Garabogaz Fertiliser Plant Project, Balkan Province, Turkmenistan

GRP pipe, Garabogaz

Turkmen state-owned company Turkmenhimiya is developing a large-scale fertiliser plant 3.5km east from the city centre of Garabogaz, Balkan Province, on the Caspian Sea coast. It is touted to become the biggest facility of its kind in Turkmenistan.

Construction works for the new fertiliser plant started in August 2014 and the facility is scheduled to start operations in June 2018. The project is expected to generate approximately 3,500 construction jobs and 700 full-time jobs.

"It is touted to become the biggest facility of its kind in Turkmenistan."

The required feedstock for the fertiliser project, which integrates an ammonia plant and a urea plant, will be sourced from the country's abundant natural gas reserves. The products from the project will primarily be exported, enhancing the country's natural gas products, as well as expanding and diversifying its exports and sales.

Garabogaz fertiliser plant details

The Garabogaz fertiliser plant is being built on an area covering approximately 600,000m². The ammonia plant will have a production capacity of 2,000t a day, whereas the urea plant will have a production capacity of 3,500t a day.

The project also involves the construction of a 50MW natural gas-fired combined heat and power plant, equipped with two sets of H-25 gas turbine and generator, which will be supplied by Mitsubishi Hitachi Power Systems (MHPS).

Other project components include the construction of internal access roads, a 2.5km-long conveyor system and a road connecting the project site with the Bekdas Harbour Pier, where the product will be conveyed, buildings to accommodate the workers, and a new water treatment plant.

Technologies for Turmenistan's biggest fertiliser project

The ammonia plant will be based on a technology licensed by Haldor Topsoe, who is also responsible for the engineering design of the plant and supply of related proprietary hardware. It will additionally equip the plant with a selective catalytic reduction (SCR) DeNOx unit to treat the flue gas from the facility, reducing nitrogen oxide (NOx) emissions.

The urea plant will be based on Uhde Fertilizer Technology's fluid bed granulation technology.

Financing for Turkmenhimiya's flagship project

The total investment in the project is estimated to reach $1.3bn.

A $1.16bn export loan is being provided by the Japan Bank of International Cooperation (JBIC), along with private financial institutions including The Bank of Tokyo-Mitsubishi UFJ, Mizuho Bank, Sumitomo Mitsui Banking Corporation and the Tokyo branch of Deutsche Bank. These financial institutions are being insured by Nippon Export and Investment Insurance (NEXI).

The Turkmenistan Government is acting through the State Bank for Foreign Economic Affairs of Turkmenistan (TVEB) in the borrowing.

Contractors involved with the Garabogaz fertiliser project

The engineering, procurement, construction and commissioning (EPCC) contractor for the project is the consortium of Mitsubishi Heavy Industries (MHI), GAP Insaat, the subsidiary of Calik Holding, and Mitsubishi Corporation (MC). MC is collaborating with Mitsubishi Corporation Machinery for the project.

MC and MHI will be responsible for the design, manufacture, procurement and commissioning of the plant, while GAP will be responsible for the construction, as well as the detail engineering and design.

Superlit is supplying the fibreglass-reinforced polyester (GRP) pipes for the cooling water system and will further supervise the submarine and onshore installation of the pipes. Sarplast is supplying the associated fittings, flanges and spools.