Nakhodka Fertilizer Plant launch delayed due to pandemic and difficult construction site terrain

VLADIVOSTOK. June 28 (Interfax) - The Nakhodka Fertilizer Plant has postponed its launch date to late 2025 - early 2026 due to a number of negative factors, project manager Viktor Semeno said at the Eastern Oil and Gas Forum in Vladivostok on Wednesday.

"Unfortunately, a number of external factors have had a significant impact on the project implementation schedule. Two years ago it was announced that we should complete [construction] at the end of this year. But a number of external factors have affected it, so the deadline has been postponed to the end of 2025 or early 2026," he said. A year earlier, plans were announced to reach design capacity in 2025.

The timing was affected by the COVID-19 pandemic, as well as the difficult topography and geological structure of the site chosen for construction, the presentation presented by Semeno said.

"Currently, we are finishing the implementation of infrastructure facilities. These are small facilities, but quite important. This year [December according to the presentation], the plan is to complete a small section of the gas pipeline from the Vrangel Gas Distribution Center to the plant site. Next year we plan to complete the construction of treatment facilities. In addition, a temporary camp for the builders was built," the project manager said.

In addition, the main on-site roads and sites for storage and sorting of soil have been built. The start of construction work on the sea terminal is scheduled for this year.

The main equipment for the project was purchased and delivered to special storage sites outside Russia, but the importation for the Nakhodka plant construction site is scheduled for this year, Semeno said.

For the implementation of the first phase of the project, an EPC contract with a fixed price was concluded. China Chenga Engineering Co., Ltd. was selected as the EPC contractor based on the results of the tender.

The Nakhodka Fertilizer Plant is an anchor resident of the Nakhodka Special Economic Zone. The construction of the first stage began in September 2021. Its capacity will be 1.8 million tonnes of methanol per year; the second stage will produce 3 million tonnes of urea. The website of the project states that the volume of private investment will reach 445 billion rubles.