SOCAR scales back plans for Azeri gas chemical complex as Japanese pull out

Azeri gas chemical complex: The annual processing capacity of Azerbaijan’s planned new gas chemical complex is to be scaled back from 12bcm to 10bcm and its costs capped at $4bn, the country’s state-run oil company SOCAR announced this week after talks with a consortium of Japanese companies broke down. 
“The talks with Japanese companies were unsuccessful, as they said the project was  not attractive for them due to high expenditures,” a SOCAR spokesman said.  “Therefore, SOCAR  has signed memorandums of intention with the  China National Petroleum Corporation (CNPC), Russia’s Gazprombank and Agency for Export Credit and Investment Insurance (EXIAR), as well as Italian export credit agency SACE on the gas chemical complex project. We are currently evaluating all the proposals in order to choose the most acceptable one,” said SOCAR’s representative. “We also take into account that if the oil prices rise, the Japanese companies will reconsider their participation in the project.”

Source: TREND