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BRICS New Development Bank may finance two Sibur projects — Finance Ministry

The BRICS New Development Bank can extend a loan for two projects in Russia - the Amur gas processing plant and the petrochemical plant in Tobolsk - by the year-end

MOSCOW, May 21. /TASS/. The BRICS New Development Bank (NDB) can extend a loan for two projects in Russia - the Amur gas processing plant (GCP) and the petrochemical plant in Tobolsk - by the year-end, the Russian Finance Ministry said on Monday.

"The New Development Bank is currently considering in respect of possible financing the application of Sibur Company for construction of the petrochemical plant in Tobolsk and the Amur GPP construction project, implemented in the context of the Power of Siberia gas pipeline construction agreement," the Finance Ministry says.

At the same, the decision on participation of the bank in these projects has not yet been taken and applications have not been presented to the NDB Board of Directors, the ministry says. "The applications undergo review by the management of the Bank and proactive consultations with potential borrowers are held. If all conditions are negotiated, the issue of credit extension can be considered by the end of this year," the Russian ministry says.

Sibur will take the investment decision on the Amur Gas Chemical Plant project in 2019, CEO of the holding Dmitry Konov said on Friday.

The Amur GCP is scheduled for commissioning in 2021 at the earliest. The gas chemical plant will process fractions of the natural gas. The main feedstock supplier for the GCP will be the Amur Gas Processing Plant of Gazprom, which will be built within the framework of gas supplies to China over the Power of Siberia gas pipeline.

In February 2019, Sibur and Gazprom made a preliminary agreement setting key commercial terms of ethane supply from the Amur GPP to the Amur Gas Chemical Plant.