Russia clears Sinopec's participation in petrochem project

21 Dec '20

2 min read

Pic: Sinopec

The Russian government has approved participation of the China Petroleum & Chemical Corporation (Sinopec) in a large-scale petrochemical project, it announced recently. Private Russian petrochemical company SIBUR wants to build huge polymer-producing plants in the country's far east Amur region, targeting the Chinese and other Asian markets.

The Amur Gas Chemical Complex, with investments of up to $11 billion, is set to start producing 2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene per year starting 2024-2025.

The Amur Gas Processing Plant (GPP) near the town of Svobodny in the Amur region will become one of the largest gas processing facilities in the world. It will serve as an essential link in the process chain of natural gas supplies to China via the Power of Siberia gas pipeline.

The plant will receive multi-component gas from the Yakutia and Irkutsk gas production centers, which are being established by Gazprom within the Eastern Gas Program. The processed gas will be delivered to China. Gazprom is a Russian partially state-owned multinational energy corporation headquartered in the Lakhta Centre in Saint Petersburg.

Sinopec is set to take a 40 per cent stake in the complex. SIBUR has said it could turn to Russia's National Wealth Fund to help finance the project, according to a global newswire.

Chinese companies have been actively participating in Russian projects in recent times.

Fibre2Fashion News Desk (DS)

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