SIBUR Holding OJSC and Republican Unitary Enterprise Belorusneft Production Association have signed an agreement to cooperate on activity in the Belarus petrochemicals sector over the next two years.

The parties have agreed to expand NGL deliveries from Russia, thereby ensuring stable sales of LPG on the Belarus domestic market.

From 2009-2011 SIBUR will become a strategic partner of Belorusneft, with plans to supply over 600,000 tonnes of NGL’s to the company’s gas processing plants over the three years period.

SIBUR President Dmitriy Konov explained, “We are looking forward to fruitful cooperation with our Belorussian colleagues. SIBUR is working hard to expand its own gas processing facilities in Russia and sees good prospects for joint gas processing in Belarus to meet domestic demand there and to boost our companies’ export potential.”

The two companies have also begun assessing the prospects for a new gas fractionation unit with capacity of 750,000 tonnes of NGL’s per year, at the Belorusneft site. If the project goes ahead, SIBUR will be able to boost its NGL deliveries to the Republic of Belarus by up to several-fold.