Sibur sells LPG terminal in Ust-Luga, expects capacity increase by 30 pct.
MOSCOW, Nov 5 (Reuters) - Russian gas processing and petrochemicals company Sibur said it has sold a liquefied petroleum gas (LPG) and light oil products terminal in the Baltic port of Ust-Luga and expects the new owners to expand the terminal's capacity by 30 percent.
Sibur said it sold the terminal to an investment consortium for an undisclosed amount, which a company spokesperson said was roughly equal to the terminal's construction costs. Sibur previously said it cost about 20 billion rubles to build the facility.
The terminal's capacity is expected to rise to 5.2 million tonnes from 4 million, including 2.4 million tonnes of LPG, up from 1.5 million, and 2.8 million tonnes of light oil products, an increase from 2.5 million, Sibur said. It didn't provide a timeline for the expansion but industry sources said it would take no more than two years.
The company, which will remain the terminal's operator, estimates expansion costs at 1.3 billion rubles, a spokesperson told Reuters.
The investment consortium includes Gazprombank, Russian Direct Investment Fund (RDIF) and foreign investors. Russia's antitrust regulator gave a green light to UAE's Thirty Seventh Investment Company LLC and Singapore's Baltic Sea Transhipment Pte Ltd to buy the terminal in August. Sibur and RDIF confirmed the deal involved investors from the Middle East but did not give their names.
Thirty Seventh Investment Company is a subsidiary of sovereign fund Mubadala based in the United Arab Emirates. RDIF and Mubadala were negotiating with Russian warehouse operator PNK Group to buy two warehouses near Moscow, industry sources said in August. RDIF and Mubadala established a joint fund in 2013 for investments in Russia, which currently has $2 billion under management.
Mubadala Petroleum is discussing joint oil exploration projects in East Siberia with Rosneft.
Sibur began operations at the terminal in May-July 2013. The facility handled over 1 million tonnes of LPG and 1.86 million tonnes of light oil products in the first nine months of 2015.