SIBUR starts construction of sea LHG terminal in Ust-Luga

SIBUR has acquired 100%-stock in authorized capital of Portenergo LLC from Company Ust-Luga OJSC, the company’s press release states.  Portenergo LLC is a building owner of LHG transshipment complex in the port of Ust-Luga. Earlier SIBUR signed a memorandum with Company Ust-Luga OJSC on implementation of a project for construction of LHG terminal.

In March 2007, interdepartmental commission of Leningrad region administration on economics of location approved Portenergo’s declaration on intent to invest into construction of LHG transshipment complex. The declaration also includes preliminary approved environmental impact assessment.

Portenergo LLC is to continue activities on project authorization. Construction is to start in 2008 and the first phase is to be put into operation in 2010. The capacity of the first phase is to make about 300-400 thou tonnes of liquefied hydrocarbon gas per year. The second phase is to transship additionally 600-700 thou tonnes of LHG per year.

In 2006 SIBUR produced 2.9 million tonnes of LHG. "Implementation of projects on development of our gas processing facilities will result in growth of LHG production,” Dmitri Konov, SIBUR president said. The terminal will make it possible to increase export capacity of SIBUR at Western European markets.