In July, SIBUR made a test shipment of LPG to China. In late August, the company signed a long-term contract with a Chinese customer for regular liquefied petroleum gas (LPG) supplies to the growing Chinese market, SIBUR informed.
The product will be shipped by rail from Nyagan GPP (gas processing plant), a subsidiary of SIBUR. Initial supply volumes will total around 20 ktpa with further increase outlook.
SIBUR will be the first Russian company to supply LPG to China. When planning the transportation route, it was important to take into account that there are no LPG transshipment facilities on the Russian–Chinese border. It was therefore decided to supply the product in tank containers and further transport them through China by low loaders. A test shipment of LPG to China was made in July, and this proved the efficiency of this approach.
LPG consumption in China is growing rapidly. According to IHS, it amounted to 27.6 million tonnes in 2013, up 9% y-o-y, with 3 million tonnes imported annually.
OJSC SIBUR Holding (tax number: 7727547261) is the largest Russian manufacturer of petrochemical goods, in particular, rubbers, tires, polymers and liquefied gases. In 2011, SIBUR processed more than 18 billion cubic meters of associated gas. SIBUR Holding's beneficiaries Leonid Mikhelson and Gennady Timchenko hold 82.5%, former and current managers of SIBUR LLC and OJSC SIBUR Holding 17.5% of the company's shares.
IFRS net profit of SIBUR Holding for 2013 dropped by 24.3% to RUB 45.458 billion. Revenue decreased by 0.6% to RUB 269.8 billion from RUB 271.33 billion, EBITDA by 4.2% to RUB 78.862 billion from RUB 82.291 billion.
RAS net profit of SIBUR Holding for 2013 dropped by 10% to RUB 47.364 billion. Revenue stood almost flat (RUB 243.209 billion), while GP decreased to RUB 96.035 billion from RUB 101.947 billion.