Name and Location
ZapSibNeftekhim project, Tyumen region, Russian Federation.

Client
Sibur.

Project Description
The ZapSibNeftekhim project is designed to operate a steam cracker that can handle 1.5-million tonnes a year of ethylene, about 500 000 t/y of propylene and 100 000 t/y of butane butylene fraction, along with other units. The project will have a total capacity to produce 1.5-million tonnes a year of various grades of polyethylene and a 500 000 t/y polypropylene unit.

Value
According to preliminary estimates, total investment in the ZapSibNeftekhim project will amount to $9.5-billion, including the expenditure already incurred and costs budgeted for commissioning.

The project budget will be adjustable, subject to exchange rate and oil price changes.

Duration
Production site infrastructure construction and other works for the project are to be completed within five to five-and-a-half years, which is the international standard timeframe for projects of this scale.

Latest Developments
The first foundations have been laid at ZapSibNeftekhim.

All of the designs for the project were completed and approved by Russia’s General Board of State Expert Review in late 2014. In January 2015, Tobolsk City Administration issued the relevant construction permit.

Most on-site preparations have been completed.

Contracts have been signed and initiated for the detailed design work, equipment and materials supplies for the facility's key process units.

NIPIgaz, Russia's leading engineering centre in the gas processing industry, has been contracted to design infrastructure and off-site facilities.

Key Contracts and Suppliers
Linde (steam cracker), INEOS (polyethylene unit), LyondellBasell (polypropylene unit) and NIPIgaz.

On Budget and on Time?
The company has streamlined its capital expenditure (capex) programme by considerably reducing its target spend on the project in 2015. Following a capex review and adjustment to the equipment order and lead time schedules, and taking into account the navigation timeframe, the construction of the facility might take longer than previously planned.

Contact Details for Project Information
Sibur international media relations, Anna Lebed-Lastukhina, tel + 7 495 937 17 26 or email LebedAI@sibur.ru.
Linde head of external communications Uwe Wolfinger, tel +49 89 357 57 1320 or email uwe.wolfinger@linde.com.
INEOS, tel +41 21 627 7040.
LyondellBasell, George Smalley, tel +1 713 309 7575 or email george.smalley@lyondellbasell.com.