Russia’s PhosAgro signs contract for new ammonia facility

21 June 2013 12:29  [Source: ICIS news]

LONDON (ICIS)--Russian fertilizer producer PhosAgro has signed a contract with an international consortium led by Mitsubishi Heavy Industries for the construction of a new, energy-efficient ammonia plant at PhosAgro-Cherepovets in the Vologda region, the company announced on Friday.

The new line is expected to have an ammonia production capacity of 2,200 tonnes/day, or 760,000 tonnes/year, PhosAgro said in a statement.

The commissioning of the new plant is planned for the first half of 2017, and with its launch PhosAgro’s ammonia capacity will increase by nearly 70%.

PhosAgro said that total investment in the new facility and related infrastructure, which it plans to finance from its own cash flows and third-party funding, is expected to be $785m (€597m).

The new ammonia facility will rank among the best in the world in terms of characteristics like raw materials and energy consumption, labour productivity and up-time between repairs.

The plant will also have a reduced environmental impact, the company said. Natural gas consumption per unit of production is expected to be 20% lower than the current average for ammonia facilities in Russia.

In order to supply the new plant, Russian oil and gas giant Gazprom has agreed to supply an additional 800 million cubic metres of gas per year to PhosAgro following the launch of the new facility, PhosAgro said.

“The construction and commissioning of the new ammonia plant at our PhosAgro-Cherepovets site will mark a new phase in PhosAgro’s development, strengthen its market-leading position, create new jobs and improve production efficiency,” said PhosAgro CEO Maxim Volkov.

Volkov added that the project was designed to achieve one of the company’s key strategic goals of increasing internal processing of its own phosphate rock to produce higher volumes of phosphate-based fertilizers.

The contract was signed during the St Petersburg International Economic Forum, with the Russian Federation Minister for Industry and Trade, the Governor of the Vologda region and PhosAgro Deputy Chairman of the Board in attendance.

The consortium led by Mitsubishi Heavy Industries includes Japan’s Sojitz and Russian registered company Renaissance Heavy Industries, which will be responsible for construction work. The licensor of the ammonia production technology is Halder Topsoe.

($1 = €0.76)


By: Rebecca Clarke
+44 20 8652 3214



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