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SOCAR lets contract for first Azerbaijani polypropylene plant
April 7, 2015 + + + SOCAR Polymer LLC, a subsidiary of state-owned State Oil Co. of Azerbaijan Republic (SOCAR), has let an engineering, construction, and procurement (EPC) contract to Maire Tecnimont SPA, Milan, to build the country’s first polypropylene (PP) plant, in the Sumgait Chemical Industrial Park (SCIP), about 30 km north of Baku. Under the contract, which was awarded on a lump-sum basis, Maire Tecnimont subsidiaries Tecnimont SPA and Kinetics Technology SPA, will provide complete engineering services, equipment and material supply, and construction activities for the plant, including all associated utilities and offsite installations, Maire Tecnimont said. The project’s scope also will include start-up and commissioning activities for the plant, the service provider said.
Maire Tecnimont valued the EPC contract at about €350
million. In late 2014, SOCAR Polymer secured both a $420 million loan and $2 billion line of credit from Russia’s Gazprombank for the proposed petrochemicals project at SCIP, which at the time, was to produce 200,000 tpy of PP and 120,000 tpy of high-density polyethylene, SOCAR said in a Dec. 13, 2014, release. The PP plant, which SOCAR purchased from Varennes, Que., and had dismantled, reconditioned, and transported to Azerbaijan, will use LyondellBasell’s Spheripol process technology, according to project descriptions from Maire Tecnimont and SCIP.
The PP plant is scheduled to be commissioned by
late 2016, SCIP said. Azerbaijan lets contract for refining, petchem megacomplex
The OGPC greenfield megaproject will include interfaces between the new gas processing and petrochemical production plants, as well as between associated process units, utilities, and offsites, according to the service provider. Fluor, which will execute its scope of work on OGPC from its Farnborough office in Hampshire, England, said it will book an undisclosed value of the contract under its first quarter-2015 earnings. First announced in 2012, OGPC initially was estimated by SOCAR to require an investment of $14 billion and be commissioned between 2017 and 2020 (OGJ Online, June 3, 2013).
While no
firm revisions to total capital investment costs for the project have been
confirmed by SOCAR, the project has been delayed, according to a November
2014 presentation from the company. Based upon a project feasibility
study for the proposed complex, SOCAR said it plans to commission OGCP on
a phased basis during 2019-23.
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