Mitsui, Rosneft develop petrochemical project in Japan

To cooperate in the engineering design of the petrochemical complex.

State-owned Russian oil company Rosneft has signed a memorandum of understanding with the Mitsui Group to jointly develop and build a petrochemical project in the Primorsk region near the Pervostroyiteley village in Nakhodka City District.

The Far East Petrochemical Company or FEPCO, a subsidiary of Rosneft, was established in 2011 to take charge of this project.

Nakhodka is a port city in Primorsky Krai, Russia situated on the Trudny Peninsula jutting into the Nakhodka Bay of the Sea of Japan, about 85 kilometers east of Vladivostok.

Under the MOU, both the companies will cooperate in the engineering design of the petrochemical complex in accordance with international practices. Rosneft's project is expected to manufacture polymers (polyethylene and polypropylene) and other petrochemical products.

The FEPCO project will be set up with a processing capacity of 3.4 million tons of hydrocarbon feedstock per year. The primary feedstock will be naphtha. The capacity of ethylene and propylene production unit is planned at 2MT per year.

Rosneft president and chairman Igor Sechin said the mplementation of the project in cooperation with Mitsui will enable Rosneft to optimize the petrochemical complex and use the best global practices of constructing plants of similar scale.