Acquisition of license and BEP constitute a key stage of commencement of construction by RUSHIM Group of a new vertically integrated gas chemical complex in the Russian Arctic (the Nenets Autonomous Area) which includes:
- development of Kumzhinsky and Korovinsky gas-condensate fields;
- construction of the methanol plant with the capacity of 1,800 Ktpa and subsequent increase in gas processing capacity;
- export seaport infrastructure development near the settlement of Krasnoye (the Nenets Autonomous Area) with an access to the Northern Sea Route.
Also, at the St. Petersburg International Economic Forum RUSHIM Group entered into the cooperation agreements for the project with the following leading state and financial institutions:
- Russian Far East and Arctic Development Corporation, JSC (RFEADC, JSC) - he cooperation agreement for the project implementation and facilitation of state support mechanisms for the projects implemented in the territory of the Russian Arctic Zone.
- Russian Direct Investment Fund, JSC - the cooperation agreement for key investment parameters and mechanisms of RDIF, JSC into the implemented project equity.
- Russian Export Center, JSC - the cooperation agreement for providing support in establishing a new export-oriented production facility and non-resource and non-energy-based product exports including among other things credit guarantee and insurance assistance on the part of Export Insurance Agency of Russia (EXIAR) and EXIMBANK OF RUSSIA.
Also, RUSHIM Group is working with potential partners for the project in terms of construction of facilities (i.e., selecting EPC contractors), the project financing and finished product distribution. Due to the scale of the project, special attention is paid to the debt financing. Proactive actions are taken towards the project compliance with the requirements the Project Finance Factory program operated by VEB.RF, the State Development Corporation.
The project is implemented within the framework of the Strategy for Development of the Arctic Zone and Ensuring National Security of the Russian Federation 2035 approved by Presidential Decree No. 654 of 26.10.2020. Construction of the gas chemical complex is supported by the Nenets Autonomous Area Administration and will provide for non-energy and non-resource-based product exports with high added value.
