05/25/2018 | Press release | Distributed by Public on 05/25/2018 02:43
Saint-Petersburg, May 25, 2018 - Russian Direct Investment Fund (RDIF, sovereign fund of Russian Federation), Japan's Marubeni Corporation, Baltic Gas Chemical Company (BGCC) and Invasta Capital signed a trading and investment cooperation memorandum regarding the construction of a new methanol production plant in Ust-Luga port area. This agreement was signed today at Saint-Petersburg International Economic Forum.
The agreement states comprehensive collaboration concerning the commercial, corporate terms of the project development and the issues necessary for the final investment decisions of the project. The project consists in the construction of a world-scale methanol plant from natural gas with a capacity of 1.7 million tons per annum and sea export terminal in port industrial zone of Ust-Luga.
The parties have also reached an agreement for Marubeni's assistance for introduction of loan facility from Japanese financial institutions linked to the EPC contract with the Japanese engineering company.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said:
'Russia has large reserves of natural resources which creates a sustainable competitive advantage in terms of raw materials. However, if compared to other oil and gas exporting countries, we produce substantially less chemical products, including methanol. The volumes of gas utilization in methanol in Russia are the lowest among the leaders in gas production, and the potential of this sector is still not realized. Due to the joint project of RDIF and partners in this field, we will be able to increase methanol production capacities in Russia and generally contribute to the development of the gas chemical industry'.
Grigory Omelchenko, General Director, Baltic Gas Chemical Company llc (BGCC), commented:
«We are glad to develop the project together with the Japanese consortium led by Marubeni Corporation as well as with Russian Direct Investment Fund. BGCC and Marubeni already agreed the main terms and conditions of methanol off-take from the new plant. The plant will be built in accordance with the most modern and safe technology, and it will be one of the world's largest single-train methanol plants. Huge experience of Marubeni Corporation at the global chemical markets will be highly useful to effectively sale methanol from our plant»
Marubeni Corporation - Marubeni is a major Japanese integrated trading and investment business conglomerate that handles products and provides services in a broad range of sectors including oil&gas, chemical business spheres. 2018 is a year of 50th anniversary of opening its Moscow Office.
Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF's management company is based in Moscow. Further information can be found at www.rdif.ru
Baltic Gas Chemical Company (BGCC) - BGCC is the is the initiator and operator of the methanol plant project in the industrial port area of Ust-Luga, Leningrad region. The methanol plant will have a capacity of 1.7 million tons per annum and will use a natural gas as the main feedstock. The project is included in the Strategy for the chemical and petrochemical sector development of the Russian Federation for the period up to 2030.
Invasta Capital - is a private investment firm primarily investing in projects in the gas chemical and petrochemical sectors. Invasta is an investor in the methanol production plant and sea export terminal construction project in Ust-Luga, implemented by BGCC. The project development will promote Russian export of products with high-added value and increase competitiveness of the Russian chemical industry.
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: [email protected]
PR-Manager of Baltic Gas Chemical Company LLC
Mob. +7 926 523 5774
e-mail: [email protected]