RDIF, Marubeni and AEON agree on the key terms of the project for the construction of a methanol plant
Press release, 10.09.2018
Vladivostok, September 10, 2018 - The Russian Direct Investment Fund (RDIF), the sovereign wealth fund of Russia, Japan’s Marubeni Corporation and AEON Infrastructure Corporation announce an agreement on the key terms of the project for the construction of a methanol production unit and chemical plant in Volgograd. A corresponding agreement was signed today in the presence of the Russian President, Vladimir Putin and the Japanese Prime Minister, Shinzo Abe at the Eastern Economic Forum.
The agreement sees the parties started developing marketing and logistics plans for the project. GTM ONE and Mitsubishi Heavy Industries Engineering Ltd. signed a Pre-FEED contract on the engineering studies including conceptual design. An agreement setting out the equity financing terms between AEON and RDIF was also signed on the sidelines of the Forum.
The total investment will exceed $800 million. Construction is expected to begin in early 2020, with completion in late 2022. The chemical plant will have an estimated production capacity of more than 1 million tons of methanol per year. It is planned that all the plant's products will be exported. The facility is expected to be constructed on the site of the Khimprom plant in Volgograd. The construction site already has the necessary infrastructure and is supplied with sufficient natural gas to meet production needs. The plant’s geographical location enables the transport of methanol to export markets with minimal transportation costs.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), noted:
“The joint project of RDIF and partners to construct a methanol plant will not only create a modern methanol production plant that meets international practices, but will also increase the domestic natural gas utilization in Russia. This project also holds social importance, its implementation will help to create more jobs in the region − approximately 600 jobs at the chemical plant and more than 3,000 in related industries. It will also provide significant tax revenues to the federal and regional budgets.”
Roman Trotsenko, Chairman of the Board of AEON Infrastructure Corporation, said:
“The substantial competitive advantages and application of advanced design solutions make it possible to build the most efficient methanol production plant in the Russian Federation. Indeed, the construction of methanol plant is only the first stage of development of the site, where the methanol plant will become the core plant of the future chemical complex. Russian-Japanese cooperation is widely represented in all main objectives of the project: from engineering and financing to offtake of products.”
Eiji Okada, Chief Operating Officer of Plant Division, Marubeni Corporation, said:
“We are pleased that we can cooperate with very prestigious Russian partners such as AEON Infrastructure Corporation and RDIF for the construction project of a methanol production unit and chemical plant in Volgograd. We would like to support our partners to realize the project with our best effort, together with Mitsubishi Heavy Industries Engineering, our reliable partner.”
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
AEON Infrastructure Corporation - a large private international investment and industrial group that implements long-term, integrated projects in the fields of industry, transport, construction and service. Further information can be found at www.aeoncorp.ru
Marubeni Corporation - one of the largest industrial and trade conglomerates in Japan with assets in a number of sectors of industry and commerce, including power & plants projects, food, consumer products, chemical & forest products, energy & metals, and transportation & industrial machinery.
For additional information contact:
Russian Direct Investment Fund
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
Andrew Hayes / Andrew Leach
Tel: +44 (0) 20 7796 4133