The development key trends of the nitrogen industry in ......Belarus EXPORTS/IMPORTS In connection with the development of agriculture within the country, the most of the produced

The development key trends of the nitrogen industry in Russia and the CIS countries

Valentina Kolodinskaya

Transformation: A New Era for the Agri-nutrients Industry

NIIK - years of engineering experience in Russia and abroad

2

NIIK is a large Russian engineering company that provides a wide range of

services is the field of design, technologies development, procurement,

investment feasibility studies, construction management. Performing the

range of services as an EPC contractor, the company has extensive

experience in implementing projects using process technology from foreign

licensors.

Our partners:Mitsubishi Heavy Industries, Toyo Engineering Corporation, Linde AG, Saipem S.p.A., Stamicarbon BV,Casale SA,

De Dietrich Process Systems GmbH, Chemoproject Nitrogen AS, Haldor Topsoe A/S, Maire Tecnimont SpA,

AIR LIQUIDE Global E&C Solutions.

Our customers:JSC MCC EuroChem, JSC UCC URALCHEM, JSC PhosAgro, JSC Ammonium, JSC Acron, JSC KuibyshevAzot,

JSC Togliattiazot, JSC Grodno Azot, LLP KazAZot, JSC Gazprom Neftekhim Salavat, LLC Shchekinoazot OHK,

OJSC Metafraks and others.

NIIK is a member of international associations of fertilizer industry –

International Fertilizer Association (IFA), Arab Fertilizer Association (AFA),

Fertilizer Association of India (FAI).

The company, in addition to its head office in Dzerzhinsk, includes an office for construction in Gubakha

(Perm region) and offices in Nizhny Novgorod, Moscow, Novomoskovsk, as well as a representative office in

Belarus.

PROJECT

IMPLEMENTATION

FROM A TO Z

1999 – Research and Design Institute of Urea and Organic

Synthesis Products JSC (“NIIK” JSC)

1993 – AOOT "NIIK"

1990 – GOSNIIKARBAMIDPROEKT

1952 – Dzerzhinsk branch of the State Institute of Nitrogen Industry

(GIAP)

Staff

The number of employees – more than 700 people

Average age of employees – 42 years

Average length of employment in the company – 7 years

Field of business

• Urea Ammonia

• Nitric Acid Methanol

• Ammonium nitrate Hydrogen

• Melamine

►Key indicators of the Russian nitrogen fertilizer market

in 2018

► Implemented and perspective projects for construction

of ammonia, urea, nitric acid and ammonium nitrate

production units

► Forecasts for development of production capacities in

Russia and the CIS

► Regions overview: Belarus, Georgia, Kazakhstan,

Ukraine, Uzbekistan, Turkmenistan, Tajikistan,

Azerbaijan

Agenda


Key indicators of the Russian nitrogen fertilizer market in 2018

Production capacities

17,7 million tons (+4% by 2017)

Production capacities

8.5 million tons (+ 4% by 2017) Production capacities

9,6 million tons (+2% by 2017)

export domestic consumption (market + further processing)

//upload.wikimedia.org/wikipedia/commons/d/de/Blank_map_of_Russia-gray.svg

//upload.wikimedia.org/wikipedia/commons/d/de/Blank_map_of_Russia-gray.svg


Implemented and perspective projects for construction of ammonia-urea complexes in Russia

Tolyatti

KuibyshevAzot

Creation of urea production

1500 mtpd (design engineering stage)

Tolyattiazot

Creation of urea production

2200 mtpd (construction)

Acron (Veliky Novgorod)

Urea Granulation Unit

2000 mtpd

(design engineering stage)

Revamping of unit No 6 along

with capacity enhancement to

2050 mtpd

Metafrax (Gubakha)

Production complex ammonia (900 mtpd)-urea (1750

mtpd) - melamine (120 mtpd)

(construction)

Shchekinoazot

Complex ammonia (1500 mtpd)

Urea (2000 mtpd)

(contract signed for design engineering)

Combined methanol 1350 mtpd (450 000 mtpy) and

ammonia 400 mtpd (135 000 mtpy) production

(completed)

Uralchem (Kirovo-Chepetsk)

Urea (2000 mtpd)

(intent)

New nitrogenous complex Sibur

(ammonia, urea) (intent)

ОТЕКО

Ammonia 2,5 million tpy,

Urea 2 million tpy

Methanol 3,5 million tpy

(intent)

Lukoil (Budennovsk)

