Communicator

AMUR GCC Project showing the 9 Linde Pyrolysis Furnaces and the Quench Tower | AGCC website

Amur Gas Chemical Complex: Navigating Technology Licensing Challenges

The Amur Gas Chemical Complex (Amur GCC) exemplifies the intricate balance between technological ambition and geopolitical realities. Originally designed to become the world’s largest polymer production site, the project has faced significant delays due to shifts in technology licensing dynamics, even as its core infrastructure advances.

The Amur GCC Project

Amur GCC stands as one of the most ambitious petrochemical undertakings in Russia’s recent history and a flagship of Russian-Chinese industrial cooperation. Located near Svobodny in the Amur region of Russia’s Far East, the project is a joint venture between SIBUR, Russia’s largest petrochemical company, holding a 60% stake, and China’s Sinopec, which owns the remaining 40%. When completed, Amur GCC will be among the world’s largest producers of base polymers, with a design capacity of 2.7 million tonnes per year—2.3 million tonnes of polyethylene and 400,000 tonnes of polypropylene.

The complex is integrated with the broader Amur gas processing and gas chemical cluster, ensuring direct feedstock supply via pipelines. Gazprom’s Amur Gas Processing Plant (Amur GPP), which processes natural gas from East Siberian fields, will supply the primary feedstock to Amur GCC: ethane (up to 2 million t/y), and LPG (propane/butane, ~1.1 million t/y).

Steam Cracker and Downstream Progress

At the heart of the complex lies its 2.3 million t/y ethylene plant, supplied and partially engineered by Linde before the German firm’s confirmed withdrawal in 2022. Linde’s contributions included delivering critical components like the 1,500-ton quench tower, transported from South Korea to the remote Amur site—a logistical triumph showcased in earlier project updates.



Quench tower delivery to AMUR GCC, Nov 2021 | Credit: Linde Engineering 

By January 2024, SIBUR released a progress video on AGCC status update as of December 2023, confirming that polyethylene (PE) and polypropylene (PP) production units were being deployed as originally planned. The footage shows equipment installation for these downstream facilities, suggesting that proprietary technologies from Western licensors—Univation (Unipol PE gas-phase plants), ChevronPhillips Chemical (PE slurry process, undefined if MarTECH Single Loop or Advanced Dual Loop), and LyondellBasell (Spheripol PP Technology)—remain integral to the project. This indicates that either licensing agreements persisted post-2022 or SIBUR/Sinopec retained rights to use the technologies despite licensors’ reduced involvement.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is a Slurry Loop Reactor | Credit: Sibur

Licensing Uncertainties and Delays

While Linde publicly exited the project by July 2022, when part of the equipment, including the pyrolysis unit, had already been built, SIBUR and Sinopec decided to reconsider the strategy for implementing the project, redesigned it and replaced contractors and license holders for the polyethylene and polypropylene lines. To this date, the status of other Western partners remains ambiguous as public disclosures from SIBUR and Sinopec have not clarified whether CPChem, Univation, or LyondellBasell continue to provide technical support or if their pre-sanction contracts are being honored. The lack of explicit withdrawal announcements contrasts with the project’s two-year delay.



Amur GCC Progress Video, Jan 2024. Reactor in this screenshot is likely a Gas Phase Unipol PE reactor | Credit: Sibur

It is a matter of speculation if SIBUR and Sinopec may be relying on existing licenses, in-house expertise, or third-party intermediaries to proceed with the original technologies. The January 2024 video underscores that downstream unit construction aligns with initial designs, implying that the licensors’ intellectual property is still being utilized, albeit without confirmed active collaboration.

Construction began in August 2020 and mechanical completion has been delayed to 2026 (originally 2024–25). Despite licensing headwinds, the Amur GCC achieved 76% mechanical completion by mid-May 2025 with commercial polyethylene production to start by Q3 2026, polypropylene production and full operations expected to follow in 2027 (source: interfax.com).

Strategic Implications

The Amur GCC’s trajectory highlights the resilience of large-scale petrochemical projects in the face of geopolitical disruptions. While Linde’s exit created logistical and technical gaps, the continued use of Western-designed downstream technologies—whether through preserved licenses or workarounds—demonstrates SIBUR and Sinopec’s commitment to delivering a world-class facility. The complex’s success will hinge on operationalizing these units without direct licensor support, a challenge that could redefine global norms for technology transfer in sanctioned environments. For now, the Amur GCC stands as a testament to both international collaboration’s potential and its fragility in an era of shifting alliances.

