Construction of Amur GPP launched

Alexey Miller, Chairman of the Gazprom Management Committee, attended the ceremony.

The Amur GPP will be Russia’s major and one of the world’s major gas processing facilities with the nominal capacity of up to 49 billion cubic meters of gas a year. The gas processing plant will also include a helium production block with the annual output of up to 60 million cubic meters – the most extensive one around the globe. The plant will be built using Linde (Germany) technologies.

The Amur GPP is an essential part of the process chain of natural gas supply to China via the eastern route under the biggest-ever contract. Multi-component gas will be delivered to the GPP via the Power of Siberia gas pipeline from the Yakutia and Irkutsk gas production centers being built by Gazprom within the Eastern Gas Program. The GPP will strip from natural gas the following valuable components necessary for gas chemistry and other industries: ethane, propane, butane, pentane-hexane fraction and helium. The processed gas will be supplied to China.

“Today Gazprom launched the construction of a state-of-the-art and powerful facility – the Amur GPP. This is a milestone event for the Russian gas processing industry and for the emerging gas industry in Eastern Russia. The Amur GPP means high technologies, significant investments and thousands of new jobs. It will give a powerful impetus to the socioeconomic development of the Amur Region and other Far Eastern provinces,” said Alexey Miller.

On May 21, 2014 Gazprom and CNPC signed the Purchase and Sale Agreement for the Russian gas supply via the eastern route (Power of Siberia gas pipeline). The 30-year contract provides for Russian gas supplies to China in the amount of 38 billion cubic meters a year. Gas supplies under the contract will commence between May 2019 and May 2021.

In July 2015 Gazprom Pererabotka Blagoveshchensk (customer for the Amur GPP construction and a part of Gazprom Group) and NIPIgazpererabotka (NIPIGAZ – part of SIBUR Group) agreed to form a partnership on designing, coordinating equipment and material supplies as well as managing the construction of the Amur GPP near the town of Svobodny in the Amur Region.

NIPIGAZ, acting as a contractor within the joint project, will draw up working documentation, supply equipment and materials, perform construction and installation activities at the Amur GPP and transfer the plant to Gazprom Pererabotka Blagoveshchensk in a state of full readiness. Phased commissioning of the GPP process trains will be brought into step with the development of Gazprom’s production capacities in Yakutia and the Irkutsk Region.

Up to 15 thousand people will be engaged in the Amur GPP construction during the busiest period and about 3 thousand jobs will be created at the plant.

Gazprom’s Amur GPP will be technologically connected with the deep hydrocarbon conversion plant, the project for which is being currently reviewed by SIBUR.

According to the Russian Government’s assignment dated September 15, 2015, Russia’s ministries and agencies were tasked to elaborate the matter of creating the area of accelerated socioeconomic growth in the Svobodnensky District in the Amur Region.

In September 2015 Gazprom and the Ministry for the Development of the Russian Far East signed the Agreement of Intent within the project for constructing the Amur GPP. The Agreement stipulates the Ministry’s support to Gazprom Pererabotka Blagoveshchensk in obtaining the residency in the newly-developed area of accelerated socioeconomic growth in the Svobodnensky District, the Amur Region.