SAFMAR Group, one of the leading independent multi-industry conglomerates of Russia, Maire Tecnimont, a leading international group in the field of engineering and construction, and Novaya Gavan, the owner of the marine terminal, signed a memorandum of understanding ("MOU”) for the development, construction, financing, maintenance and operation of an environmentally friendly methanol plant. The plant will be located in the port of Ust-Luga, the largest deep-water port of the Baltic Sea, 110 km west of St. Petersburg (Russian Federation).
The methanol production plant with a capacity of 5,000 tons per day will be integrated into the Novaya Gavan terminal in the north-eastern part of the Luga Bay of the Kingisepp District of the Leningrad Region with direct access to the Baltic Sea. The total investment value of the project is estimated at more than 1 billion euros. During the construction of the plant, the partners intend to use highly qualified personnel mainly from among the specialists living in the territory of the Leningrad Region. The planned term of the plant commissioning is the year 2024.
The parties agreed to discuss a joint development agreement and begin design work (“FEED”) under the leadership of Tecnimont S. p.A (the main EPC contractor of the Maire Tecnimont group) and the Russian design institute.
At the same time, the consortium participants plan to create a joint venture and will work closely together to attract project financing. The parties intend to attract funding from international banks with the support of one or more export credit agencies.
Mikhail Gutseriev, Chairman of the Board of Directors of SAFMAR Group JSC, noted: “The SAFMAR Group strategy provides for an active presence in the diversified segments of the fuel and energy industry. Now we are taking another important step towards the development of our gas sector - we are starting to build a unique enterprise for the Russian industry that will create added value to domestic gas and will export the highest quality gas processing products. It is important to note that this modern and environmentally friendly enterprise will also create new jobs and pay taxes to the budget of the Leningrad Region."