SOCAR – Oil and Gas Processing and Petrochemical Complex – Azerbaijan - Project Profile
"SOCAR – Oil and Gas Processing and Petrochemical Complex – Azerbaijan - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.
The "SOCAR – Oil and Gas Processing and Petrochemical Complex – Azerbaijan - Project Profile" is part of Timetric's database of 82,000+ construction projects. Our database includes a 10+ year archive of completed projects, full coverage of all global projects with a value greater than $25 million and key contact details for project managers, owners, consultants, contractors and bidders.
SOCAR GPC, a subsidiary of State Oil Company of the Azerbaijan Republic (SOCAR) is undertaking the construction of Oil and Gas Processing and Petrochemical Complex (OGPC) project in Azerbaijan.
The project involves the construction of a liquefied natural gas (LNG) processing plant, oil refinery, petrochemical plant, 250MW thermal power plant on 4,500ha of land. The project will be implemented in phases and the first phase is expected to cost around US$4,000 million.
The project will include the construction of a gas processing plant with a capacity of 10 billion m3 (BCM) and ethylene pyrolysis plant with a capacity of 610,000TPA, a propylene plant with a capacity of 130,000TPA and a polyethylene plant with a capacity of 600,000TPA, Butene-1 and Hexen-1 plants.
The gas processing plant will start producing ethane, propane, butane and methane. The oil refinery is to manufacture gasoline A-98 and A-95, diesel fuel, jet fuel, bitumen and lubricants.
Technip, Foster Wheeler, and UOP were appointed to undertake the conceptual and feasibility study for the project.
Fluor, PricewaterhouseCoopers (PwC) were appointed as the technical, financial advisors, Clifford Chance LLP and OMNI as legal consultant for the project. AECOM was appointed to provide environmental consulting services for the project.
Fugro N.V, British BP, and French Total were appointed to conduct the topographical surveys for the project.
On March 7, 2013, KBR was awarded a contract by SOCAR to manage Front-End Engineering Design (FEED) works on the gas processing plant within the new OGPC.
The project will be financed by the Azerbaijan’s Oil Fund and the Turkish banks: Türkiye Is Bankasi, Finansbank, Garanti Banki, Ziraat Banki, Vakifbank, TSKB, Yapikredi, Denizbank, Unikredit, TEB, Akbank, Halkbank and Denizbank.
In December 2014, SOCAR has appealed to the Central Bank of Azerbaijan for a major loan to finance construction of the project. The loans to be received during construction.
In March 2015, Fluor appointed as the project management contractor (PMC). Fluor will support SOCAR’s selection and management of future contractors that will perform detailed engineering, procurement, construction, commissioning and start-up of the gas processing plant as well as front-end engineering design, detailed engineering, procurement, construction, commissioning and start-up of the petrochemical plants including associated offsite facilities.
In June 2015, SOCAR announced plans to appoint investor and partners (developer) in joint construction of the complex. Several companies have submitted their proposals on participation in the project.
In March 2016, Japanese corporation Mitsui rejected to participate in the construction of the complex due commitment of high expenditure cost.
Dutch ING Bank, China Development Bank and the Russian Gazprom Bank will act as financial advisors of the project. American Vinson & Elkins is a legal consultant at the international level, and the law firm PSG is engaged as a legal advisor in Azerbaijan.
In April 2016, front end engineering design (FEED) was completed on the project.
In July 2016, the cost of the project has been reduced by approximately 50% from US$7,000 million to US$4,000 million following the decision to cut the capacity of the gas processing plant.
DuPont has been appointed as Technical consultant.
On March 17, 2017, Univation Technologies LLC, secured a contract to provide technology licensing and associated design work for polyethylene (PE) plant. Univation will provide its proprietary XCAT metallocene PE technology, which SOCAR GPC will use to produce advanced metallocene film structures suitable for food packaging, stretch wrap, heavy-duty sacks, and specialized multilayer applications.
On May 15, 2017, SOCAR signed a Memorundum of Understanding (MoU) with PetroChina, subsidiary of CNPC. As per the agreement, China Huanqiu Contracting and Engineering Corporation (HQC), subsidiary of CNPC and Technip Italy will undertake the preliminary detailed design work, where HQC will undertake the engineering and civil engineering works. Russian gas giant Gazprom also participated in the agreement with PetroChina on underground gas storage, natural gas power generation, liquefied natural gas supply.
Final investment decision (FID) on the project is expected to be taken in 2018. Construction work on first phase is expected to be completed by 2022 and the final phase by 2030.
The project involves the construction of oil and gas processing and petrochemical complex on 4,500ha of land at Garadagh in the Sangachal area, 30km from Baku in Azerbaijan.
The US$15,000 million project includes the following:
1. Construction of a gas processing plant with capacity of 10BCM
2. Construction of a 600,000TPA polyethylene unit
3. Construction of a 610,000TPA ethylene pyrolysis plant
4. Construction of a 130,000TPA propylene plant plant
5. Construction of Butene-1 and Hexen-1 plants
Reasons To Buy
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook