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SOCAR is looking for contractors for GPC project

SOCAR is looking for contractors for GPC project

The State Oil Company of Azerbaijan SOCAR (SOCAR) holds tenders for the selection of a general contractor for the gas processing and petrochemical complex. At the moment, applications from two consortia of companies are submitted – Rupec reports.

The vice-president of SOCAR for oil refining, David Mamedov, said in an interview with Reuters that technical proposals from two bidding companies for the general contractor are expected to be offered this summer. In September, the company expects to receive commercial offers.

Mamedov did not specify the composition of the consortia, adding that construction will be carried out according to the principle of “project financing.” As part of the GPC project, they are planning to build a gas-powered ethylene pyrolysis unit with a capacity of 610 thousand tons, a propylene unit with a capacity of 130 thousand tons and a polyethylene unit capacity of 600 thousand tons, installations Buten-1 and Hexen-1, the creation of a general plant and energy center. They are also planning to receive purified natural gas in the amount of 9.1 billion cubic meters.

The project cost is estimated at $ 4.2 billion. The Dutch ING Bank, the State Development Bank of China and the Russian Gazprombank act as financial consultants to SOCAR GPC. American Vinson & Elkins is a legal adviser at the international level, and PSG is involved as a legal adviser in Azerbaijan. The final investment decision on the SOCAR GPC project will be made in the fourth quarter of 2019. Construction work, with a positive outcome, is scheduled to begin in the first quarter of 2020. According to the company’s plans, the company will be commissioned in the third quarter of 2023.

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