Baltic Chemical Complex LLC (RusGazDobycha’s wholly-owned subsidiary)

CIS PETROCHEMICALS

Baltic Chemical Complex LLC (RusGazDobycha’s wholly-owned subsidiary)

Baltic Chemical Complex LLC’s ethane cracking complex is an integrated project aimed to process ethane-containing gas from Gazprom fields. The complex to be located near settlement Ust-Luga, Kingisepp District, Leningrad Region, comprises a gas processing plant, a gas chemical complex, and transport infrastructure facilities.

Feedstock:

  • Ethane

Capacity:

  • 6 lines of polyethylene production with a capacity of 480 ktpa each
  • 2 lines of alpha-olefins production with a capacity of 137 ktpa each

Project engineering:

  • Peton - Pre-FEED of a gas processing plant for Gazprom and Rusgazdobycha / Engineering of an integrated complex
  • NIPIGAZ – FEED of gas processing facilities

Contractors:

  • Under the license agreement, Lummus Technology (McDermott) provides a technology license for olefin production and recovery. Under the license agreement, Baltic Chemical Complex LLC will buy licensing rights for ethylene production technology that is expected to yield a total amount (lines 1 and 2) of up to 3 mtpa (licensed capacity of 2.8 mtpa). The plants are planned to provide feedstock to produce polyethylene at the gas chemical complex.
  • Under the license agreement, Univation Technologies LLC (hereinafter Univation) provides the licensed polyethylene production technology, including ultra-modern polyethylene production technology UNIPOL ™ PE. A separate agreement involves the supply of patented standard and advanced catalyst systems for the production of high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and metallocene LLDPE.

EPC:

  • China National Chemical Engineering Group Corporation Ltd. signed an agreement for the first stage of the production complex EPC (engineering and construction). This agreement provides for all the stages of engineering and site preparation for all the capacities, production facilities, and auxiliary facilities of the Ust-Luga Gas Chemical Complex, including pyrolysis and polymerization units, as well as OSBL, TSF, and logistics facilities. The EPC agreement totals 12 bln euros.

Funding:

VEB.RF and the Baltic Chemical Complex (100% subsidiary of RusGazDobycha) signed a loan agreement on the allocation of up to 111 billion rubles for the gas chemical complex construction in Ust-Lug.

Timeline:

  • Investment decisions are made at all stages of construction;
  • FEED starts in spring 2020;
  • Construction permits are expected to be obtained in June-August 2020;
  • Operation:
  • Construction stage 1 – Q3 2023;
  • Construction stage 2 – Q3 2024.

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