Active construction of EuroChem Northwest-2 has started
EuroChem held a solemn ceremony of the start of the active construction of the EuroChem Northwest-2 plant (Kingisepp, Leningrad region). It was attended by the Governor of the Leningrad region Alexander Drozdenko and Chairman of the Board of Directors of EuroChem Igor Nechaev.
The capacity of the EuroChem Northwest-2 plant will be 1.1 million tons of ammonia and 1.4 million tons of carbamide per year. The output of the first products and achievement of designed capacity is planned for 2023.
“EuroChem today and twenty years ago differs not only in capacity but in the culture of production and the used technologies. Today’s company is a modern production facility with the strictest environmental standards. We work with EuroChem as one well-coordinated team and have good credit of trust to each other. These relations are an example, which we follow while cooperating with other major investors in the region,” said Alexander Drozdenko.
“The EuroChem Northwest-2 project is the second stage of the development of the EuroChem industrial site in the city of Kingisepp. In June 2019, within the framework of the St. Petersburg International Economic Forum, we launched an ammonia plant,” noted Igor Nechaev. “During the construction of new facilities, we apply best available technologies to ensure efficient processing of raw materials and cyclical use of resources. The implementation of the new project will significantly strengthen the positions of EuroChem and Russia as a whole in the world carbamide and ammonia market.”
The project requires financing of about 100 billion rubles (about $1.4 billion). VEB, Sberbank, VTB Bank, Gazprombank, and Otkritie Bank have already provided EuroChem with 33 billion rubles (approximately $451.7 million), of which 22 billion rubles (approximately $301 million) are funds of the VEB Development Institute. This money is mainly used to finance costs under the EPC contracts, confirming the completion of construction on time.
EuroChem Northwest-2 will help to deepen the processing of natural gas in Russia, create over 400 new jobs with competitive wages, increase the annual non-energy exports of Russia by $0.4 billion per year, and additional budget revenues, which will significantly contribute to the development of the Leningrad region.
The production facilities of carbamide and ammonia have a closed system of water circulation, which will allow using water of any quality in the technological process many times, excluding the appearance of wastewater. This system will also allow using wastewater from the nearby operating enterprises, which will have a beneficial effect on the ecosystem of the local Luga river and the basin of the Gulf of Finland as a whole.