Russia’s SIBUR begins supplying LPG to China

SIBUR signed a long-term contract with a Chinese customer for regular LPG supplies to the growing Chinese market, the company announced on Monday.

The product will be shipped by rail from the Nyagan GPP (gas processing plant), a subsidiary of SIBUR. Initial supply volumes will total around 20,000 tpy, with further increases possible.

SIBUR will be the first Russian company to supply LPG to China. When planning the transportation route, the company said 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, according to company officials.

LPG consumption in China is growing rapidly. According to IHS, it amounted to 27.6 million tons in 2013, up 9% year on year, with 3 million tons imported annually.