Irkutsk
Ulan-Ude

Blagoveshchensk
Chita
Yakutsk

Birobidzhan
Vladivostok
Khabarovsk

Magadan
Yuzhno-Sakhalinsk

Anadyr
Petropavlovsk-
Kamchatsky
Moscow

This text is translated into Russian by google automatic human level neural machine.
EastRussia is not responsible for any mistakes in the translated text. Sorry for the inconvinience.
Please refer to the text in Russian as a source.

Fertilizer plant is waiting for approval

The deal on financing of the NZMU is close to closing

The project of the Nakhodka mineral fertilizer plant (NZMU) worth more than $ 6 billion will be financed by 70-75% at the expense of borrowed funds, the closing of the credit transaction should occur by the end of this year.

Fertilizer plant is waiting for approval
Photo: shutterstock.com
Asian banks may allocate $ 4,6 billion in loans to initiators of the construction project of the Nakhodka Mineral Fertilizer Plant (NZMU) by the end of this year. This was stated in the framework of the conference "Petrochemistry of Russia and the CIS" by the deputy general director of NZMU Alexei Kravchenko. The total cost of the project, we recall, is estimated at $ 6,3 billion.

Last September, NZMU and the Far East Development Fund signed a memorandum of intent for financing the project, in December of the previous year similar agreements were signed with VEB and the Japanese JBIC, and in February 2017-th NZMU received letters of guarantee from KEXIM, KSURE And several other credit and export agencies, and based on the recommendations of VEB and other potential partners, NZMU introduced the concept of sequential launch into the project development plan.

In total, says the representative of the plant, the volume of borrowed funds will be about 70-75%, capital from shareholders and financial investors - 25-30%. "In the period from the second to the fourth quarters of this year, we intend to reach the final agreement on financial issues with all parties to the project and ensure financial closure by the end of the year," said Aleksey Kravchenko. The Nakhodka plant of mineral fertilizers belongs to the head of the board of directors of Sevmorputbank Artem Obolensky.

"The project has a 20-year contract with Gazprom to supply 3,15 billion cubic meters of natural gas annually. There is a large plot of land (628 hectares) adjacent to the built-up port area near Nakhodka. The project is supported by Russian state banks, as well as by the regional and federal government, construction of the 1st stage begins in 2017, production - in 2021, "said Aleksey Kravchenko. According to him, Gazprom has already allocated the resources of its Yuzhno-Kirinskoye field for prospective consumers in the Far East, including the supply of gas to the plant.

According to the press service of the Nakhodka administration, almost 600 hectares have already been allocated for the construction of the NZMU in the area of ​​Kozmino Bay. Planned production volumes: 1,1 million tons of ammonia, 2,0 million tons of urea and up to 2,0 million tons of methanol. The key target market is the world's largest growing APR market. The plant's first phase product, methanol, is experiencing rapidly growing demand from the MTO industry in China. “According to forecasts, prices for second-line products, ammonia and urea, should recover in the next 4-5 years,” says Aleksey Kravchenko. 

China, India, Southeast Asia and Latin America should become the main sales markets for the plant's products. From NZMU only 1,5 thousand kilometers by sea to Shanghai and 800 kilometers to Korea and Japan, so the enterprise will be located closer to key markets than Iran, the USA or Canada. According to the deputy general director of NZMU, the production cost will be about $ 80-90 per ton of products - while this is one of the lowest rates in the world.
February 25: current information on coronavirus in the Far East
Digest of regional events and latest statistics