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Rosneft and Mitsui to develop Russia FEPCO petrochemical project

Rosneft and Mitsui signed MOU for Nakhodka complex

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolDuring the visit of Prime Minister of Japan Shinzo Abe to Russian President Vladimir Putin on April 29th, 2013, the Russian oil and gas and petrochemical giant OJSC NK ROSNEFT (Rosneft) and the Japanese conglomerate Mitsui & Co., Ltd (Mitsui) inked a memorandum of understanding (MOU) to develop jointly the FEPCO petrochemical complex at Dakhodka in the Russia far east.

In 2011, Rosneft established a wholly-owned subsidiary called ZAO Vostochnaya Neftechemicheskaya (VNHK) to develop a petrochemical complex at Pervostroiteley, in the urban district of Nakhodka, close to Vladivostock in the Primorsky region of the Russian far east.

Rosneft-Mitsui_Russia_Nakhodka_Petrochemical_Complex_MapSince then VNHK has been renamed the Far East Petrochemical Company (FEPCO).

The purpose of the FEPCO project is to develop a petrochemical complex to cover the needs of Russia and neighboring countries in the far east for polymers and a large scope of hydrocarbon derivatives.

The location close to Nakhodka has been selected as it will benefit from its own sea terminal giving access to an ice-free port.

To be developed in phases, the FEPCO petrochemical complex should be fed by naphtha supplied from Rosneft refineries located in Achinsk and Komsomolsk.

In addition some petrochemical building blocks should be provided by the Angarsk Petrochemical company currently under expansion in the East Siberia.

This Angarsk Petrochemical complex has been developed in the same time as the upgrading of the Angarsk Refinery in order to increase its flexibility in the balance of deliveries between transportation fuels and naphtha for the petrochemical applications.

Rosneft_Mitsui_FEPCO_Petrochemical_Project_mapIn a first phase, the Rosneft and Mitsui Nakhodka project should be designed to treat 3.4 million tonnes per year (t/y) naphtha.

With this capacity, the FEPCO petrochemical complex will rank among the world-scale projects with the some production units to be listed in the top largest ones globally.

From the naphtha cracker, Rosneft and Mitsui are planning to produce 2 million t/y olefins with:

 – 1.4 million t/y of ethylene

 – 0.6 million t/y of propylene

Through this memorandum of understanding, Rosneft intends to benefit from Mitsui expertise in developing such large scale petrochemical complex to:

 – Optimize the processes

 – Integrate most advanced technologies

 – Manage such large scale and complex project

 – Implement the current best practices to build and operate such facilities

Ineos to provide Rosneft FEPCO with Innoven licenses

In this context, Rosneft selected already in 2012 the Ineos Technologies for the production of the polyolefins to come downstream the ethylene and propylene.

Ineos Technologies had previously been awarded the licenses for the Angarsk petrochemical complex.

NAKHODKARegarding FEPCO Rosneft bought Ineos Technologies licenses for the production of:

 – Polypropylene based on gas phase technology Innovene PP

 – Mono and bimodal High density polyethylene (HDPE) with the slurry technology Innovene S

 – Linear low density polyethylene and HDPE through the swing gas phase technology Innovene G

 After signing this memorandum of understanding, Rosneft and Mitsui will proceed to the evaluation and selection of the licenses for the remaining processes of the complex.

Through this technological cooperation with the most knowledgeable companies in the world such as Ineos and Mitsui, Rosneft is expecting to deploy its petrochemical branch downstream into the high added value polymers.

In that perspective Rosneft and Mitsui expect the FEPCO petrochemical complex to come on stream in Nakhodka in 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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