Construction of Nitrogen fertilizers production complex at JSC «Grodno
Azot»
A. Project Opportunity Description:
A1. Project Name:
Construction of Nitrogen fertilizers production complex at JSC «Grodno Azot»
a. Short name:
Construction of Nitrogen fertilizers complex
b. Full name:
Construction of Nitrogen fertilizers complex and production of melamine complex at JSC
«Grodno Azot», Republic of Belarus
с. Summary description:
The project is aimed at construction of production complex that enables to fully meet the
domestic market demand in nitrogen fertilizers and at the same time to increase Company’s
export potential for nitrogen fertilizers, marketable ammonia and melamine.
А2. Progress Status:
A draft of a project is worked-out and capital investments are assessed.
А3. Organizations involved and their roles:
1) JSC «Grodno Azot» – the initiator of the project : 100, Kosmonavtov Avenue, Grodno,
230013 Republic of Belarus. S. Zharskiy, Acting General Director , tel.: (+375-152) 44-42-10;
2) Concern «Belneftekhim»: 73, Dzerzhinskogo Ave., Minsk, 220116, Republic of Belarus.
Moiseichik Mariya Ivanovna, tel.: (+375-17) 271-97-28.
А4. Project Description:
Nitrogen fertilizers production complex consists of: 1) ammonia production with capacity of
500.000 t/a; 2) urea production with a capacity of 590.000 t/a; 3) melamine production with
capacity of 60.000 t/a; 4) weak nitric acid production with capacity of 240.000 t/a; 5) production
of weak ammonium nitrate solution with capacity of 300.000 t/a; 6) production of liquid nitrogen
fertilizers – UAN, with capacity 720.000 t/a. The main marketable products are: a) UAN
solution; b) urea; c) melamine; d) marketable ammonia.
А4а. Project cost (mln USD):
700.0
A5. Background / history / overall programme / related or similar projects:
The first production line of JSC «Grodno Azot» was set in operation in 1963. Before 2002 the
plant was a state company. The Republic of Belarus holds 99,965% in the statutory fund of JSC
«Grodno Azot». Presently the joint stock company belongs to the Belarusian State Oil and
Chemistry Concern – Belneftekhim. The major activities of the company are production of
mineral fertilizers and caprolactam. High quality of JSC «Grodno Azot» products is confirmed
by a MS ISO 9001:2000 certificate. The Company’s production capacities consist of: 1) Liquid
industrial ammonia - 900.00 t/a; 2) Urea - 785.00 t/a; 3) Liquid nitrogen fertilizers (UAN) 720.000 t/a; 4) Industrial methanol - 66 t/a; 5) Caprolactam - 112.000 t/a ; 6) Ammonium
sulphate - 319.000 t/a; 7) Hydroxylamine sulphate, crystallized - 3.300 t/a.
A6. Environmental impact summary:
Introduction of modern technologies as well as microprocessor process control provides
optimization of production process, decrease pollutant emissions minimize emergency
probability.
A7. Possible obstacles/ problems/ risk assessment:
The risk level is not high. Possible but unlikely risks include force majeur related to natural gas
supplies from the Russian Federation. JSC «Grodno Azot» has a monopoly for production of the
above mentioned fertilizers in the Republic of Belarus. The Company's engineering and technical
stuff is highly qualified; its material and technical basis is very strong; these facts contribute to
stable operation of its production facilities and high-quality products. An advantageous
geographical position in the middle if Europe, proximity to trunk gas pipelines and Baltic ports
of shipments, availability of direct railroad shipments to the customers of Central and Western
Europe – all these increase the project appeal.
A8. Term of realization / term of recoupment (years):
5 / 12,5
A9. Project’s branch:
Chemical and petrochemical industry
B. Capital Cost Items (additional requirements for project):
B1. Project physical components
B2. Capital cost (mln USD)
Know-how, licensing and design works :
70.0
Purchase of equipment and materials (USA, Germany, Italy):
500.0
Construction and erection work :
120.0
Commissioning and start-up :
10.0
Total:
700.0
C. Capital Resources Available from Sponsors/ Proposers:
C1. Resources 'in kind', grants, investments, equity /
ownership, etc.
Internal funds:
C2. Amount (mln USD)
200.0
D. Required Financial Assistance:
D1. Financing gaps, type of financial assistance required:
Crediting
D2. Sources of finance
Foreign investment funds:
D3. Type of investment
D4. Amount (mln USD)
Credit, direct foreign investments:
500.0
D5. Financial/ International Institution Name:
E. Demand (users) and revenues:
E1. Type of users/ markets, volumes, pricing, revenues, quantifiable benefits/ savings:
Prospective sales markets for nitrogen fertilizers and ammonia are: 1) Byelorussian domestic market; 2)
North and South America, European Union markets. Prospective melamine markets are: IS, European Union
and South-East Asia markets.
E2. Revenues (Sales)
Sales proceeds:
E3. Amount (mln USD)
166.1
F. Operating and Maintenance Costs:
F1. Cost components, strategies for cost recovery, operating organisations, subsidies, etc.:
The Company has all the necessary production infrastructure and labor resources for the production
complex.
F2. Cost Item
Sales proceeds:
F3. Amount (mln USD)
122.6
G. Net Income Value:
G1. Net Income Value
Net income:
G2. Amount (mln USD)
43.5
H. Project information source:
H1. This form was completed by:
V.I. Ivanov, Deputy Chief Engineer for plant renovations, «Grodno Azot». A.V. Soyko, Deputy chief of Head
of Perspective Development Department, Concern «Belneftekhim».
H2. Organisation (address):
JSC «Grodno Azot»: 100, Kosmonavtov Avenue, Grodno, 230013, Republic of Belarus.
H3. Тel/Fax/E-mail:
Tel: (+375-152) 79-46-19, fax: (+375-17) 210-80-55. E-mail: ivi@azot.com.by , e-mail:
invest@belneftekhim.by
H4. Date:
12.12.2005
H5. Supreme Organization:
Concern «Belneftekhim»