The Chinese corporation Gezhouba Group received a contract from Gazprom for the construction of the Amur GPP worth almost 90 billion rubles. The subcontractor under this contract was Velesstroy, a long-time partner of Transneft and NOVATEK

Photo: Georgy Shpikalov / TASS

"Difficult and prestigious"

RBC managed to find out the details of the contract that Gazprom signed with the Chinese state corporation China Gezhouba Group Corporation during the visit of the President of the People's Republic of China Xi Jinping to Moscow on July 4. The corporation will build and install cryogenic gas separation units at the Amur Gas Processing Plant (GPP), which will become the largest plant in Russia.

The contract was concluded in euros, its amount amounted to 1.3 billion (86 billion rubles, or 10 billion yuan), the company said in a statement on the Shanghai Stock Exchange. The work will be carried out for almost seven years - from July 2017 to March 2024.

Contract for 790 billion rubles.

The design capacity of the Amur GPP, the first stage of which is to be built in 2021, will amount to 42 billion cubic meters. meters of gas per year. It will be one of the largest gas processing plants in the world. The gas processing plant will purify raw materials intended for delivery to China via the Power of Siberia gas pipeline. The GPP will also include the production of helium - up to 60 million cubic meters. m per year.

The investor and customer of the Amur GPP project is Gazprom's subsidiary Gazprom Pererabotka Blagoveshchensk. The project is managed by OJSC NIPIgaz, which has entered into an EPCM contract for the construction of the Amur GPP for 790 billion rubles. Several foreign companies are also involved in the project, including Germany's Linde, Italy's Tecnimont, and China's China Petroleum Engineering & Construction Corporation and Sinopec.

NIPIgaz chose a contractor in several stages: first, it received a feasibility study of the project from the largest companies capable of attracting project financing, then it held three rounds of technical and commercial negotiations, selecting three finalists, and the winner was selected after another series of negotiations, RBC said representative of NIPIgaz. At the last stage, the "daughter" of the Chinese CNPC and Sinopec fought for this contract with Gezhouba, two bidders and a consultant to the bidders told RBC. “The project is complex and prestigious, a fierce struggle unfolded for it, Sinopec fought to the last,” says one of them. But, among others, NIPIgaz put forward a demand to mobilize equipment and people at the construction site within a month, since in two months Vladimir Putin is expected at the facility, he says. Sinopec could not fulfill this requirement, and Gezhouba promptly delivered the equipment to the site, explains the interlocutor of RBC.

Gezhouba has been tracking the construction project of the Amur GPP for more than three years and has been working on the documentation for it for a year and a half, a source in the corporation told RBC. Representatives of Gezhouba met with customers 15 times, but until the last moment it was unclear who would get the contract, recalls the interlocutor of RBC. “The negotiations were tough and exhausting, it turned out to be very difficult to enter the Russian market,” adds a source in the corporation.

Assistant from Croatia

Gezhouba and Velesstroy actually entered the tender as a consortium, although it was not legally formalized, two interlocutors of RBC say. Velesstroy helped the Chinese partner to urgently issue quotas for labor and obtain the necessary permits from Gazprom's subsidiary Gaznadzor, one of the interlocutors said. As a result, Velesstroy can subcontract about half of the work, or a little more, the interlocutors explain. The exact amount of the contract between Gezhouba Group and the subcontractor will be determined within two weeks, says a RBC source close to Gazprom.

Velesstroy was established in 2008, 99% of the shares belong to the Cypriot offshore Waveform Investments Ltd, another 1% belongs to Ekaterina Pavlyuk. The Croatian businessman Mikhailo Perenchevic is considered the owner of Velesstroy, Forbes magazine wrote. Velesstroy built facilities for the first and second stages of the Eastern Siberia - Pacific Ocean pipeline, the Zapolyarye - Purpe pipeline, the Baltic pipeline system, and is now participating in the construction of the Yamal LNG plant and the Antipinsky oil refinery. In 2017, the company entered into contracts for 60.9 billion rubles, mainly with the structures of Transneft, follows from the data of SPARK-Interfax. Velesstroy is also known for renting a complex of buildings on the Black Sea coast known as Putin's Palace in 2011.

​Not the first try

Gezhouba Group is a Chinese state corporation that operates around the world, according to its website. Founded in 1970 and is engaged in the construction of power plants, including hydro, wind, nuclear and thermal, as well as build roads, airports and railway infrastructure, bridges, ports, etc. In 2016, the company's revenue amounted to $ 15 billion, profit - $ 511 million.

Gezhouba has been looking for projects in Russia for more than five years, says Oleg Demikhov, president of the Sino-Rus Association for the Development of International Trade and Economic Relations. And the company clearly does not intend to dwell on the contract for the construction of the Amur GPP. “We plan to focus on development in Russia, especially on oil and gas, energy and infrastructure projects,” a representative of the Russian office of Gezhouba told RBC.

