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Sinopec and Russian Oil Signed Agreement to Conduct Prefeasibility Study on Eastern Siberian Natural Gas Processing and Petrochemical Complex Project Date:Sep 02,2016 Clicks:827

On September 2, at the Russian Far East Economic Forum, China Petroleum & Chemical Corporation (SINOPEC) and Rosneft (Russian Oil) signed a binding agreement to jointly develop the Russian East Siberian gas processing and Pre - feasibility study on petrochemical complex project. Sinopec chairman Wang Yupu and Russian oil chief Executive Mr. Igor Sechin(Igor Sechin) on behalf of the two sides respectively signed an agreement.

Following the Memorandum of Understanding (MOU) and the Framework Agreement, the two parties will establish a joint research team and employ a world famous engineering company as project management consultant to complete the comparison and selection of different processing routes. The main research contents include: site selection, process selection and program optimization. If all the research work specified in the agreement is successfully completed, the two sides will set up joint ventures to jointly carry out front-end engineering design (FEED) and future project construction as well as operation.

Mr. Wang Yupu said that the signing of the agreement would further close and deepen the integration of the two sides. The project would help to promote China's diversified adjustment of ethylene raw materials to further enhance Cthe influence of China Sinopec on domestic chemical market. At the same time, China's refining technology will also participate in the project process selection and formulation, which is another positive and useful attempt for China's refining technology to go out.

Mr. Igor Sechin said the signing of the agreement with Sinopec reflected the company's integrated approach.Rosneft had partnered with  Chinese partners to develop new industrial projects in East Siberia, including the development of new projects in East Siberia, the construction of high-tech processing enterprises in Russia, and the negotiation of sales conditions for petroleum and petrochemical products.

It is reported that the project aims to meet Chinese demand for polyethylene and polypropylene. The project has a processing capacity of about 5 billion cubic meters per year of natural gas, producing downstream polymers and petrochemical products, mainly for Russian and Chinese markets. The project feedstock is supplied by Russian oil-owned large oil and gas fields in eastern Siberia, Yurubcheno-Takhomsky. The project is initially located in Boguchan (Krasnoyarsk Krai).