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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 - EastRussia | News Primorsky Krai






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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
Asian banks can allocate borrowed funds of $ 4,6 billion to the initiators of the Nakhodka mineral fertilizer plant (NZMU) construction project by the end of this year. Alexey Kravchenko, Deputy General Director of the NZMU, stated this during the conference "Petrochemicals of Russia and the CIS". 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, the plant's representative says, the volume of borrowed funds will be about 70-75%, equity by shareholders and financial investors - 25-30%. "In the period from the second to the forth quarter of this year, we intend to achieve final coordination of financial issues with all parties to the project and ensure financial closure by the end of the year," said Alexei Kravchenko. The Nakhodka plant of mineral fertilizers belongs to the head of the board of directors of Sevmorputbank, Artem Obolensky.

"The project has signed an 20-year agreement with Gazprom on the supply of 3,15 billion cubic meters of natural gas annually, and there is a large plot of land (628 Ha) adjacent to the built-up port area next to Nakhodka, supported by Russian state-owned banks, as well as regional and The federal government, the construction of 1-th stage begins in 2017 year, the production - in 2021 year ", - said Alexei Kravchenko. According to him, Gazprom has already distributed the resources of its Yuzhno-Kirinskoye field to 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 ha in the Kozmino bay area has been allocated for the construction of the NZMU. Planned output: 1,1 million tons of ammonia, 2,0 million tons of carbamide and up to 2,0 million tons of methanol. The key target market is the world's largest growing ATR market. Production of the first stage of the plant, methanol, is experiencing the fast-growing demand from the MTO industry in China. "According to forecasts, prices for the products of the second stage, ammonia and urea, should be restored in the next 4-5 years," says Alexey Kravchenko.

The main markets for the sale of the plant's products should be China, India, Southeast Asia and Latin America. From NZMU only 1,5 thousand kilometers by sea to Shanghai and 800 km to Korea and Japan, so that the company will be located closer to key markets than Iran, the US or Canada. According to the deputy director general of the NZMU, the cost of production will be about $ 80-90 per ton of production - so far this is one of the lowest indicators in the world.