France’s Technip S.A. plans to complete work on design engineering as part of the construction of oil and gas processing and petrochemical complex (GPC) in Azerbaijan in the 2H2017, Technip said in a message posted on its website.
The message said that Technip has been awarded by SOCAR GPC a service contract for the ethylene and cryomax technology licenses respectively for a petrochemical complex and for the NGL [Natural Gas Liquids] recovery section of a gas processing plant, which is part of a new gas and petrochemical complex, located in Garadagh, Azerbaijan.
Technip has also been awarded a contract for the development of the process and engineering design of all the process units included in the gas and petrochemical plant, as well as the design of the related utilities and off-sites, according to the message.
The scope of work covers the engineering design of: a new gas processing plant with capacity of 10 billion cubic meters per year single train highly integrated; a new petrochemical plant including a steam cracker with a capacity of 610,000 tons of ethylene and 120,000 tons of propylene per year.
Technip’s operating center in Rome, Italy, will execute this contract, scheduled to be completed during the second half of 2017.
“We are proud of this award which reinforces the leading role of Technip in the Oil and Gas market as licensor and as engineering contractor in particular in the gas and petrochemical sector. This achievement consolidates also our long term relationship with a key client like SOCAR and at the same time reinforces our presence in Azerbaijan, considered a strategic market for Technip,” said Marco Villa, president of Technip Region EMIA [Europe, Russia, Middle East, India, Africa and Latin America for Onshore-Offshore segment].
The GPC project envisages construction of gas processing and petrochemical plants 15 km away from Baku by the Azerbaijani state oil company SOCAR. The capacity will be about 10 bcm of gas per year (these plants will become the largest enterprises in the world in this segment), the construction of a gas-working pyrolysis plant with a capacity of 610,000 tons and a polyethylene plant with a capacity of 600,000 tons, Butene-1 and Hexene-1 plants, and the creation of offsite facilities and a heat energy centre. Carrying out engineering design and construction of the project SOCAR GPC is provided by HQC Company, which has extensive experience in design, procurement and construction projects, with the support of Azerbaijani companies on the basis of drafts prepared by leading licensors in the world.
The project cost is estimated at about four billion dollars.
Dutch ING Bank, China Development Bank and the Russian Gazprom Bank act as financial advisors of SOCAR GPC. American Vinson & Elkins is a legal consultant at the international level, and the law firm PSG is engaged as a legal advisor in Azerbaijan.