Rosneft and Mitsui have signed an agreement to jointly develop the massive Far East Petrochemical Company (FEPCO) project, the companies said on Monday.
The deal was signed by Rosneft president Igor Sechin and by Shintaro Ambe, representative director of Mitsui & Co., in the presence of the Russian President Vladimir Putin and Prime Minister of Japan Shinzo Abe.
FEPCO, a subsidiary of Rosneft, is developing the project. Processing capacity of the petrochemical complex is planned at 3.4 million tpy of hydrocarbon feedstock, predominantly naphtha. The capacity of ethylene and propylene production unit is planned at 2 million tpy.
The complex is expected to be started up in 2017.
As part of the agreement, the parties said they plan to cooperate in engineering design in accordance with international best practices. Following the results of this cooperation, the final investment decision on FEPCO construction will be made.
We are glad to join efforts with one of the leading Japanese companies to develop the largest petrochemical complex in the Far East," said Sechin.
"Implementation of the project in cooperation with Mitsui will enable us to optimize the petrochemical complex and use the best global practices of constructing plants of similar scale. Successful implementation of the project will facilitate development of technology intensive production and establishment of a production cluster in the Far East.