SIBUR and Cryogenmash sign agreement

SIBUR and Cryogenmash (part of the OMZ Group) have recently signed an agreement to build an industrial gas production facility at ZapSibNeftekhim (currently under construction). The industrial gases, including nitrogen and dry compressed air, will be used at all core facilities of ZapSibNeftekhim ranging from key production units to off-sites. The use of dry compressed air provides an opportunity to effectively control production processes, while the application of nitrogen ensures their safety.

Under the agreement, Cryogenmash-Gas-Tobolsk, a subsidiary of Cryogenmash, shall act as the designer, the equipment supplier and the contractor during the construction of a dry air and nitrogen production facility at ZapSibNeftekhim. Once the facility is commissioned, Cryogenmash-Gas-Tobolsk will be engaged on the long-term basis to operate it and supply industrial gases to ZapSibNeftekhim. In its turn, ZapSibNeftekhim undertakes to purchase a certain volume of industrial gases under off-take contracts featuring pre-approved formula-based prices. The design capacity of the new production facility will be up to 37,000 Nm3/h of nitrogen and 28,000 Nm3/h of dry compressed air, fully covering ZapSibNeftekhim’s industrial gas needs.

“Industrial gas production is not one of SIBUR’s core operations, so we seek to cooperate with Cryogenmash and other industry leaders, signing agreements to outsource our industrial gas supplies. This allows us to focus on the production of petrochemical products that fully meet the needs of our clients,” commented Vasily Nomokonov, Managing Director of SIBUR.

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