MOSCOW, November 13. /TASS/. Lukoil and China National Chemical Engineering & Construction Corporation Seven (CC7) have signed a cooperation agreement on creation of a gas chemical facility in the city of Budennovsk in Russia’s Stavropol Region, the Russian oil major reported. The document provides for the development of project documentation in cooperation with Russian companies.

Moreover, an option to use an incentive mechanism is currently being examined in collaboration with the Stavropol region authorities.

The project will allow to capitalize on the natural gas produced at Lukoil Group fields in the North Caspian by manufacturing carbamide, a chemical fertilizer that is much in demand in the world market.

CC7 is a wholly-owned subsidiary of China National Chemical Engineering Corporation (CNCEC), one of the largest companies in China with great expertise in creating chemical facilities, which conducts operations in over 80 countries.