Rosneft and Sinopec Signed a Memorandum of Understanding on cooperation in gas and petroleum chemicals projects in East Siberia

The document was signed by Rosneft Chairman of the Management Board Igor Sechin and Sinopec Group Chairman Wang Yupu in the presence of the Prime-minister of the Russian Federation Dmitry Medvedev during his working visit to China and Premier of the State Council of the People's Republic of China Li Keqiang.

The agreement will boost the cooperation of Rosneft and Sinopec in the area of the development of the Yurubcheno-Tokhomskiy hydrocarbon cluster’s resource base. The document envisages a detailed pre-feasibility and concept design study with respect to a potential gas and petroleum chemicals joint venture. The scope of the envisaged venture may include a conversion of natural gas and its liquid fractions to ethylene and propylene with an integrated production of high-performance polymers and co-polymers.

The processing capacity of the integrated complex in Boguchany (Krasnoyarsk Territory) and Angarsk (Irkutsk region) is expected to be up to 10 bcm of natural gas per annum with an annual output of up to 3 million t of ethylene and around 6 million t of polymers and other petrochemicals totally. The project targets primarily Russian and Chinese markets.