Creation of ammonia-urea

complex (intent)

«Eurochem-North-West»

Kingisepp District

Ammonia production

2700 mtpd (completed)

PhosAgro (Cherepovets)

Urea 1500 mtpd (prilled)

(completed)

Ammonia production

2200 mtpd (completed)

KuibyshevAzot (Kursk site)

Urea 2600 mtpd

(contracting phase)Ammoni (Tatarstan)

Production complex

ammonia 2050 mtpd, methanol 668 mtpd

and urea 2050 mtpd

(completed)

New ammonia

production capacities

New urea production

capacities

New production

complexes

* - based on open source data

Eurochem (Kingisepp)

Ammonia (3000 mtpd)

Urea (4500 mtpd)

Complex (intent)

Completed projects for

the construction of

ammonia and urea

production units


Implemented projects for construction of ammonia-urea complexes in Russia (2011-2018)

Project Year of

completion

PhosAgro (Cherepovets). Urea production 1500 mtpd (prilled) 2012

JSC «Ammoni» (Mendeleevsk, Tatarstan). Complex for the production of ammonia 2050 mtpd, methanol

668 mtpd and urea 2050 mtpd 2015

JSC «Acron» (Veliky Novgorod). Ammonia production 2000 mtpd 2016

JSC «KuibyshevAzot» (Tolyatti). Ammonia production 1340 mtpd 2017

PhosAgro (Cherepovets). Urea production 1500 mtpd (granulated) 2017

PhosAgro (Cherepovets). Ammonia production 2200 mtpd 2017

JSC «Shchekinoazot» (Tula reg.). Combined methanol 1350 mtpd (450 000 mtpy) and

ammonia 400 mtpd (135 000 mtpy) production 2018

JSC «Eurochem-North-West» (Kingisepp District). Ammonia production 2700 mtpd 2019


New and perspective projects for construction of urea and ammonia production facilities in Russia

(DESIGN ENGINEERING AND CONSTRUCTION STAGE)Project Expected

completion year

JSC «Metafrax» (Gubakha). Complex for production of ammonia 900 mtpd, urea 1750 mtpd and

melamine 120 mtpd

Acron (Veliky Novgorod) Urea production 2000 mtpd (granulated, construction)

2020-2021

2020-2021

JSC «KuibyshevAzot» (Tolyatti). Urea production 1500 mtpd (500 000 mtpy) 2020-2021

JSC «Tolyattiazot» (Tolyatti). Urea production 2200 mtpd (770 000 mtpy) 2020

Revamping of urea production unit along with capacity enhancement up to 2700 mtpd at branch

«PMU» of JSC «UCC» Uralchem»

2021

Complex for the production of ammonia 1500 mtpd and urea 2000 mtpd at JSC "Shchekinoazot“ 2023

2024 PJSC “KuibyshevAzot” (Kursk site). Urea production 2600 mtpd (contract negotiation phase)

Uralchem (Kirovo-Chepetsk). Urea production 2000 mtpd (intent)

JSC Sibur New nitrogen complex (ammonia, urea) (intent)

Acron (Veliky Novgorod) Ammonia production 2000 mtpd (intent)

Eurochem (Kingisepp) Production of ammonia 3000 mtpd and urea 4500 mtpd (intent)


New projects for construction of nitric acid and ammonium nitrate production units

(DESIGN ENGINEERING AND CONSTRUCTION STAGE)Company Project

JSC «Acron» (Veliky

Novgorod)

Construction of 2 units of nitric acid UKL-7 with a capacity of 135

thousand mtpy each (commissioned in 2019)

JSC «Azot» (SDS,

Kemerovo)

Construction of a nitric acid production unit of about 170 thousand mtpy

capacity (commissioning - 2021).

JSC «Apatite»

(PhosAgro, Cherepovets)

Construction of the UKL-7 nitric acid production unit of 135 thousand

mtpy capacity (400 mtpd) Commissioning year: 2019.

PJSC «KuibyshevAzot»

(Tolyatti)

Construction of a large-scale nitric acid production unit of capacity of 500

thousand mtpy and ammonium nitrate production unit of 400 thousand

mtpy capacity (Estimated commissioning - 2024 and 2021)

PJSC «KuibyshevAzot»

(Tolyatti)

Construction of a nitric acid production unit UKL-7 of capacity of 135

thousand mpty. Year of comissioning: 2020

JSC «Shchekinoazot»

(Tula region)

Construction of a of nitric acid production unit of 270 thousand mtpy

capacity and ammonium nitrate production unit of 340 thousand mtpy

capacity. Estimated year of commissioning: 2021.

