OREANDA-NEWS. August 7, 2007. SIBUR and Fluor management company have chosen the licensors of the project on construction of propane dehydrogenation and polypropylene production complex at Tobolsk-Polymer LLC in Tobolsk.

After the review of a detailed technical and economic study the technology of UOP Company (USA) for propane dehydrogenation and the technology of INEOS Company (UK) for polypropylene production were chosen.

New propane dehydrogenation unit will be the largest one in the world with the capacity for 510000 kta of propylene. The annual capacity of new polypropylene production site is estimated at 500000 tonnes, which is one of the highest levels within the industry. Presently, SIBUR produces 110 kta of polypropylene.

According to the contract, the licensors will prepare project documentation which includes process conditions, equipment specification as well as essential health, safety and environment (HSE) measures. The licensors will grant to SIBUR process know-how and rights for the final products sale.

Background:

UOP Company founded in 1914 is the subsidiary of aerospace corporation Honeywell. It is the world leading engineer and licensor in gas processing and petrochemical industry. For more information, please visit (www.uop.com).

Ineos (www.ineos.com) is the world leading petrochemical company possessing unique technologies for chemical and petrochemical production. It works in 17 countries implementing its solutions at 68 production sites.

In April 2006 SIBUR established a 100 per cent subsidiary Tobolsk-Polymer LLC to implement the investment project of new polypropylene production by propane dehydrogenation in Tobolsk city of Tyumen region. In January 2007 SIBUR chose Fluor Company (Project Management Company) to manage the project.

In February 2007 SIBUR and the Authorities of Tyumen region signed the agreement for the joint housing construction including housing for employees working at the new production site. Presently, construction works of the first stage of two 12-floor apartment blocks scheduled for commissioning in June 2008 have been started.

Moreover, in February 2007 SIBUR and NOVATEK signed the framework agreement which stipulates the possibility to launch a JV on the basis of Tobolsk-Polymer LLC.