Russia and China to build world’s largest ethylene petrochemical plant

CHENGDU, Oct 16, 2019, RT, China Daily. An agreement worth more than $13 billion has been signed between China National Chemical Engineering Group (CNCEC) and Russia’s RusGasDobycha to build a natural gas processing and chemical plant. It is the largest ethylene integration project in the world, according to CNCEC chairman Dai Hegen. He told China Central Television the contract is the biggest ever signed by a Chinese enterprise, reported the Russia Today.

The new contract includes construction of a natural gas processing chemical plant in a small town near Russia’s shores at the Gulf of Finland. The plant will comprise two sets of ethylene cracking facilities with an annual capacity of 1.4 million tons. It will also have 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).

CNCEC said in a statement it would continue to tap the Russian market, promote cooperation for mutual benefits and win-win results.

Contract 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, China Daily added.

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.