JSC

GrodnoAzot

The nitric acid unit was launched in February 2019, the construction of an

ammonium nitrate unit is under consideration

JSC «MCC Eurochem» Construction of a new nitrogen complex (intent) ammonia 3000 TPD,

urea 4500 TPD, nitric acid 1000 TPD, ammonium nitrate 1200 TPD


The forecast for the development of urea production capacities in Russia taking into account exports and imports


The forecast for the development of production capacities of urea and ammonia in Russia by 2023.


Possible increase in urea consumption in the CIS

0

0,5

1

1,5

2

2,5

3

3,5

4

m tones


Possible increase in urea exports in the CIS

0

2

4

6

8

10

12

m tones



Summary data on the development of nitrogen capacities (ammonia, urea, nitric acid, ammonium sulfate) for the period 2000-2022 (Russia,

Kazakhstan, Belarus, Kazakhstan, Georgia)

13.2

21.4

5.5

11.9 9.7

14.0

1.6 2.1

0.0

5.0

10.0

15.0

20.0

25.0

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

Mt product

Nitrogen capacity in Russia

Ammonia Urea AN AS

0.4

0.2

0.1 0.1

0.0

0.3

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

0.5

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

Mt product

Nitrogen capacity in Kazakhstan

Ammonia AS AN

0.9

1.1

1.1

1.2

0.2

0.5 0.5

0.5

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

Mt product

Nitrogen capacity in Belarus

Ammonia Urea AN AS

0.2

0.4

0.4

0.5

0.1

0.1

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Mt product

Nitrogen capacity in Georgia

Ammonia AN

Источник: EECA Regional Fertilizer Statistics


Belarus

PRODUCTION

1.10.3

1.30.3 0.1 0.2

11.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Ammonia AN Urea AS MAP Phos.Acid MOP

Mt productProduction (2007) Production (2017) Nitrogen consumption in Belarus is focused

on nitrate-based products: AN and UAN. A

quarter of urea consumption is in UAN

production. The consumption of nitrogen-

containing products for industrial use

remains very limited and fluctuates at a

level of less than 0.1 million tons N / year.

Two-thirds of total ammonia production

goes to urea. The production of other

nitrogen fertilizers is quite static.

FEATURES

1.1

0.3

1.3

0.3

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Ammonia AN Urea AS

Mt productSeries1 Series2


Belarus

EXPORTS/IMPORTS

In connection with the development of

agriculture within the country, the most

of the produced urea is consumed at

the domestic market.

Only a small part (400 thousand tons)

is exported.

0.0 0.0 0.4 0.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Ammonia AN Urea AS

Mt productExports (2007) Exports (2017)


GEORGIA

PRODUCTION

FEATURES

The only producer of mineral fertilizers in

Georgia is "Rustavi Azot". The main

products are ammonium nitrate (450 tons

per year), ammonia (400 tons per year), as

well as nitric acid (372 tons per year) ) and

ammonium sulfate (140 tons per year).

Ammonia is used to produce ammonium

nitrate, which is mainly exported.

0.2

0.5

0.0 0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

0.5

0.5

Ammonia AN AS Phos. Rock MAP DAP MOP

Mt productProduction (2007) Production (2017)

0.2

0.5

0.0

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

0.5

0.5

Ammonia AN AS

Mt productProduction (2007) Production (2017)


GEORGIA

EXPORTS

The export of ammonium nitrate is

growing and currently amounts to 400

thousand tons per year.

DEVELOPMENT PLANS

0.0

0.4

0.0 0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

0.5

0.5

Ammonia AN AS

Mt productExports (2007) Exports (2017)

In the near future, the development of investment projects is not considered


KAZAKHSTAN

PRODUCTION

FEATURES

KazAzot

ammonia 197 thousand tons per year,

urea 338 thousand tons per year

ammonium nitrate 337 thousand tons per year

KazAzot operates at a high capacity load: the production of ammonia and ammonium nitrate in granular form

is growing. Products from Kazakhstan fill the needs of the Ukrainian market in connection with the ban on the

import of Russian fertilizers into Ukraine.


