EuroChem Group AG, a global agrochemical company, announced that its EuroChem Northwest subsidiary has signed a loan agreement with a club of banks for project financing of an ammonia project in Russia.
EuroChem Deputy Finance Director Alexander Gavrilov said, "This milestone facility (loan) secures long-term funding for one of the Group's most strategically important projects, while the non-recourse nature of the facility preserves the Group's borrowing flexibility.
The ammonia plant will be built in Kingisepp, Russia, within close proximity to EuroChem Group's phosphorit phosphate fertilizer facility. The plant will have a design capacity of 2,700 tonnes per day or 1 million tonnes per annum.
In addition to the ammonia production facility, the project also includes utilities and offsites, such as a warehouse for liquid ammonia.
The ammonia plant will use technology developed by KBR. The construction phase began in the third quarter of 2015 and the ammonia plant is expected to be brought online in late 2018.
EuroChem, as a global agrochemical company, produces primarily nitrogen and phosphate fertilizers, as well as certain organic synthesis products and iron ore. EuroChem is currently developing two sizeable potash deposits in Russia with its VolgaKaliy and Usolskiy Potash greenfield projects. In all, EuroChem Group operates production facilities in Belgium, China, Kazakhstan, Lithuania, and Russia and employs more than 23,000 people globally.