Sinopec LPEC successfully handed refinery project over to PetroChina

MOSCOW (MRC) -- Sinopec's Luoyang Petrochemical Engineering Corp. (LPEC) subsidiary has announced the successful hand-over to PetroChina Yunnan Co. of a 13-million-t/y refinery project built for PetroChina Yunnan in Anning, Yunnan, China, as per Apic-online.

"As the important supporting project for the long-distance Sino-Burma gas pipeline project, the implementation of this project will contribute greatly to the safe energy supply to China," LPEC noted.

As MRC reported earlier, in May 2015, W. R. Grace & Co. announced that it would provide its UNIPOL PP technology and services to Yunnan Yuntianhua PetroChemical Co., Ltd. for a new PP production facility in Anning Yunnan, China. With an expected opening in 2017, the new enterprise plans to purchase propylene from the PetroChina Yuannan refinery and build a unit that will produce polypropylene at a rate of150 kta, or kilotons per year.

LPEC is the engineering contractor of all process units and auxiliary facilities and the main engineering, procurement and construction contractor for the major units of Sinopec's refinery project.

Rosneft and Sinopec sign agreement on participation in East Siberian petrochemical complex construction project

MOSCOW (MRC) -- Rosneft and China Petrochemical Corporation (Sinopec Group) signed within the the Eastern Economic Forum a binding Agreement on a joint preliminary study of the project for construction and operation of a gas processing and petrochemical complex in East Siberia, said Rosneft on its site.

The document was signed by Rosneft Chief Executive Officer Igor Sechin and China Petrochemical Corporation (Sinopec Group) Chairman Wang Yupu.

The document signed further to the Memorandum of Understanding and the Framework Agreement, envisages activities to analyze and select a technology to produce high-tech polymers from raw natural gas and its components. The Parties intend to form a joint Project Team to review various applications of state-of-the-art gas processing technologies and to select a project management consultant among global engineering companies. Furthermore, at this stage it is planned to select a site in the vicinity of the Boguchany administrative center (Krasnoyarsk region) to locate the Complex, identify the project configuration and to approve optimal process solutions. In case of a successful completion of the Agreement activities, Rosneft and Sinopec will set up a joint venture to conduct FEED study, construct and operate the Complex.

Implementation of the project will make it possible to supply the growing market for polyethylene and polypropylene in Russia and China. The annual throughput of the Complex Train 1 is expected at 5 bcm of natural gas with the yield of up to 3 Mt of high-tech polymers and petrochemical products for sales primarily on Russian and Chinese markets. The project resource base comprises Rosneft oil and gas fields of the Yurubcheno-Takhomsky cluster in East Siberia.

Commenting on the Agreement signed, Rosneft CEO Igor Sechin said: "The Agreement with Sinopec is a bold example of Company's integral approach. We work with our Chinese partners throughout the entire production chain: we engage them to develop and finance our most promising Greenfield assets in East Siberia, set up high-tech feed processing joint ventures in the RF and agree upon conditions for monetizing gas products and petrochemicals".

After the signing ceremony Wang Yupu said: "The signing of this Agreement will further strengthen and develop the multidimensional cooperation between the parties. This project will allow China to diversify the supplies of petrochemical feedstock, and boost Sinopec’s domestic petrochemical products’ market share. Equally the potential involvement in the project of Chinese petrochemical equipment producers will allow them to expand the geography reach and boost the position in the global arena".

As MRC informed previously, in late June 2016, Sinopec Group signed a framework agreement on joint pre-feasibility study of the project related to the construction and operation of a gas processing and petrochemical complex in East Siberia. The document was signed in the presence of Russian President Vladimir Putin and Chinese President Xi Jinping by Rosneft CEO Igor Sechin and Chairman of Sinopec Group Wang Yupu.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.

China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.

Rosneft and ChemChina develop cooperation

MOSCOW (MRC) -- Rosneft and China National Chemical Corporation (ChemChina) signed a Heads of Agreement on cooperation in equity investment in ChemChina Petrochemical Corporation (CCPC) and a Memorandum of Understanding for cooperation on the project of the Far-East Petrochemical Company (FEPCO), as per Rosneft's press release.

