Project Profile
Value: Undisclosed
Location: Nakhodka, Primorsky Krai, Russia
Oil refinery processing capacity: 240,000 bpd (stage 1) and 480,000 bpd (stage 2).
Petrochemical processing capacity: 3.4 million tpy of naphtha (stage 1) and 6.8 million tpy (stage 2).
Petrochemical production: 2 million tpy of olefin, 1.4 million tpy of ethylene and 0.6 million tpy of propylene
Start-up Year: 2020
The Far Eastern Petrochemical Complex Co. (FEPCO) aims to establish a major hub for production of petrochemicals and finished petroleum fuels in the Far East. It will be positioned near Nakhodka, giving it access to an ice-free port. By 2020, a 240,000 bpd oil refinery will be built under the project’s first stage of development. By 2022, a petrochemical complex will be constructed that will utilise 3.4 million tpy of hydrocarbon feedstock, predominately naphtha, from Rosneft\'s refineries at Achinsk and Komsomolsk. The cost of building these refining and petrochemical facilities has been estimated at 660 billion rubles (US$11.7 billion).
Rosneft signed a memorandum of understanding (MoU) with Japan’s Mitsui for joint development of the complex in 2013, but a binding investment pledge never materialised. In June 2016, Rosneft signed a heads of agreement (HoA) with ChemChina for co-operation on the FEPCO project. In September that year, they signed a framework agreement outlining their intent to form a joint venture to implement the project. Rosneft would hold a 60% stake in this joint venture, while ChemChina would have 40%.
The complex will require construction of a spur to connect it with the main ESPO pipeline system in order to operate effectively.
Operators:
Far East Petrochemical Company (FEPCO), 100% owned by Rosneft
Contractors:
Ineos Technologies: technology for the production of polypropylenes, high and low density polyethylene.