Earlier, the parties signed a Memorandum of Understanding regarding probable acquisition of controlling stake in FEPCO by ChemChina.
Once phase one is complete, the facility is scheduled to refine 12 mmt a year and produce 8.5 mmt of engine fuels. The second phase is expected to boost the annual output by 3.4 mmt and secure the release of 3 mmt of petrochemical products.
The project also envisages the creation of a thermal power plant, which may then be contributing to the power grid of Primorye Territory, Russia, and the thermal grid of the urban district of Nakhodka.
Preliminary investment amount, necessary for implementation of phases one and two is estimated approximately at RUB660 bln, VAT included. This should also cover infrastructure costs.
Should the market environment allow it, the facility’s output may be increased in the future.
The oil refining hub will produce motor gasoline, kerosene, diesel and bunker fuel, etc. Phase two will allow for the production of 15+ polyethylene and polypropylene brands that are of a multi-zone of applications and in demand across the promising APR markets.
The hub will allow creating a powerful petrochemical cluster in Primorye Territory, which should give impulse to domestic production and create new jobs, while also resulting in exportation of domestically produced high added value end products.
Commenting on the meeting results, Igor Sechin stated, “The Company is interested in attracting a strategic partner to the project. We estimate our partnership with the Chinese partners regarding ongoing joint projects positively. We expect further development of this mutually beneficial cooperation with ChemChina.”
28 Ноября 2024 | четверг | 18:44
