Uralchem has reaffirmed plans to commission a new ammonia terminal in the Russian Black Sea/Azov Sea port of Taman by the end of this year, according to a Tass report, citing the Russian fertilizer group.
Uralchem reported late last year that it planned to commission the new terminal by the end of 2023 (GM Nov. 23, 2022).
The first stage rated for freight turnover of up to 2 million mt/y of ammonia will be put into operation in late 2023, a Uralchem spokesperson said.
Under a second stage of development, the capacity of the new terminal will grow to 3.5 million mt/y of ammonia and 1.5 million mt/y of urea, and is scheduled for completion by the end of 2025, according to the spokesperson.
Completion of the new terminal and its ramp-up to design capacity will help partly mitigate the problem of the suspension of ammonia transit through the Togliatti-Yuzhny pipeline, the company said.
Russia’s biggest ammonia producer and exporter, Togliattiazot, suspended ammonia transit through the pipeline on Feb. 25, 2022, following Russia’s invasion of Ukraine.
Russia used to pump up to 2.5 million mt of ammonia annually for export via the pipeline, and has threatened to end its participation in the “Black Sea Initiative” unless the United Nations (UN) forces Ukraine to re-open the pipeline.
The Black Sea agreement was brokered by Turkey and the UN and allows for Ukrainian grain to be shipped from Black Sea ports without being threatened by Russian warships. In turn, Russian fertilizer exports were to be allowed on the global market without sanctions.
While US and European Union sanctions against Russian products do not apply to fertilizers, the sanctions do not allow Russian banks access to the international “SWIFT” payment network.
Opposition to the re-opening of the Togliatti-Yuzhny is not only coming from Ukraine’s government, but from industry sources that said the pipeline passes through an active war zone, making damage to the line likely.