MOSCOW (MRC) -- Mitsubishi Corp. (MC) and GAP Instaat Yatirim ve Dis Ticaret AS (GAP) have reached an agreement with the government of Turkmenistan for the construction of a large-scale fertilizer plant in Turkmenistan, as per Hydrocarbonprocessing.
The project will be undertaken in collaboration with Mitsubishi Heavy Industries (MHI) for Turkmen state-owned company, Turkmenhimiya.
The plant, to be constructed in Garabogaz, northwest of the country along the Caspian Sea, will be the largest urea fertilizer plant in the country, with contracts amounting to some USD1.3 billion.
The complex will consist of an ammonia plant with production capacity of 2,000 tpd and a urea plant with production capacity of 3,500 tpd, as well as other related infrastructure and delivery facilities.
Turkmenistan has had steady economic growth in recent years due to its natural gas reserves, the fourth largest in the world. The Turkmen government is also actively seeking to enhance the value added component of natural gas products as well as expanding and diversifying exports and sales in the sector.
The construction of this fertilizer plant is therefore consistent with that strategy, as it will enable the increase of fertilizer exports to countries around the world in response to growing agricultural food production, according to company officials.
As MRC informed before, preparations to start the construction of an industrial complex for polyethylene and polypropylene production in Turkmenistan's Kyyanly seaside settlement are underway. The news was announced by the Turkmen government on March 25. "This project is planned to be implemented with the participation of a Japanese consortium and a South Korean company," the Turkmen government said.