Rosneft and Sinopec Signed a Framework Agreement
Rosneft and China Petrochemical Corporation (Sinopec Group) have signed a Framework Agreement on joint pre-feasibility study of the project related to the construction and operation of a gas processing and petrochemical complex in East Siberia.
The document was signed in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping by Rosneft CEO Igor Sechin and Chairman of Sinopec Group Wang Yupu.
The Agreement signed in furtherance of the Memorandum of Understanding on cooperation in petrochemical projects, provides to select a technology for natural gas processing from its components to polymers. The parties also decided to choose a consultant for the project management and identified competitive challenges and the time to fix them before entering the stage front-end engineering design (FEED). In the event of successful outcomes as stipulated by the Framework Agreement, it is supposed to create a joint venture between Rosneft and Sinopec in 2017.
The project will meet the growing demand for polyethylene and polypropylene in Russia and in China. It is assumed that the annual capacity of the new complex near the administrative center of Boguchany District will be 5 BCM of gas yielding up to 3 mln tons of polymers and petrochemical products primarily for sale on the Russian and Chinese markets. The resource base of the project comprises Rosneft oil and gas fields of Yurubcheno-Takhomsky cluster in East Siberia.
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