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Largest petrochemical contract signed between China and Russia

By Yu Xiaoming | chinadaily.com.cn | Updated: 2019-10-14 13:13
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China National Chemical Engineering Group Corporation signed an agreement worth around 12 billion euros ($13.25 billion) with Russia's RusGasDobycha on Oct 11, 2019. [Photo/cncec.cn]

China National Chemical Engineering Group Corporation has signed an agreement worth around 12 billion euros ($13.25 billion) with Russia's RusGasDobycha in Chengdu, Southwest China's Sichuan province.

This project is the biggest ethylene integration project in the world, the biggest single contract in the global petrochemical field, as well as the biggest contract signed by Chinese enterprises so far, Dai Hegen, chairman of China National Chemical Engineering Group said when interviewed by China Central Television.

The contract includes construction of a natural gas processing chemical plant, which include two sets of ethylene cracking facilities with an annual capacity of 1.4 million tons; six sets of polyethylene facilities with an annual capacity of 480,000 tons; two sets of LAO facilities with an annual capacity of 137,000 tons; and an outside battery limiter (OSBL).

It is signed by China National Chemical Engineering No 7 Construction Co Ltd and Baltic Chemical Complex LLC, a wholly-owned subsidiary of RusGazDobycha, whose business covers the complete industry chain of natural gas, such as extraction, transportation and downstream processing.

The project is divided into three phases: infrastructure extension, early stage engineering, and project implementation. The contract period is 60 months.

Since the Belt and Road Initiative was introduced in 2013, China National Chemical Engineering Group has grasped opportunities to develop its globalization roadmap. The company currently has more than 320 projects under construction overseas, worth more than $58 billion.

These projects cover more than 60 countries and regions such as Russia, Indonesia, Malaysia, United Arab Emirates, Saudi Arabia, Pakistan, Turkey and Egypt, the company said on its website.

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