Foreign, Russian investors to spend $700 mln on Ust-Luga terminal

ST. PETERSBURG, May 22 (Itar-Tass) -- The Russian Direct Investment Fund (RDIF), Gazprombank, and a group of foreign investors have agreed to provide over U.S. $700 million to develop a terminal of petrochemical company Sibur in the port of Ust-Luga in the Leningrad Region, the RDIF said in a statement Thursday. The investments will allow advancing operations of the terminal and expand its handling capacity, which now amounts to around 1.5 million tonnes of liquefied petroleum gas (LPG) and 2.5 million tonnes of light oil products. The terminal will be run by a joint venture between Sibur and the consortium. Sibur will have the exclusive right to use 100% of the terminal’s capacity to transship LPG under earlier agreed conditions. The consortium plans to sign an investment agreement during the St. Petersburg International Economic Forum, taking place from Thursday through Saturday.