Sibur, Russia’s largest petrochemical producer, is set to sign a gas supply deal that could significantly increase the capacity of a planned plant aimed at the Chinese market, spurring billions of dollars of further investment, said the Financial Times.
The liquid petroleum gas (LPG) supply deal with gas producer Gazprom would allow Sibur and its Chinese partner Sinopec to increase output from the Amur plant close to the Chinese border by 80%. The preliminary, in-principle supply agreement is set to be signed next week at an economic forum in Vladivostok, Russia.
The Amur chemical plant is one of the most prominent in a string of Sino-Russian business deals announced in recent years, as part of Russian president Vladimir Putin’s pivot towards Beijing. Sinopec owns 10% of Russia’s Sibur, while another 10% of the company is held by the Chinese state-controlled Silk Road Fund.