VIS Group has completed its participation in the project for the construction of the Novy Urengoy gas chemical complex

Since 2009, “PC VIS” LLC was one of two general contractors for the construction of Novy Urengoy gas chemical complex (in the Yamal-Nenets Autonomous District). The contract has been terminated on the initiative of PC VIS LLC from September 23, 2017 due to the client’s failure to fulfill key terms of the contract and a lack of funding.

This decision was not easy for the company. For almost nine years, a huge amount of work has been done at one of the country's largest industrial facilities. At the main production site (ethane/ethylene plant and high-pressure polyethylene plant), all production buildings have been erected, as well as more than 95% of metal structures; technological pipelines and equipment have been 80% mounted. The work was carried out under the supervision of chief engineers and representatives of licensors - firms Linde and Tecnimont. In addition, construction and installation of the 120 MW gas turbine power station have been completed, and complex tests have been successfully carried out. Numerous facilities have been put into operation; most of the rest are in a high degree of readiness.

Unfortunately, the influence of external economic factors led first to failures, and then to a complete cessation of construction financing. Over the past two years, VIS Group has made every effort not to stop work at the site, pay salaries and taxes on time, pay subcontractors, suppliers, save more than two thousand employees of high-class specialists and builders. The measures taken have made it possible to prevent social upheavals that are common in such situations. All this time, there was a hope for financing resumption for the project, the implementation of which had already been "frozen" in the past. However, the further maintenance of a huge object in a high degree of readiness at its own expense became beyond us, as the Group understands the need for strict and timely implementation of commitments on the other most important projects for the country, is aware of the responsibility for them, and cannot admit any breakdowns there.

The client –Urengoy gas and chemical complex LLC filed a lawsuit against PC VIS LLC, where presented claims for the amount of slightly more than 35 million rubles (arrears for consumed energy resources).

In this situation, the company was forced to file a counterclaim on the payment of unsettled liabilities of Urengoy gas and chemical complex LLC to PC VIS LLC for the work performed and the inventory acquired.

The experience accumulated and the understanding that the current difficult situation is related to the influence of external factors give grounds to express the Group's further interest in completing the construction and launching the Novy Urengoy gas chemical complex in the future.

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