02-06-2017
Gazprom award contract to Maire Tecnimont and Sinopec Engineering
Maire Tecnimont S.p.A. announces that its subsidiary Tecnimont S.p.A., as majority leader of the consortium including Tecnimont Russia and Chinese companies Sinopec Engineering Group and its subsidiary Sinopec Ningbo Engineering Corp., has signed a contract with JSC NIPIgaspererabotka (NIPIGas) – acting as general contractor in the interest of Gazprompererabotka Blagoveshchensk LLC, part of Gazprom Group. The Contract relates to the execution of the “Package number 3” consisting of Utilities, Infrastructure and Offsites facilities of the Amurski Gas Processing Plant (AGPP) in Svobodny city, in the Amur district in the Far East region of the Russian Federation, close to the border with China.
The contract has an estimated overall value of €3.9 billion. The contract value is composed by an EP Lump Sum portion of approximately €1.7 billion (relating to engineering and procurement services) and a provisional Reimbursable portion related to construction works, site services and site logistics, of approximately €2.2 billion.
CDP, Italy’s National Promotional Institution, and its subsidiary SACE, the Italian Export Credit Agency, will be involved, alongside with Chinese financial institutions.
The Project scope entails all engineering, procurement, construction, commissioning and performance test activities for the realization of Utilities, Infrastructure, and Offsite facilities of Gazprom’s AGPP. The majority of the project’s activity is concentrated in the first two years, starting from the contract signature; project completion is expected by the end of 2023. The project is strategic for the whole AGPP complex due to the timely availability of the utilities and offsites facilities that are needed by the process plants, as well as for the management of all the process interfaces, that are included in Tecnimont’s and Sinopec’s scope.
Once completed, the AGPP will be one of the largest gas processing plants in the world with a feed gas capacity of 42 billion cubic meters of natural gas per year, and will be an essential part of Gazprom’s strategic plan to supply Russian natural gas to China. The AGPP Complex will be only the first milestone of a large industrial development, that will include significant investments of the Russian Federation in downstream petrochemicals to be fed with products associated to natural gas of AGPP. The overall AGPP industrial complex investment is estimated at approximately €11.5 billion.
Founded in 1972, Russian General contractor NIPIGas is a leading center for design management, procurement, logistics and construction in the gas treatment and petrochemical sectors, employing 2,000 people.
The AGPP project represents the largest contract ever awarded to the Maire Tecnimont Group. It consolidates the long-lasting presence in the the Russian Federation and represents another strategic milestone for Maire Tecnimont’s track record in gas treatment, one the key drivers of its core business.
Pierroberto Folgiero, Maire Tecnimont Chief Executive Officer, commented: “This project confirms the reliability of our strategy in pursuing selective business in well known geographies, as the Russian Federation, one of our historical downstream markets. It is a real honor to keep on supporting Gazprom in its strategic initiatives. This award is an outstanding stepping stone for the emerging gas processing industry in Eastern Russia and another important milestone, which expands and fosters our long-lasting relationship with Chinese industrial partners, like the Sinopec Group, for the execution of complex projects.
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