UPDATE: Sibur, Sinopec ink shareholder deal on Amur gas complex JV

(Adds comments in last two paragraphs)

MOSCOW, Jun 29 (PRIME) -- Russian petrochemical holding Sibur and China’s Sinopec have signed a shareholder agreement to create a joint venture for the Amur gas chemical complex project and are working to get regulatory approvals, according to Sibur’s documents seen by PRIME on Monday.

“In June 2020, Sibur and Sinopec signed a shareholder agreement on the Amur gas chemical complex and are working on receiving regulatory permissions,” the document said.

Sibur said in May that Sinopec already received all necessary corporate approvals for the creation of the joint venture with Sibur. Sibur said earlier that Sinopec is expected to have a 40% stake in the joint venture.

Sibur preliminarily estimates investments in the creation of the Amur gas chemical complex at U.S. $10.7 billion.

Sibur and Sinopec are studying the issue of attracting project financing for the Amur complex and may consider entering the borrowing market at the end of 2020 or in early 2021, a top executive of Sibur said during a conference call.

“We are considering attracting external financing for the implementation of the project, we are studying the most suitable structure, but it should not differ much from the classic 70% to 30%,” the executive said.

End