OREANDA-NEWS. July 30, 2010. UralMethanolGroup and Czech Export Bank signed a Euro. 196.5 million Loan Agreement for a Methanol Plant to be constructed in Nizhni Tagil, in Yekaterinburg. This event was within the framework of the Urals International Exhibition and the INNOPROM-2010 Forum. The construction of the most advanced gas processing complex in Russia is envisioned by the Cooperation Agreement between the Government of the Sverdlovsk Region and ITERA.

UralMethanolGroup was established by ITERA GazNefteKhim (an affiliate of ITERA Oil and Gas Company, and UCP Chemicals AG (a principal shareholder of Uralkhimplast on a parity basis for the purpose of implementing this innovative project.

Danish Haldor Topsoe was a grantor of a license for the chosen technology. Haldor Topsoe has an extensive experience in constructing methanol plants. It also developed a basic design package.  Italian TECHINT and Czech АLTA were chosen as general contractors for the Project. They will construct the facility on a turn-key basis under EPC Contract.

The first tranche of the loan for the period of 13 years in the form of project financing, is to arrive this year. ITERA Oil and Gas Company and UCP Chemicals AG, the founders of the Project, shall act as guarantors for the Loan Agreement and invest in construction Euro. 108.4 million of proprietary funds.

The Plant with a capacity of 600 thousand tons of methanol a year is to be put in commercial operation in 2014. It shall be located in immediate proximity to production facilities of Uralkhimplast. According to the long-term Agreement, ITERA shall feed the plant with up to 600 million cu m of natural gas a year.  The Project’s discounted payback period is ten years.

The participants in the Project believe that the construction of the Methanol Plant in Nizhni Tagil shall help build and develop a chemical cluster in the Region. It will produce new jobs and ensure considerable tax revenue for the budget of the Sverdlovsk Region.

Alexander Misharin, Governor of the Sverdlovsk Region, Vladimir Makeev, Chairman of the Management Board of ITERA Oil and Gas Company, LLC, Alexander Gerdt, Member of the Management Board of UCP Chemicals AG, and Michal Bakaisa, Deputy General Director of Czech Export Bank took part in the signing ceremony.