Russia: Engineering Maire Tecnimont Forms JV for the Development of Urea Fertilizer Plant in Russia
Russia's Kuibyshev Azot and Maire Tecnimont announce the incorporation of a joint-venture to develop, build, finance, maintain and operate a green-field urea plant, to be implemented in Tolyatti, in the Samara region of the Russian Federation.
Tolyatti/Russia — The urea plant will have the capacity of 1,500 metric tons per day and will utilize Urea 2000 Plus Pool Reactor technology by Stamicarbon, Maire Tecnimont fully owned subsidiary, while the granulation unit is based on Stamicarbon’s fluid bed granulation technology. The plant will be realized and integrated within Kuibyshev Azot’s industrial site in Tolyatti, in the Samara region.
Both parties have already started the Basic Engineering and Project Documentation works under the coordination of Tecnimont, Maire Tecnimont’s main EPC contractor, in collaboration with Stamicarbon and Russian Design Institute JSC NIIK. Stamicarbon is the market leader in the development and licensing of urea production technology with more than 240 urea plants worldwide using its state-of-the-art technologies.
KuibyshevAzot will hold 68 % of the JV, and Maire Tecnimont, through its fully owned project development company MET Development, the remaining 32 %. Total investment cost for the project is preliminarily estimated to be around € 160 million. Maire Tecnimont’s equity contribution is preliminarily estimated to be around € 11 million, taking into account financial leverage and expected contributions from third parties.
In parallel, parties are closely collaborating in the project structuring activities in order to raise non-recourse project financing. The companies intend to attract financing from foreign banks with the support of the Italian Export Credit Agency, Sace (part of CDP Group). In addition, Simest (part of CDP Group supporting foreign investments of Italian companies) is also evaluating the possibility to share MET Development’s investment in the project.
Following the financial closing and the completion of the BE&PD works — anticipated in Q2 2018 — the JV shall enter into a Lump Sum Turn Key (LSTK) EPC contract with Tecnimont.