China and Russia sign the world's largest ethylene integration project general contract
China Chemical Engineering Group Co., Ltd. (China Chemical) and Ross Gas Production Co., Ltd. signed a contract for the Russian Baltic Chemical Complex project FEED (front-end engineering design) + EPC (Engineering General Contracting) contract in Chengdu with a contract value of approximately 12 billion euros. According to China Chemicals, the Russian Baltic Chemical Complex project is the world's largest ethylene integration project. It is currently the largest single-contract project in the global petrochemical sector and the largest contract for Chinese companies to “go global”.
In recent years, Russia, one of the world's largest natural gas exporters, has placed increasing emphasis on natural gas chemical projects with a view to increasing processing depth and producing high value-added products. The above project is part of the ethane-containing gas treatment and LNG production complex in the Usteluga region of Leningrad Oblast, Russia, and is jointly implemented by Gazprom (Russian Gas Company) and Ross Gas Production Company. The raw materials for the project come from natural gas containing ethane produced by the Russian gas company in the Achimov and Valanin gas fields in the Nadine-Pul-Tazaf region. According to the forecast of the Russian gas company, the complex will process 45 billion cubic meters of natural gas per year, produce 13 million tons of LNG, 3.8 million tons of ethane products and 2.4 million tons of LPG. The surplus natural gas (about 19 billion cubic meters) will enter the Russian gas company. Natural gas pipeline network system. According to the Russian gas company, the production of LNG and ethane in the same plant significantly improves project efficiency and economy, and can significantly reduce resource and price risks.
The construction of the Baltic Chemical Complex is under the responsibility of Ross Gas Production Company, which mainly includes ethane cracking to produce ethylene plants and polyethylene plants, with an annual output of 2.8 million tons of ethylene and 2.88 million tons of polyethylene. According to the contract, the implementer - China Chemical Engineering No. 7 Construction Co., Ltd. needs to construct two sets of ethylene cracking units with an annual output of 1.4 million tons, six sets of polyethylene units with an annual output of 480,000 tons, and two columns with an annual output of 137,000. Tons of alpha olefin plant and site facilities, project operation time is 60 months.
According to the website of the Russian gas company, the ethane-containing gas treatment and LNG production complex project in the Usteruga region of Leningrad Province is a new economic model that converts oil and gas reserves into economic benefits, which is of great significance to the development of the regional economy. The construction of the complex will increase Russia's LNG and LPG export levels, greatly increase the production capacity of ethane as an industrial raw material, and create 5,000 long-term jobs. The operator of the project is a company named “Ross Chemical Alliance” established by the Russian gas company and Ross Gas Production Company on a reciprocal basis (50:50). According to the plan, the first production line will be put into operation in the second half of 2023. The second line will be put into production before the end of 2024.