The construction project of Nakhodka Methanol and Fertilizer Plant has been implemented since 2012. It is planned to start the plant’s construction in the beginning of 2018. The plant will start the staged production launch in the 3Q2021 — 1Q2022.
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.
The construction budget of the first stage of the project is $1 450 - 1 750 mln (depending on the level of government support). Staged startup of the first stage at full capacity is planned for 2022. The construction is planned to be conducted within the framework of EPC-contract with the leading international contractors. The constriction of NFP is planned to be financed by the project finance and ECA covered loans, which are estimated at 70% of the budget, and 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.
NFP has applied for the status of the territory of advanced development. 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.