The documents were signed by the Chairman of Rosneft Management Board Igor Sechin and the Chairman of ChemChina Ren Jianxin during the visit of the Russian President Vladimir Putin to Beijing and in presence of the President of People's Republic of China Xi Jinping.

The CCPC Heads of Agreement concerns Rosneft’s planned subscription for a 30% stake in CCPC and follows the signing of a memorandum in June 2015 at the St. Petersburg International Economic Forum. The document signed in Beijing outlines the preliminarily agreed price, the transaction structure and the corporate governance issues.

The FEPCO Memorandum concerns ChemChina's proposed acquisition of a majority stake in FEPCO project as well as the key stages of such investment. By signing the memorandum, Rosneft involves a strategic partner for FEPCO project and makes a major step towards its development.

The transactions contemplated by the CCPC Heads of Agreement and the FEPCO Memorandum are subject to due diligence and the relevant corporate and regulatory approvals.

Also, Rosneft and ChemChina signed a memorandum agreeing to supply to CCPC ESPO, Sokol, alternative crudes and other feedstocks as mutually agreed by the parties . According to the document, the parties will hold negotiations on signing a long-term contract for 4 million tons delivered within three years with an option to extend supplies and increase the contract duration. Delivery of the signed documents will enable Rosneft to significantly enhance its positions on the Asia-Pacific region energy market and China in particular. Cooperation with ChemChina will enable Rosneft to obtain a brand new opportunity to produce and market its products in each segment of the value chain through to the end consumer.

Commenting on the agreement signed, Igor Sechin said: "The achieved agreements are indicative of a special level of cooperation with our Chinese partners. Joining efforts will further improve efficiency of our work by developing cooperation in all areas including such strategically important projects as FEPCO."

As MRC wrote before, in late June 2016, Rosneft CEO Igor Sechin and China National Chemical Corporation Chairman Ren Jianxin signed Heads of Agreement for cooperation in respect of Far Eastern Petrochemical Company (FEPCO) project. The agreement provides for the entry of ChemChina into the FEPCO equity capital with a stake of 40% and for the proportional financing. The parties intend to conduct joint analysis aimed at the specification of niche markets for FEPCO products based on the capabilities of the partner that enjoys a robust position in the Asia-Pacific markets.

ChemChina is one of the largest chemical companies in the world. The company's business is focused on the production of new and special chemical materials, basic chemicals, oil refining, agricultural chemistry, rubber products, and chemical equipment.

ChemChina Petrochemical Co. Ltd is a subsidiary of ChemChina, and engaged in the production of petrochemical products; the installed capacity of hydroskimming is 25 million tons of crude oil per year.

Rosneft became Russia's largest publicly traded oil company in March 2013 after the USD55 billion takeover of TNK-BP, which was Russia’s third-largest oil producer at the time.

LG Chem restarted Yeosu naphtha cracker after shutdown

MOSCOW (MRC) -- South Korea's largest chemical company, LG Chem, resumed operations at its Yeosu naphtha cracker on Thursday, 1 September, after a brief shutdown on Wednesday, a company spokesman said, reported Reuters.

The cracker shut "due to a minor problem", the spokesman said, without elaborating.

The facility can process 1.16 million tonnes per year (tpy) of naphtha into petrochemicals.

LG Chem also operates a 1.04 million tpy naphtha cracker located in Daesan.

As MRC informed before, in January 2016, LG Chem completed the acquisition of Dongbu Farm Hannong, the country’s largest agricultural products provider. Following a series of negotiations since September 2015, LG Chem had finally acquired 100% equity stake in Dongbu Farm Hannong’s shares worth USD426.49 million (KRW 515.20 billion).

LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.

Small fire extinguished at SK Incheon Petrochem waste water facility

MOSCOW (MRC) -- SK Incheon Petrochem, owned by SK Innovation Co Ltd, extinguished a small fire in its waste water facility early on 2 September, as per a company spokeswoman reported by Reuters.

"The fire was reported earlier on Friday but it was put out immediately, so there were no injuries due to the incident and no impact on operations," said SK Innovation spokeswoman Kim Wookyung.

SK Incheon Petrochem Co., Ltd. produces and sells petrochemical products. Its products include gasoline, kerosene, jet fuel, diesel, liquefied petroleum gas, asphalt, aromatics, and solvents. The company was founded in 1969 and is based in Incheon, South Korea.