All previous attempts by Gezhouba to enter the Russian market were unsuccessful. At the end of 2015, the Chinese state corporation, together with Oleg Deripaska's Eurosibenergo, was going to build the Telmamskaya HPP with a capacity of 450 MW, but the project was never implemented. Eurosibenergo continues to study possible joint projects with a Chinese partner, a representative of the Russian company told RBC. Gezhouba also wanted to build small hydropower plants in Karelia together with the Nordhydro company. “The Chinese company planned to become a co-investor and contractor in the construction, but as a result we chose another Chinese partner - Sinomes,” recalls the top manager of Nordhydro. According to him, Gezhouba wanted to obtain the exclusive right to negotiate and then discuss the details, which put Nordhydro at a disadvantage. "They are unconditional professionals, but it is difficult to negotiate with Chinese state corporations," says the source of RBC.

Chinese contractors have already built facilities on the Russian market. For example, in June, the Huadyan-Teninskaya CHPP was launched in Yaroslavl, which was built by TGK-2 (controls the project) and the Chinese Huadian (received 49%), Demikhov says. But, in his opinion, Chinese investors lack a systematic approach to working with Russia, this is due to the specifics of the state ownership structure in the PRC: work results are needed quickly, and unjustified expenses are not welcomed.

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Cooperation with JSC Gazpromneft-Moscow Oil Refinery has become a visiting card for JSC Promfinstroy in the oil refining industry. Over the past years, a production base of the holding has been built on the territory of the Moscow Oil Refinery, and a community building for builders is also located here. All this makes it possible to quickly solve the problems that the plant's management for the repair and maintenance of technological equipment sets for the General Contractor. One of the complex overhauls - fifteen process units were shut down at the same time - was carried out at the Moscow Refinery in fifty days in the spring of 2008. To implement the project, the holding attracted to the plant its own resources of the capital construction departments of Ryazan and Yaroslavl, subcontractors. By the time the builders arrived, rented industrial areas were repaired, and the most comfortable living conditions were created.

Combined oil refining unit EURO + (KUPN) (completion of construction)

As a result of the commissioning of the KUPN in operation, the annual volume of oil refining at the Moscow Refinery will grow to 12 million tons

Construction of the Biological Wastewater Treatment Plant (commissioned).

The capacity of the new biological treatment facilities at the Moscow Refinery will be 1400 m³ / hour. The facility will include two sites: the area of ​​the first will be about 6400 m², the second - 18,000 m². Biological treatment facilities will be built on the territory of the former buffer pond, which was dismantled by the company in 2012. Construction of the new production facility should begin in the second half of 2015. It is planned that the biological wastewater treatment plant will be commissioned in 2017.

Electrical oil desalination unit ELOU-AVT-6 (put into operation)

Reconstruction of the ELOU-AVT-6 unit began in December 2013. During the reconstruction period, about 60% of the equipment will be replaced at the facility. Upon completion of the reconstruction, the installation will acquire a new look, thanks to new blocks and new landscaping on the territory of the installation, as well as the entire technological process of processing raw materials will improve.

Construction of a Gas Fractionation Unit (GFC-2) (put into operation)

Since September 1, 2013, PROMFINSTROY JSC has started construction and installation work on a gas fractionation unit with a reflux treatment unit for removing hydrogen sulfide and mercaptan sulfur for the needs of Gazpromneft-MNPZ JSC

Diesel Fuel Hydrotreating Unit LCh 24-2000 (put into operation)

On May 3, 2012, OJSC PROMFINSTROY began work on the reconstruction of the Diesel Fuel Hydrotreating Unit LCh 24-2000 at OJSC Moscow Oil Refinery. The implementation of this project will make it possible to switch to the production of diesel fuel in accordance with the requirements of Euro 5 with unchanged productivity and bringing the unit up to the requirements of the current industrial safety standards and rules.

Catalytic Cracking Gasoline Hydrotreating Unit (commissioned)

Since April 2011, OJSC PROMFINSTROY has been building a catalytic cracking gasoline hydrotreating unit at OJSC Moscow Oil Refinery. The implementation of this project will make it possible to produce high-quality gasoline that meets European standards.

Isomerization unit for light gasoline fractions with a block for preliminary hydrotreating of raw materials using the Penex technology 2011 (put into operation)

Since April 15, 2011, OJSC PROMFINSTROY has been building a light naphtha isomerization unit at OJSC Moscow Oil Refinery, which will produce a gasoline component with an octane number of up to 90.8 points. This will allow, by reducing the content of total aromatics, sulfur and improving the fractional composition of gasolines, to ensure the production of high-octane, environmentally friendly class 5 motor gasolines in accordance with the requirements of the Technological Regulations.