KAZAKHSTAN

EXPORTS/IMPORTS

PERSPECTIVE PROJECTS

0.00.1

0.0 0.0 0.0 0.0 0.0

0.5

1.0

1.5

2.0

2.5

Ammonia AN Urea UAN AS CAN

Mt product

No changes are expected in the short term


UKRAINE

PRODUCTION

RovnoAzot

ammonium nitrate 540 000 mtpy

AzotCherkassy

urea 892 thousand mtpy


OPZ

urea 1 100 000 mtpy

Ammonia

Stirol

urea 940 000 mtpy


DneproAzot

urea 740 000 mtpy

UAN 50 000 mtpy

AzotSeverodonetsk

urea 390 000 mtpy



UKRAINE

FEATURES

Ukrainian fertilizer production has experienced significant difficulties since 2014-2015. This is

due to objective (military operations in the east of the country) and reasons associated with

economic problems.

Some manufacturers were forced to stop in 2018 due to competition with global

manufacturers in international markets. In 2018, only 44% of consumption in the Ukrainian

market was covered by its own production.

In 2018, anti-dumping duties for the import of nuclear plants were increased and a ban was

placed on the functioning of EuroChem and PhosAgro on the Ukrainian market.

In 2019, a complete ban on the import of all types of fertilizers from the Russian Federation

was introduced.


UKRAINE

EXPORTS/IMPORTS

DEVELOPMENT

Most of the industries operate irregularly and with limited capacity due to hostilities

and the general economic situation.


MIDDLE ASIA

PRODUCTION

FEATURES

UZBEKISTAN

o NavoiAzot

ammonia 550 000 mtpy, ammonium nitrate 950 000 mtpy, ammonium sulfate 20 000 mtpy

o Maxam-Chirchik

amonium nitrate 246 000 mtpy, urea 270 000 mtpy, ammonium sulfate 494 000 mtpy

o Fergana Azot

ammonia 400 000 mtpy, nitric acid - 360 000 mtpy, ammonium nitrate – 450 000 mtpy, urea 330 000 mtpy

Production is fully focused on domestic consumption.


MIDDLE ASIAUZBEKISTAN

INVESTMENT PROJECTS

• 2019 - 2020 Construction of the ammonia and urea production plant.

Expected capacity of 660 000 tons of ammonia, 577 500 tons of urea per year

• 2019 – Construction of nitric acid production unit.

The expected production capacity of dilute nitric acid is 500 000 mtpy.

NavoiAzot

Fergana Azot

• Modernization of ammonia and urea production

• Modernization of ammonium nitrate production and expansion of dilute nitric acid

production capacity


MIDDLE ASIA

PRODUCTION

FEATURES

TURKMENISTAN

o Garabogazcarbamide

ammonia 660 000 mtpy, urea 1155 000 mtpy

o Marycarbamide

ammonia 400 000 mtpy, urea 640 000 mtpy

Tejencarbamide

urea 350 000 mtpy (1050TPD)

MaryAzot

ammonia (2 units), nitric acid, ammonium nitrate 450 000 mtpy

Turkmenistan’s nitrogen fertilizer production infrastructure includes a powerful cluster of manufacturers. Production capacities

made it possible to fully satisfy the country's demand for nitrogen fertilizers and increase their exports. Using the enormous

natural resources, the nitrogen industry is developing at an accelerated pace.


MIDDLE ASIA

PRODUCTION

TAJIKISTAN

PROSPECTS

JSC JV TajikAzot

Out of operation for 11 years

No changes expected in the short term


MIDDLE ASIA

PRODUCTION

FEATURES

AZERBAIJAN

Azerbaijan’s internal urea demand is estimated at 100-150 thousand tons per year. A significant

part of the production (about 500 thousand tons per year) is supposed to be exported to Turkey,

Ukraine, and Georgia.

SOCAR

ammonia 396 thousand tons per year, urea 660 thousand tons per year


► Factors of internal regulation, increase in gas production, development of the chemical

complex were the key drivers of growth in demand for nitrogen fertilizers and the

initiation of projects for their production

► Due to the large share of export of products, most attractive projects are the ones

planned for construction in port areas with a low logistics component or with cheap

gas resources.

► The development of the nitrogen industry will be facilitated by the accumulated

experience, scientific potential and improved competencies of NIIK in terms of

scientific development, design, supply and construction

CONCLUSION

Thank youwww.gpca.org.ae

Documents

The development key trends of the nitrogen industry in ......Belarus EXPORTS/IMPORTS In connection with the development of agriculture within the country, the most of the produced