China and Azerbaijan sign MoU for $17bn OGPPC downstream project

Natural Gas Caspian SeaOGPPC: China’s largest oil and gas producer and supplier CNPC has signed an MoU with the Azeri state-run company SOCAR for the development of its $17bn Oil & Gas Processing and Petrochemical Complex (OGPPC) Caspian project, SOCAR President Rovnag Abdullaev said earlier this week.
Once developed, the new complex will have the annual capacity to process 12bn m³ of gas, to refine 8.6m tons of crude oil and to produce 1.1m tons of petrochemical products. Work on the first phase was due to have started last year with completion scheduled for 2023, but was delayed while SOCAR looked for an overseas partner. The signing of the MoU suggests that CNPC has won the project after SOCAR rejected proposals put forward by Japan’s Mitsui.
The OGPPC project will not only significantly increase CNPC’s presence in the Caspian Sea, but will also eventually provide China with an alternative sources of energy and lessen its dependence on Russia and Turkmenistan.