Baku. 9 December. REPORT.AZ/ Large scale gas processing and petrochemicals facility to be constructed by State Oil Company of the Azerbaijan Republic Gas Plastics Company (SOCAR GPC) will enter to exploitation in 2022.
Report informs referring to the SOCAR GPC, fully owned by SOCAR, the complex will consist of gas processing plant and petrochemicals facility.
The capacity of a single train gas processing plant will be 10 billion m3 per annum. A petrochemical plant will comprise of a steam cracker, swing polyethylene unit and other units.
The plant will produce approximately 600 000 t of polyethylene and 120 000 t of propylene per annum. The propylene feedstocks will be delivered to SOCAR Polymer for production of polypropylene in Sumgait.
The project development stage will last 15-18 months. During this stage, SOCAR will finalize engineering works, negotiations on procurement, construction and financing issues. Thus sufficient information will be available for Final Investment Decision. Upon making a final decision, construction works will be launched and last for 48 months. The plants are scheduled to be commissioned in 2022.
The financing plan consists of a combination of equity, direct funding, export credit agency (ECA) covered debt and commercial bank debt, primarily from Asian and European companies and institutions. The engineering, procurement and construction (EPC) selection process is underway. Financial close is targeted for the end of 2017. ING Bank, China Development Bank and Gazprombank have been mandated as co‐financial advisers. SOCAR intends to finance the project on a non‐recourse basis, and seeks to achieve financing terms and conditions standard for project financings of this type. Vinson & Elkins is acting as the international legal adviser of SOCAR GPC, with PSG Law Firm as Azerbaijani legal adviser.
10 000 people during construction works and 1 500 people during the operation stage; Positive influence on the national currency by means of the increase of export potential by more than 1 billion USD per annum; Flow of substantial amounts of tax revenues for the State treasury (during 2022-2041): 3.5 billion USD.
Notably, the State Oil Company of Azerbaijan Republic (SOCAR), Russia's Gazprombank, Italian export credit agency (SACE) and Russian Export Credit Agency signed “Memorandum of understanding on financing and construction of gas-chemical facility” in Azerbaijan. Solemn signing ceremony took place in the presence of President of Russia Vladimir Putin and Prime Minister of Italy Matteo Renzi, within St. Petersburg International Economic Forum.
Notably, Ministry of Taxes of Azerbaijan has registered "SOCAR GPC" LLC, established by the State Oil Company of Azerbaijan Republic in August of this year. Authorized capital is 1 000 US-dollars, legal representative Farid Jafarov.