July 10, 2017 - Assignment

Sinopec and Tecnimont have been awarded a EUR 3.9 billion EPC contract

On 2 June 2017, Sinopec Ningbo Engineering Co., Ltd and Sinopec Engineering Group (China), in consortium with Tecnimont S.p.A. (Italy) and Tecnimont Russia OOO, signed an EPC contract with JSC NIPIgaspererabotka (NIPIGas), a company of the Gazprom Group, for the construction of utilities, infrastructure and offsite facilities for one of the three packages of the Amurski Gas Processing Plant Project (AGPP), in the Amur district in the Far East region of the Russian Federation, close to the border with China. The contract has an estimated value of approx. EUR 3.9 billion. The contract value is composed of a lump sum portion of approx. EUR 1.7 billion and a provisional reimbursable portion of approx. EUR 2.2 billion.

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

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 overall AGPP industrial complex investment is estimated at approx. EUR 11.5 billion.

Sinopec Ningbo Engineering, Co. Ltd is advised by Mannheimer Swartling in the project. Lawyers from the firm's offices in Sweden, Russia and China have advised on the EPC contract, the consortium contract and Sinopec Ningbo Engineering, Co. Ltd's establishment in Russia.