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Russia’s Sibur starts liquefied petroleum gas supplies to China

August 28, 2014, 16:49 UTC+3 MOSCOW

LPG will be shipped by rail from the Nyagan gas processing plant, a subsidiary of Sibur

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© ITAR-TASS/Alexei Nikolsky

MOSCOW, August 28. /ITAR-TASS/. The Russian petrochemicals firm Sibur made a test shipment of liquefied petroleum gas (LPG) to China in July and signed a long-term contract with a Chinese customer in August, Sibur said on Thursday.

The contract stipulates “regular liquefied petroleum gas supplies to the growing Chinese market,” Sibur said in a statement.

LPG will be shipped by rail from the Nyagan gas processing plant, a subsidiary of Sibur. Initial supply volumes will total 20,000 tons a year with a prospect of further increases, the statement said.

“Sibur will be the first Russian company to supply LPG to China,” the statement said.

When planning the transportation route, it was important to take into account that there are no LPG transshipment facilities on the Russian-Chinese border,” Sibur said.

“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,” the statement said.

LPG consumption in China is growing rapidly. IHS data show that China consumed 27.6 million tons of LPG in 2013, or 9% more than in the previous year, with 3 million tons imported annually.

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