PhosAgro, Moscow, is studying the construction of a complex for the production of ammonia and urea and is considering two sites for the project, either at Cherepovets, some 600 km north of Moscow, or at Volkhov in Russia’s Leningrad region, according to an Interfax report.
“We are adjusting our strategy through to 2025, and we are looking at how to improve our self-sufficiency in raw materials,” said PhosAgro CEO Andrey Guryev.
He said the company is first of all looking at improving self-sufficiency in ammonia, but is also thinking about other raw materials, such as sulfuric acid and ammonium sulfate. Guryev said the company is also discussing the development of niche special products and liquid fertilizers. He said feasibility studies are underway for all of these projects.
The new strategy is set to be approved by PhosAgro’s Board at the end of this year or early in 2022.
Guryev put the estimated cost for the ammonia-urea complex at about RUB120 billion (approximately $1.63 billion at current exchange rates), but if initiatives to eliminate “excessive construction costs” can be achieved – something the company is actively working on with the Russian government – the capex will be “significantly reduced,” he said. However, The CEO provided no details on the production capacities under consideration.
Meanwhile, the Russian fertilizer group is reported to be considering entering the Eurobond market in the third or fourth quarter of this year to refinance an existing bond of $350 million, according to Interfax, citing Guryev.