Construction of FEPCO infrastructure to be on list of monopoly investment programs
MOSCOW. July 22 (Interfax) - The construction of infrastructure for Rosneft's Far East Petrochemical Company (FEPCO) project should be included on the list of natural monopoly investment programs.
Such an instruction was given to the government after a session of the presidential commission on the fuel and energy sector at the beginning of June in Astrakhan, according to the minutes of the meeting, seen by Interfax.
In addition, measures necessary for the implementation of Rosneft's projects in the Far East should be included in the designated federal programs.
Other fuel and energy sector companies that are implementing or planning to implement projects in the region are expected to recommend presenting valid proposals for the consideration of the commission on the inclusion of measures necessary for the implementation of those projects on the list of federal directed programs.
The directives should be fulfilled no later than December 25, 2014.
The FEPCO project calls for building a petrochemicals plant close to Pad Yelizarova in the Partizansk district of Primorye. The plant would have overall capacity to process 30 million tonnes, including 24 million tonnes of oil and 6 million tonnes of naphtha.
The first phase would have capacity of up to 12 million tonnes per year, the second phase would see the launch of a petrochemicals unit with capacity for 3.4 million tonnes of product annually and the third phase calls for expanding oil refining by another 12 million tonnes per year and an additional 2.6 million tonnes of petrochemicals capacity per year.
The refining depth of the future complex could amount to 95%. The project is expected to take 15 years to carry out. This includes the construction of the new sea port's petrochemical facilities and the terminal for oil and oil products. Rosneft has suggested that the government support the project by constructing infrastructure: oil and gas pipelines, rail roads, power transmission lines and the port.
The cost of the first two phases of the FEPCO amounts to 659 billion rubles and with the third phase, 1.3 trillion rubles.
