The construction project of Nakhodka Methanol and Fertilizer Plant has been implemented since 2012. It is planned to start the plant’s construction in 3Q 2019. The plant will start the staged production launch and reach full capacity in 2023.
NFP will be constructed near the major seaport named Nakhodka, close to the target sales market - the Asia-Pacific Region. India and Latin America will also be available from the logistic point of view.
The Plant would produce 1.8 mln tones of commercial methanol (Stage 1) and 1.8 mln tones of ammonia (Stage 2) annually. Urea production is an option for Stage 3. The production costs per ton are expected to be among the lowest globally.
Production at full capacity is planned for 2023. The construction is planned to be conducted within the framework of EPC-contract with the leading international contractors. The construction of NFP is to be financed 80% by debt and 20% by equity.
The place for construction is located near the gas pipeline system of Gazprom, stretching from the gas fields on Sakhalin. In 2015 NFP has signed the 20-year contract with Gazprom Group to supply the natural gas in the volume of 3.15 bcm per year.
On 27 March 2019 by the Decree of the Government of Russia, NFP received the status of a resient of the territory of advanced development (TAD "Neftehimicheskiy"). Being the resident of the territory of advanced development, it will enjoy the preferential tax regime: absence of income tax for the first 5 years, reduced property tax rates and reduced insurance premiums during the first 10 years of activity.
The project is supported by the Russian State Banks, local authorities and federal government. It is anticipated that the costs of NFP for the construction of social infrastructure will be covered by the budget, and the unit construction cost will be one of the most competitive in the world.