Gazprom eyes gas foundation in Far East market

Nov. 1, 2013 at 8:23 AM
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MOSCOW, Nov. 1 (UPI) -- Russian gas company Gazprom said Friday it was teaming up with gas processing company SIBUR to build a processing plant in the Far East.

"Gazprom is planning to construct a gas processing plant in Belogorsk [near northeast China] with the annual capacity of up to 2.1 trillion cubic feet, where ethane and other valuable components will be stripped from natural gas," the company said in a statement. "SIBUR, in its turn, intends to create a gas chemical complex technologically connected with the gas processing plant for the purpose of processing ethane."

Gazprom provided no financial terms for the deal. The company said the partnership would draw gas from the Chayandinskoye and Kovyktinskoye fields, which contain a combined 95 trillion cubic feet of estimated gas reserves.

Gazprom has focused its efforts on meeting the energy demands of expanding Asian economies.

"The joint activities will result in a considerable economic effect and become an extra incentive for developing Eastern Siberia and the Far East," Gazprom Chairman Alexei Miller said in a statement.

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