China, Russia Sign Largest Petrochemical Contract

China National Chemical Engineering Group Corporation Ltd (CNCEC) and RusGasDobycha signed a FEED+EPC contract on the Russian Baltic Sea chemical complex project, valued at about 12 billion euros ($13.25 billion) in Chengdu, Southwest China's Sichuan Province on Oct 11.

The project is the world's biggest ethylene integration project and the most-valuable single contract in the global petrochemical field. It is the most lucrative overseas contract ever signed by a Chinese enterprise.

Its signing confirms that CNCEC is accelerating its development in Russia and deepens practical cooperation between the two countries.

It also promotes China-Russia comprehensive strategic partnership for coordination in a new era, benefits the peoples of both countries and contributes to an open world economy.

The project is contracted by China National Chemical Engineering No. 7 Construction Co., Ltd. (CC-7), a subsidiary of CNCEC.

The affiliated company has more than 10 years of engineering experience in Russia and has sound cooperation with several large-scale oil and gas companies like Rosneft Oil, Gazprom, LUKOIL and SIBUR.

As one of the large-scale natural gas liquefaction and processing programs developed by Gazprom and RusGasDobycha in Ust-Luga, the project is independently invested by RusGasDobycha.

It is intended to function as a joint petrochemical facility which has the most advanced technology and can produce 2.8 million tons of ethylene and 2.28 million tons of polyethylene as well as other products per year.

The facility will be the most important part of its sponsor's full industrial chain, relying on its large scale and depth of processing. It will greatly promote local economic and social development and contribute to people's quality of life.

During construction, the Chinese side will provide more than 6,000 jobs by recruiting local staff members and also offer technical training.

When the project is completed, over 3,000 stable job positions will be kept which will greatly improve regional economic growth and livelihood.

Since the Belt and Road Initiative was proposed in 2013, CNCEC has grasped the opportunity to develop its globalization roadmap.

To date, the company has more than 320 projects under construction overseas, worth over $58 billion. The projects cover more than 60 countries and regions such as Russia, Indonesia, Malaysia, United Arab Emirates, Saudi Arabia, Pakistan, Kazakhstan, Turkey and Egypt.

Among the projects, over 220 are in countries participating in the initiative with contracts totaling nearly $45 billion, driving exports of China-made mechanical and electrical products worth $21.5 billion.

Dai Hegen, chairman of China National Chemical Engineering Group Corporation Ltd (CNCEC) and RusGasDobycha's CEO Konstantin Makhov, on behalf of the two companies, sign a contract on the Russian Baltic Sea chemical complex project valued at about 12 billion euros ($13.25 billion) in Chengdu, Southwest China's Sichuan Province on Oct 11. [Photo/sasac.gov.cn]

(Executive editor: Wang Ruoting)