The cost of the first stage of project to build the Oil Gas Processing and Petrochemical Complex was reduced by nearly 50% due to the decision to cut the design capacity of the gas processing plant.

"This still concerns the implementation of the OGPC project, including the construction of the first stage of the gas processing plant and the petrochemical plant. However, for the reduction of spending on the project we decided to slightly change the parameters and reduce the capacity of the future gas processing plant from 12 billion cubic meters (bcm) to 10 bcm a year. Now the cost of the project is estimated at $4 billion," State Oil Company of the Azerbaijani Republic (SOCAR) Vice President Suleiman Gasymov told journalists.

It was reported earlier that initially the cost of the first stage of the project was estimated at $7 billion, with account of interest payments on loans - $8.45 billion. The first stage includes the construction of a gas processing plant with a capacity of 12 bcm a year, a chemical plant for the production of base polymers (high and low density polyethylene and polypropylene) with a capacity of 860,000 tonnes a year, and site facilities with an auxiliary power unit. In the framework of the second stage an oil refinery will be built with a capacity of 8.6 million tonnes of oil a year.

Gasymov said that SOCAR is planning to bring in partners from Japan for the construction of the gas processing and oil and gas chemical plants. However, he said that talks have not been successful: in light of the significant costs, Japanese companies have called the project unattractive.

www.ann.az