ChemChina (Beijing) and oil company Rosneft (Moscow, Russia) have signed a non-binding agreement setting out the framework for implementation of the companies’ previously announced Far-Eastern Petrochemical Co. (FEPCO) project, located near the city of Nakhodka in far eastern Russia.
The agreement was signed by ChemChina president Ren Jianxin and Rosneft CEO Igor Sechin on 4 September during the G20 summit in Hangzhou, China. It confirms the intention of each party to develop FEPCO and create a joint venture (JV) for its implementation. Rosneft will hold a 60% stake in the JV and ChemChina will hold the remaining 40%. It also specifies the schedule of performing the front-end engineering and design, infrastructure development, and the key tasks of implementing the project.
“The creation of the JV will allow us to efficiently build the development structure of one of the most promising petrochemical projects of the world that has direct access to the market of the Asia/Pacific region,” Sechin was quoted by Russian media as saying.
ChemChina and Rosneft signed a memorandum of understanding for the FEPCO project in September 2015. In June 2016, the parties signed a heads of agreement for a joint feasibility study.
The FEPCO project would be one of the largest industrial complexes in Russia. Phase 1 of the project, scheduled for completion in 2020, comprises a 12-million metric tons/year refinery. Phase 2, to be completed in 2022, will have a petrochemical plant that includes a naphtha cracker capable of producing 1.4 million metric tons/year of ethylene and 600,000 metric tons/year of propylene, according to Rosneft. Downstream production will include 850,000 metric tons/year of polyethylene; 800,000 metric tons/year of polypropylene; 200,000 metric tons/year of butadiene; 230,000 metric tons/year of benzene; and 700,000 metric tons/year of ethylene glycol.
By Sok Peng Chua
Source: Chemical Week
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?