FEDF will invest RUB 7 bln in natural gas processing, Primorye Territory

The Far East Development Fund (FEDF) will invest RUB 7 bln in the construction of a mineral fertilizer plant in Nakhodka. A respective loan agreement has been signed on the sidelines of the Eastern Economic Forum (EEF) held in Vladivostok.

The project anticipates construction of a gas-chemical plant in the Neftekhimicheskiy ASEZ, to produce methanol for export. Natural gas will be supplied from the Sakhalin gas fields. The planned capacity stands at 1.8 mln tonnes of methanol per year. The facility is slated for commissioning in 2023.
The Fund’s resources will enable financing of the preparatory stage, as regards the EPC contract, and have already served as a catalyst for extra bank financing raised by the project initiator via the project financing vehicle. VEB.RF, VTB, and NZMU Group have signed respective financial documentation during the EEF.

The project will create over 1,500 new high-end jobs in the Primorye Territory. The plant commissioning will mean a significant accrual of tax proceeds for the regional budget as well as a more efficient use of natural resources. “The project parameters make it competitive in the international market thanks to the support provided by state development institutions, state-owned banks as well as the proximity of gas transportation infrastructure to large markets in China, Republic of Korea, and Japan”, says Director General FEDF Alexei Chekunkov.