Russian methanol has found its place in Nakhodka

The first plans for the construction of the Nakhodka mineral fertilizer plant (Primorsky Territory) became public back in 2012. Even then, it could have been assumed that the commissioning of a facility of this scale could become one of the largest investment projects in the Far East of the Russian Federation. In addition, the emergence of a new plant on the coast of the Sea of ​​Japan can be considered confirmation of the development trend economic Russia's relations with the countries of the Asia-Pacific region.

The first agreement on the construction of a new plant in the priority development territory (TOP) “Neftekhimicheskiy”, which in 2022 was renamed to the “Nakhodka” TOP, was concluded in 2018 between Nakhodka Mineral Fertilizer Plant CJSC and the Far East Development Corporation. Investments in the implementation of this project were to exceed 278 billion rubles. It was planned to put into operation installations for the production of methanol and ammonia (the capacity of each of them is 1,8 million tons per year) and the creation of about 1,5 thousand jobs.



At this point it is necessary to talk a little about such a phenomenon as priority development territories, on the site of one of which (Nakhodka ASEZ) a new enterprise is being created. They began to appear in our country after the adoption of the Federal Law “On Territories of Advanced Socio-Economic Development in the Russian Federation.” In essence, they are special economic zones where preferential tax conditions apply and administrative procedures are simplified. If we talk specifically about the Nakhodka ASEZ, it currently includes 6 residents, and the total amount of investment in the implementation of projects announced on its territory is 861,78 billion rubles.

Returning to the Nakhodka Mineral Fertilizer Plant (NZMF), I would like to note that already in 2019, plans for commissioning methanol and ammonia production plants were slightly revised. So, the first of them was supposed to be launched in 2022, and the second in 2024. The amount of required investments has also increased; it has grown to 292,5 billion rubles. At that moment, many experts suggested that the reason for the postponement was due to the fact that the areas that would be required for the implementation of this project were not included in the Petrochemical ASEZ.

The same year technical Director of Nakhodka Mineral Fertilizer Plant CJSC Taras Ganaga emphasized that the company has already managed to conclude an EPS contract with a company from China (China Chengda Engineering Co., Ltd.). Its provisions include the design and construction of the plant. The main advantage of this type of contract is that the cost of the work is firmly fixed, which makes it independent of currency fluctuations and inflationary costs.

An extremely important aspect of the effective functioning of such an enterprise is the availability of raw materials necessary for production processes. That is why the site for the construction of a new plant is located next to the Gazprom pipeline system, stretching from gas fields on Sakhalin to the port of Kozmino. Even then it was known that NZMU had entered into a twenty-year contract with the energy company for the supply of natural gas in the amount of up to 3,15 billion cubic meters per year.

It is also necessary to pay attention to the fact that in 2023 it became known that the construction of a sea terminal for methanol transshipment began in Nakhodka (its cargo turnover will reach 1,8 million tons per year). The technological specifics of the new port facilities will make it possible to pump organic liquid from tanks through a pipeline directly to the ship, which completely prevents its entry into the bay. Captain of the seaport of Vostochny (Nakhodka) Andrey Vaibuzov emphasized that the new infrastructure will ensure safe and regular supplies of methanol and fertilizers to the countries of the Asia-Pacific region (APR).

The methanol itself will be produced at the enterprise through three-stage reforming; such technology helps to significantly reduce the carbon footprint. In essence, this project can be considered the Russian Federation’s response to the global trend towards decarbonization; it should become an important step in establishing a leadership position in the formation of a hydrogen economy in our country.

Don’t forget about the social events that will be held in parallel with the development of the new enterprise. Thus, instead of the 11 oil and coal boiler houses currently operating in Nakhodka, two gas boilers will be put into operation. This measure will ensure centralized hot water supply in the city, and will also relieve its residents from the presence of soot and soot in the air that is harmful to the health of any person. In addition, it should be noted that all work at the construction site itself (until the events of 2022) was supervised by representatives of the Danish company Haldor Topsoe, whose portfolio includes many projects related to various environmental solutions in the chemical and oil industries.

Already this year, an ammonia production unit should be put into operation at the enterprise. This compound is necessary for the synthesis of urea (these are the prospects announced by the project leaders), which is currently one of the most common and most valuable nitrogen fertilizers. Based on carbonic acid diamide (urea), plant fertilizers and liquids for controlling agricultural pests are created. At the moment, almost half of the world market (43%) for its production is occupied by China.

To summarize, we can conclude that NZMU is another serious step for the Russian Federation towards the transition from a resource-based economy to the export of high-tech industrial goods. The plant will implement a closed-cycle principle, which assumes that all natural gas processing products will be used in subsequent production processes. It is also necessary to understand that the launch of such a large enterprise in the Asian part of Russia, especially taking into account the approximate geography of export of its products (APR states), is fully consistent with the geopolitical realities in which our country finds itself.