Maire Technimont, Sinopec awarded Gazprom contract

An artist rendering of the Amurski Gas Processing Plant (AGPP) in Russia. Image source: Gazprom. 

 

Saint Petersburg—Maire Tecnimont S.p.A. 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), which is acting as general contractor in the interest of Gazprompererabotka Blagoveshchensk LLC, part of Gazprom Group.

The contract has an estimated overall value of $4.4 B. The contract value is composed by an EP lump sum portion of approximately $1.92 B (relating to engineering and procurement services), and a provisional reimbursable portion related to construction works, site services and site logistics of approximately $2.48 B.

The project scope entails all engineering, procurement, construction, commissioning and performance test activities for the realization of utilities, infrastructure and offsite 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 majority of the project’s activity is concentrated in the first two years, and 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 offsite 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 Bm³y of natural gas, 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 almost $13 B.

The AGPP project represents the largest contract ever awarded to the Maire Tecnimont Group, and consolidates its long-lasting presence in 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.

CDP, Italy’s National Promotional Institution, and its subsidiary SACE, the Italian Export Credit Agency, will be involved, alongside with Chinese financial institutions.

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