Following a heads of agreement signed in June, ChemChina chairman, Ren Jianxin, and Rosneft’s CEO, Igor Sechin, have inked another contract, setting the framework for further implementing their planned Far Eastern Petrochemical (Fepco) joint venture. The document specifies the timetable for front-end engineering and design (FEED) and the start of preparations on the site’s infrastructure, outlines the project’s execution milestones and confirms on a broader basis the roadmap for Fepco’s delivery.

The project near Nakhoda in eastern Russia, will comprise crude oil refining facilities in the first phase, planned to start up by 2020. Phase two will see the addition of petrochemical plants, reportedly including ethylene, propylene, butadiene, benzene and linear alpha-olefins. Timing for the second phase has not been disclosed.

Sechin said Fepco marks a new level of energy-related partnership between Russia and China and will further strengthen the countries’ economic ties. The formation of the jv “will allow us to efficiently structure the development of one of the most promising petrochemical projects in the world with direct access to the Asian-Pacific market,” the Rosneft chief said. “Together with our Chinese partners, we will enable Fepco products to obtain significant marketing potential in a highly competitive region.”

Rosneft will hold 60% of the jv, with ChemChina taking 40%, but further negotiations will take place to define the venture’s financial and operational structure.