-Neftekhim; these activities also carried out in accordance with the above Plan.

NewpipelinecapacityaddedtotheexistingpipelinesofSIBURwill establish a basis for further cooperation with oil and gas companies in the region so as to make use of the light hydrocarbons associated with the production and primary processing of gas condensate, APG and natural gas.

The Natural Liquid Gas (NGL) is produced through processing of associated petroleum gas and gas condensate. It is a mixture of liquid hydrocarbon gases and heavier hydrocarbons and is used as feedstock to produce a wide range of petrochemical products (polymers, synthetic rubbers, organic synthesis products) and gas motor fuel (motor propane/butane).