Japanese Mitsui and Chinese Huanqiu Contracting and Engineering Corporation show interest in investing in Azerbaijan’s Oil and Gas Processing and Petrochemical Complex project, said Tofig Gahramanov, vice-president for strategic development at Azerbaijan’s state energy company.
The OGPC project has never been frozen completely, said Gahramanov by further elaborating that the matter is about the suspension of the active phase of the works on the project.
“It has already been a year that the active work on the project stands at the lowest level. Currently, analysts and economists are working on it”, he said.
The vice president also added that at the initial stage, large companies such as Shell, Total Petrochemicals and Saudi companies were showing interest in the project. Nevertheless, those companies refused to participate in further talks due to the lower oil prices and decrease in the profitability of the project.
Currently, SOCAR is looking for partners for creating a joint venture, Gahramanov said.
The OGPC is one of strategically important projects implemented by SOCAR. The complex which will be located 60 kilometers away from Baku will consist of three processing enterprises and a thermal power plant.
Moreover, it has multiple interfaces not only between process units, utilities, and offsite facilities, but also between the new gas processing and petrochemical facilities.
The completion of the project is expected by late 2022 or early 2023.
The cost of the project amounts to $17.1 billion including interest on allocated loans received during the construction period.
The realization of the project will improve the quality of refined oil and gas products, enhance the export potential of the country and help protect the environment of the capital.