Grodno Azot to build new nitrogen complex using Chinese, European loans

Grodno Azot to build new nitrogen complex using Chinese, European loans


The authorities of Belarus made a positive decision on the construction of a new nitrogen complex at Grodno Azot, said director general of the enterprise Igor Bobyr.

"A positive decision has been made to build a new nitrogen complex. Its annual capacity when it comes to the production of ammonia will be 875,000 tons. Also, it will produce 1,225 thousand tons of carbamide and 200 million m3 of hydrogen. In fact, this will be a new plant, which should pay back in about 10 years" said Mr. Bobyr.

The cost of the new nitrogen complex is "about $1.3 billion without VAT."

An agreement has already been reached to provide a preferential Chinese credit line. "We received a good offer from one of European banks. Belarusbank is also ready to assist - the "road map" for project financing has been worked out. After selecting the general contractor for the construction, we will provide more details," Bobyr said.

He believes that the general contractor of the project will be selected in 2018 through a competition among Chinese companies. Commissioning of the complex is planned at the end of 2024.

"Our obligatory condition for the general contractor is that when building a nitrogen complex, the most modern and high-quality technologies and equipment of European or Japanese manufacturers should be used, which will allow us to produce products of the highest quality.

We are determined to make the project cheaper," underlined the head of Grodno Azot.

According to Igor Bobyr, the project will enable the company to double the capacity for the production of carbamide and significantly increase exports. The purchase of new technologies will create an environmentally friendly production, which produces significantly less waste and emissions of harmful substances into the atmosphere.

"Innovative production will be more energy efficient: the specific energy consumption will be reduced by almost 20%, and gas consumption by about 15%. The production of ammonia, which is the raw material for the nitrogen industry, will be much cheaper, which will save tens of millions of dollars every year," the head of the enterprise expects.

During sowing campaigns, it will be possible "to simultaneously satisfy the domestic market and have a margin from high export prices." As a result, Belarus will be able to earn additional hundreds of millions of dollars annually.