SIBUR and Stroytransgaz OJSC have recently signed an agreement to carry out preparatory ground works for the expansion of gas processing facilities in the Noyabrsk region (Yamalo-Nenetsky Autonomous District).
The expansion plans include construction of Vyngapurovsky GPP, a loading rack nearby Noyabrsk City and an NGLs pipeline, as well as reconstruction of the Vyngayakhinskaya compressor station.
Stroytransgaz OJSC is likely to be involved in implementation of the main part of the expansion project. Estimated terms of implementation are 2008-2011.
Vyngapurovsky GPP with a capacity of 3 billion cu m per year processes APG incoming from the oil fields owned by Gazprom neft OJSC to produce dry stripped gas and natural gas liquids.
Meanwhile SIBUR, Russia’s leading petrochemical company, is continuing to implement its key strategic priorities including developing existing plants and constructing new production facilities, despite the current global economic and financial instability.
The company’s management is reviewing all elements of plans to ensure that it is properly aligned to the current turbulent trading and financial environment. The review recognises that in recent months many customers are managing their cash flow more tightly and experiencing declining sales.
In addition, SIBUR is taking additional steps to address the impact of the negative trading environment, with a key focus in the near future to be the implementation of a significant reduction in costs and optimisation of business processes.
Furthermore, the company is also reviewing the temporary reduction of production volumes, setting new priorities for the investment programme, and tighter management of working capital.