Mitsubishi Heavy Industries (MHI) and Sojitz Corporation of Japan will be constructing what is expected to be the largest ammonia plant in the Russian Federation for PhosAgro-Cherepovets, a subsidiary of the Russian fertilizer producer PhosAgro. The order was won jointly with Renaissance Heavy Industries (RHI), a major construction company headquartered in Ankara, Turkey. The investment cost of this project would be USD 785M.
The ammonia plant will be built in Cherepovets, approximately 400km north of Moscow. It will have capacity to produce 2,200mtpd of ammonia using natural gas as feedstock, and will adopt the process technology of Haldor Topsøe A/S of Denmark. The plant is expected go online in 2017.
The order contract calls for provision of plant engineering, procurement and construction (EPC). MHI will be responsible for basic and detailed design work, equipment procurement, and dispatch of technical advisors for installation and test operation. Sojitz will handle coordination between related parties and transport within Russia, leveraging its business experience and track record in Russia. RHI will be in charge of construction work and transportation.
Demand for ammonia-based fertilizers is expected to continue expanding steadily worldwide amid rising food production in response to global population growth. Russia is increasing its fertilizer production and replacing many of its fertilizer plants that were constructed twenty to thirty years ago as the country seeks higher value from its natural gas resources and pursues advances in industrial development and agriculture.