#linde  #univation  #lyondellbasell  #chevronphillips  #cpchem  #sibur  #amurgcc  #sinopec 
#steamcracker  #ethyleneplant  #amur  #russia  #unipolpe  #martech  #slurryloop  #gasphasepe  #spheripol  #polyethylene  #polypropylene  #ethane  #lpg 

New Delhi – India's Oil and Natural Gas Corporation (ONGC) is actively seeking strategic partners to ensure a stable supply of ethane feedstock for its ONGC Petro additions Ltd (OPaL) petrochemical complex in Dahej, Gujarat.

ONGC has issued an expression of interest (EOI) to collaborate with companies experienced in the operation and management of very large ethane carriers (VLECs), very large gas carriers, and liquefied natural gas carriers. This initiative aims to secure the necessary infrastructure for transporting 800,000 tonnes per year of ethane, which OPaL requires from May 2028 onwards.

OPaL operates a dual-feed cracker capable of producing 1.1 million tonnes per year of ethylene and 400,000 tonnes per year of propylene. The facility relies on a mix of naphtha and C2, C3, and C4 feedstock.

ONGC's plan involves establishing a joint venture company that will handle funding and the construction of VLECs. ONGC will then charter these vessels to transport its ethane requirements.

Interested parties have until March 27th to submit their proposals.

#opal  #ongc  #india  #vlec  #steamcracker  #ethane  #lpg 

A detailed description of the TC2C crude oil to chemical conversion process has been added.


#lummus  #aramco  #clg  #chevronlummusglobal  #crudeoiltochemicals  #oiltochemicals  #refineryintegration  #steamcracking  #lpg  #naphtha  #olefins  #aromatics  #ctc  #cotc  #coc  #tc2c  #c2c 

SINOPEC liquid cracker added to Gulei Ethylene Complex Phase II Project in Fujian.
 

#sinopec  #stteamcracker  #naptha  #lpg  #ethylene  #china  #fujian 

On Oct 1st, 2024, Technip Energies announced that the Long Son Petrochemicals Co., Ltd. (LSP) olefins plant in Long Son Island, Ba Ria-Vung Tau province,  Vietnam, passed its final performance acceptance test.

Technip Energies provided licensing, engineering, procurement, construction, commissioning, start-up and initial operation for the 1,350,000 tonnes/year cracker. As Vietnam’s first olefins plant, the flexible feed cracker, can utilize both naphtha and liquified petroleum gas (LPG) feeds to produce ethylene, propylene, and butadiene.

The plant successfully started up end 2023 to reach its full capacity shortly after the start-up and pass its first performance test in February 2024. The plant, which broke ground end 2018, includes Technip Energies’ licensed ethylene technology, including Ultra Selective Conversion (USC®) furnaces preferred for high selectivity and low cost, and the Heat-Integrated Rectifier System®, preferred for energy efficient ethylene recovery.

However, Listed Siam Cement Group (SCG), Thailand's largest cement maker and industrial conglomerate, has suspended operations at its Long Son Petrochemicals (LSP) complex in order to cope with high production costs and the impact of a downturn in the global petrochemical market.

The suspension, slated to last for at least six months, began in mid-October, only roughly two weeks after LSP commenced commercial operations on Sept 30, with a production capacity of 74,000 tonnes.

A resumption of operations will mainly depend on the spread, according to SCG.

The petrochemical complex uses naphtha, which is a product of fossil fuels, as a key raw material to produce high density polyethylene (HDPE), but the prices of naphtha are expensive.

"The spread between naphtha and HDPE prices is US$300 per tonne because of a slowdown in the global petrochemical market," said Sakchai Patiparnpreechavud, chief executive and president of SCG Chemicals. "If the spread increases to $400 per tonne, we will consider resuming operations at LSP."

The suspension does not mean SCG Chemicals will stop investing in this petrochemical complex, he said.

SCG Chemicals plans to upgrade LSP, enabling it to use ethane, a colourless, odourless, gaseous hydrocarbon, as a raw material because it is cheaper than naphtha.

Mr Sakchai said the company will spend $700 million on the new investment, especially to build an ethane storage facility.

#technip  #scg  #siamcementgroup  #longson  #naphtha  #lpg  #steamcracker  #ethylene  #propylene  #butadiene  #olefins  #hdpe  #ethane  #storagefacility