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Construction of Nitrogen Fertilizers Production Complex at JSC “Grodno Azot”

 

A. Project Opportunity Description

À1. Project Name

(à) Short name: Construction of Nitrogen Fertilizers Production Complex

(b) Full name: Construction of Nitrogen Fertilizers Production Complex at JSC “Grodno Azot”

(c) Summary:

It is expected to build a Nitrogen Complex consisting of: a combined ammonia/methanol production unit with a capacity of 506,000 / 80,000 t/a and urea production unit with a capacity of 500,000 t/a

 

A2. Project Status

A preliminary cost-benefit analysis of the project is made. Negotiations with potential investors.

 

A3. Organizations involved and their roles

(à) “Grodno Azot” JSC – project proponent, 100, Kosmonavtov pr., Grodno, 230013, Republic of Belarus

 

À4. Project Description (approaches, objectives, components, results, stages, time, financing, advantages, influence on transient processes in economics, etc.)

The main goals that new ammonia, methanol and urea units will enable to implement are:                                                                         — meet the demand of national economy in methanol and mineral nitrogen fertilizers, provide food supply security in the Republic of Belarus;

— increase a yield of mineral fertilizers in the Republic of Belarus.

 

À5. Background / history / overall program / related or similar projects

Based on the chemical units experience, the operating life of such units lasts for about 40 years. From the above reasoning, by 2020 Grodno Azot JSC will be required to put the worked-off units out of operation, and in its turn it will endanger the food supply security of the Republic of Belarus.

 

À6. Environmental impact summary

The project will comply with the requirements stipulated in the effective SanPiN and SNiP standards. No changes are expected in the noise level, content of harmful substances in the air of the work zones, concentration of harmful substances in the surface layer as well as the  background concentration, due to implementation of measures aimed to keep them within the maximum allowable limits.

 

À7. Possible obstacles/ problems/ risk assessment

Increase of price on natural gas for Belorussian companies. Fall of global market prices on mineral fertilizers.

 

À8. Project implementation and recoupment period

Implementation period: IV quarter 2015; payback period: 10,5 years..

 

À9. The branch of industry the Project belongs to

Petrochemical branch

 

B. Capital Cost Items (total investment required for the Project realization)

Â1. Project physical components (equipment, works, services, etc. required for the Project implementation)

Â2. Capital cost, mln USD

Design works

57.0

Purchase of equipment and materials (including VAT and custom duties)

579.2

Construction and erection work

200.0

Total

836.2

 

Ñ. Capital (as per its source of origin) to be available from the project initiator, owners,  copartners, sponsors)

Ñ1. Type of sources

C2. Amount, mln USD

Own funds

 

 

D. Investments required. Insufficient means

D1. Lack of required funds, type of financial assistance (credit, share interest and e.t.c)

Lack of required funds is  836,2 mln USD Type of financial assistance— direct investments

 

D2. Sources of financing

D3.Type of  financial instrument

D4. Amount, mln USD

Investor's funds

direct investments

836,2

 

Å. Demand (Consumers) and revenues

Å1. Type of consumers/markets, volumes, prices, revenues, profits/savings:

Products for domestic and world markets.

Å2. Revenue (Sales)

Å3. Amount, mln USD

 

208,9

 

F. Operating and Maintenance Expenses

F1. Expenses components, expenses cover strategy, organization of production

Free area, utilities pipelines and power supply are available for the project implementation.

 

F2. Cost items

F3. Amount,  mln USD

Variable costs

115,7

Labor inputs

1,8

Expenses from labour funds

0,6

Depreciation of fixed assets

59,7

Total:

177,8

 

G. Net Income Value

G3. Receipts E2 less operating expenses F2

G4. Amount, mln USD

 

31,1

 

H. Source of Information about the Project

Í1. This form is filled in by (Name, position):

V.V.Bogdanov – Deputy Chief Engineer, Head of Service for Prospective Development

H2. Organization (name and address):

“Grodno Azot” JSC, 100, Kosmonavtov pr., Grodno, 230013, Republic of Belarus

H3. Òål/Fax/ Å-mail:

 Tel. (+375 152) 79 42 87, fax (+375 152) 79 41 34, e-mail: bogdanov@azot.com.by

H4. Date: 18.02.2010

H5. Departmental identity of the Project: concern "Belneftekhim"

 

 

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