RUSSIA WILL INCREASE AMMONIA EXPORTS

Today, Togliattiazot is among the top three ammonia producers in the country and among the top ten global leaders. It is the only chemical plant in the world that is capable of producing 3 million tons of ammonia and using it as feedstock right on the spot to produce mineral fertilizers for agricultural purposes. Overall, the plant’s ammonia production accounts for nearly 20% in Russia and around 10% in the world. Moreover, ammonia is exported to 120 countries on 5 continents. Continuity of supplies is ensured with TOAZ’s own railway yard and access to the unique Togliatti–Odessa ammonia line which runs for over 2,000 km.

The enterprise maintains the status of producer, one of the most important statuses for the development of the national chemical industry, and facilitates the strengthening of the Russian market positions in the global chemical industry. Apart from that, TOAZ is one of the key breadwinners in the Samara Region, because it is one of the five largest taxpayers of the area and provides jobs to more than 5,000 people.

Despite the economic recession and currency fluctuations, TOAZ is not just seeking to maintain its existing production rates, but also goes for global expansion. Since 2012, the enterprise has been implementing a large-scale modernisation program which has survived all crises. The objective of this program is to enhance competitiveness in the global market for chemical products, improve performance of the business, reduce environmental effects and make both regional and national economic environment better.

The program involves repairing and upgrading all facilities of the industrial infrastructure. Moreover, the production is being scaled up. Thus, by 2020 new units will be put into operation, including one of the world’s best-performing unit designed to increase the performance of 7 existing units and the third carbamide unit. The unit designed to increase ammonia production performance with a capacity of 1,860 tons per day is unique for the Russian chemical industry: purge gas from the units located at TOAZ area will be used as raw material for ammonia production. “This technology will enable TOAZ to ramp up ammonia production significantly and maintain its market leadership. It will not only drive unit performance, but also minimise energy consumption and environmental impact,” explains Mr. Vyacheslav Suslov, CEO at CJSC Togliattiazot Corporation.

However, apart from upgrading industrial facilities, success in the global markets requires geographical expansion of the distribution network. Therefore, TOAZ made the decision to develop its own marine logistics in Taman. When making this decision, TOAZ shareholders considered the widespread withdrawal of the Russian industry from CIS ports, but, essentially, our national interest in the development of its own port infrastructure that would be independent of foreign partners. Togliattiazot, in turn, is willing to make an investment in the project, thus ensuring extra-budgetary funding of the facility of national importance.

The unique infrastructural facility, a deep-water seaport for the transhipment of ammonia and bulk fertilizers on the Taman Peninsula, goes 2.5 km down into the Black Sea below its above-water loading rack. Access to the Black Sea basin is important not just for the development of Togliattiazot, but also for the economy of the whole country, because the new seaport terminal is going to expand the geography of Russian exports to the global markets. That is why the port of Taman is included in the Russian state sea port development program. The company is building the port without governmental support. The total volume of investment may exceed USD 300 million. The marine terminal in the Black Sea is expected to be started up by 2020. Thus, Togliattiazot will be able to manage an independent flow of exports, while Russia will benefit from a new business area,” said Mr. Nikolay Fedorov, Project Manager.

Creating independent export channels is one of the top-priority objectives for the Russian economy today. When put into operation, the seaport will reduce the dependence of the Russian chemical industry on Ukraine. Nowadays, when a substantial portion of ammonia is transited through Ukraine via the ammonia line, the position of the Russian business cannot be deemed as totally secure. Besides, operation of the port in Taman will create new jobs in Krasnodar Territory, boost the revenues to the federal and local budgets and redistribute profits from the Ukrainian budget, as is the case now, towards the homeland.

Unfortunately, not everyone is excited about the success of Togliattiazot. Unethical competitors make attempts to interfere with putting these ambitious plans to life, initiating unsubstantiated claims against TOAZ. These actions may not only lead to delayed construction of the seaport, but in the end they also threaten the implementation of the Federal Special Program for the Development of the National Transportation System Until 2020 with extra-budgetary financing. Nevertheless, ill-wishers are very unlikely to interfere with the company’s plans, because the seaport facilities covered by the Taman project have a high level of completion. That means that soon they are going to contribute to strengthening the position of Russia in the international arena.