Inta Gas Refinery

Inta Gas Refinery (IGPZ) is designed to refine natural gas into hi-tech chemical products.
The natural gas will be supplied by another Synttech subsidiary, Timan-Pechora Gas Company. One of the products is carbon black of various grades, including high-purity product. This material is widely used in a number of rapidly developing industries, from the tire industry to production of coloring products. There are plans to launch the production of other chemical products.

Synttech is interested in investing in to-date chemical operations. The introduction of the most state-of-the-art German, Japanese and American technologies provide for the production of high value-added chemical products. The key input resource is natural gas. Synttech´s subsidiary, Timan-Pechora Gas Company, holds significant reserves of natural gas to backup the feasibility of construction of such chemical facility in Russia.

The presence of a gas refinery in Synttech´s pipeline of investment projects lowers the Company´s dependence on the situation in the natural gas market, as well as enhances the efficiency of all investment projects through integration and consolidation of the production infrastructure and expansion of export opportunities.

The location for the construction of the refinery (Inta, Komi Republic, European Russia) has been selected because of its proximity to natural gas reserves of Timan-Pechora Gas Company, Synttech´s subsidiary. These gas fields are located in the direct proximity of Inta. The construction of an on-site refinery reduces the cost of gas transportation, eliminates investments in the gas pipeline construction and provides for joint operation of relevant infrastructure.

The transport component in the end price of a finished product for domestic transportation purposes is usually below 5%, therefore, the geographic proximity to resources is the key factor.

Currently, Synttech and OOO SeverNIPIgaz are underway working on the feasibility analysis of the project and shaping the schedule of the project. The expectation is that the refinery will be commissioned in 2010.