The Afipsky Oil Refinery (JSC Afipsky Oil Refinery is managed by JSC ForteInvest, part of Mikhail Gutseriev's SAFMAR Group) has started the active phase of construction of the Hydrocracking Complex - the main object of the refinery modernization project.


This stage of work is planned to be completed as soon as possible - by the 3rd quarter of 2022. By this period, the main facilities included in the hydrocracking complex will be built: the hydrocracking unit itself and plant facilities (OZH), a hydrogen production unit, and a sulfur production unit. The first to start construction and installation work on the construction of hydrocracking and hydrogen production units, at the end of 2019 it is planned to start a project for the construction of a sulfur production unit, and in the 1st half of next year, the construction of new off-site facilities will begin.

In addition to the construction of a hydrocracking complex, the modernization program in the near future provides for the construction of a delayed coking unit (DCU). The start of construction and installation work at this facility is scheduled for mid-2020, completion of work - in 2023.

Following the commissioning of the new Hydrocracking and UZK complex, the production capabilities for deep oil refining and for the production of marketable products will significantly change. Thus, the refining depth will grow from 76.7% to 98.1%, and the yield of light oil products will be 87.7% against 54.2% for the current period. It is planned that following the results of the modernization, the refinery will exclude fuel oil and vacuum gas oil from the product line, using them as semi-finished products for further processing and production of high-quality light oil products demanded by the market.

Modernization of production will allow the company to increase the number of employees, both at the design and construction stage, and at the stage of commissioning new industrial facilities that require modern highly professional personnel. Employees of the Atyrau Refinery will be involved in the renovation of production and contractors will be involved, as a result, the number of workers at the peak moments of the construction will be up to 4 thousand people.

The modernization will allow the plant to become one of the most modern processing enterprises in the country. The enterprise will be equipped with modern reliable equipment that meets, among other things, the strictest environmental standards.

Thus, the modernization of production involves the construction of local treatment facilities. All the water that is obtained during the production process will be purified at modern treatment facilities and returned to the circulating water supply system.


Already, within the framework of the development program of Afipsky Oil Refinery LLC, a number of organizational and technical measures are being implemented to improve the environmental situation in the region. The depth of oil refining is increasing and, consequently, the output of high-purity products is growing. The main objects of the development program are being implemented on the southern site, located at a considerable distance from residential buildings. When designing, the best modern technologies are used, the boundaries of the sanitary protection zone are respected, projects undergo a mandatory environmental impact assessment.

The Afipsky Refinery is the largest taxpayer in the Seversky District and one of the largest in the Krasnodar Territory. During three quarters of 2019, the enterprise transferred over 1.1 billion rubles to the federal budget. Payments to the budget of the Krasnodar Territory for the reporting period amounted to approximately 520 million rubles. More than 165 million rubles have been allocated to the budget of the Seversky District. Of these, 146 million are personal income tax, that is, deductions from the salaries of plant workers. The funds allocated to the local treasury go directly to the development of the municipality and its settlements, including Afipsky.

In accordance with forecasts, at the end of 2019, the total tax deductions of Afipsky Oil Refinery LLC will reach 2.4 billion rubles.

The general designer of the construction is CJSC Neftekhimproekt, which has implemented a hydrocracking complex project at another refinery of the SAFMAR Group - the Orsk Refinery. The general contractor of the project is JSC Promfinstroy, which has also proven itself well within the framework of the modernization project for the Orsk plant.

The Afipsky refinery modernization program was developed a long time ago, the first design work began in 2014, but it was only this year that it was possible to start construction work at the hydrocracking complex. Over the past period, equipment with a long production cycle was purchased and supplied. Among the equipment suppliers are the largest manufacturers of specialized equipment: Siemens AG, Howden Thomasen Compressors B.V., Flowserve B.V, Sandvik Process Systems, Officine LuigiResta S.p.A., FBM Hudson Italiana S.p.A, Sirtec Nigi S.p.A., LINDE AG, Lummus Technology Heat Transfer B.V.

The Afipsky Refinery is located in the southern part of Russia, in the Krasnodar Territory, 92 km from the Novorossiysk port. In May 2019, the plant entered the perimeter of the SAFMAR Group, and the direct management of the enterprise was transferred to ForteInvest JSC. At the same time, there was a change in management at the enterprise - Sergei Kraschuk, who had previously headed the Krasnodar oil refinery, became the General Director of the Afipsky Refinery.

The capacity of the Afipsky refinery is 6 million tons of oil per year. At present, the refinery includes the following process units: an atmospheric oil distillation unit with a design capacity of 3 million tons per year; an atmospheric oil distillation unit with a design capacity of 3 million tons per year; a combined unit for vacuum distillation of fuel oil and visbreaking of tar with a design capacity of 2.9 million tons per year for fuel oil and 1.4 million tons per year for tar.