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Ninh Binh Nitrogenous Fertilizer Plant

1. Project Name: 560,000 coal-based urea tpy production plant (1,760 ton per day)

2. Investment objective: The plant is to provide urea for agriculture in Red River delta and Northern provinces, replace imported urea with domestic one, stabilise urea price and long-term supply source for agriculture, ensure food security and effectively use resources available in Vietnam.

3. Owner: Vietnam National Chemical Group

4. Form of project management: To be directly managed by the Owner.

5. Type of investment: self- investment project.

6. Construction area: Ninh Phuc Industrial Zone, Ninh Binh province in an area of over 39 ha (the main plant 34 hectares, 2.15 hectares of slag tailings, 2-3 ha of port of coal entry and product coming-out

7. Design capacity:

Main Product: 1,760 urea tons per day (560,000 tons / year), with product quality:

+ Total amount of nitrogen (in % dry)> 46.3.

+ Biuret (%) <0.9.

+ Moisture (%) <0.5.

+ Formaldehydes (%) 0.07-0.1

+ Particle diameter: 0.85 to 2.80 mm (%)> 90.

- Ammonia as intermediate products: 1,000 tons / day (320,000 tons / year) for the synthesis of urea, with product quality:

+ Ammonia (%)> 99.8.

+ Water (%) <0, 1.

+ Oil (ppm) <5.

- Electricity production: 36 MW power generating capacity.

- Operation period: 320 days a year.

8. Material resources: coal raw materials and coal fuel in the coal mines in Quang Ninh.

9. Technology and equipment:

Applying advanced technology being used extensively worldwide for the production stages of the following:

+ Air separation stage: using technology by Air Liquid (France) to produce oxygen and nitrogen based on the pure liquidised at pressures of 2 different elements.

Main equipments: a multi-level turbine compressor to cool equipments and water circulation, air cleaning equipment; automatic control system DSC.

+ Coal Gasification Technology: Dust coal gasification of Shell (Netherlands).

Selected equipments:

- Grinding and drying system of coal: two systems (01 treadmill, 01 on standby), 70 tons capacity/hour/machine.

Gasification Systems: 01 systems of the Shell gasification furnace with a working pressure of 4 MPa.

+ CO conversion stage: CO conversion technology with sulfur- resistant catalyst Co-Mo.

Selected equipments:

- Tower of metabolic heat, size Φ 4000 mm x H l6.000mm, two catalyst layers with a total height hk = 6.600mm

Thap.chuyen of low temperature, size Φ 4000 mm x H 11.000mm, two catalyst layers with a total height hk = 5.600mm

+ CO2 and acid gas separation stage , using Germany’s low temperature methanol wash technology (Rectisol).

Equipment selected includes:

- Tower methanol wash disk with 93 disk tower size Φ 2,400 x H66.000mm;

- Tower of separating CO2 disk with 56 disk tower size Φ 2.500mm x H49.500mm;

- Tower enrich H2S disk with 73 disk tower size Φ 3.100mm x H43.500mm;

- Tower of renewable methanol discs with 30 discs, size Φ 2.400mm/3.400 x H22.000mm tower;

Tower separation of methanol / disk with the 51 disk, the tower size Φ1.000mm x H22.500mm;

+ Stage air purification: Using the technology of low temperature washing Rectisol with cleaning liquid nitrogen for the extraction of impurities such as CO, CO 2, Ar, CH4, etc ...

Equipment selected includes:

- Tower of washing liquid nitrogen, with 55 disk drive, size Φ1.800mm x H16.600mm tower;

+ The recovery of the sulfur recovery technology using the three stages of Claus.

Equipment selected includes:

- Claus Catalyzed Oxidation Equipment is horizontal form of composite structures, equipment size Φ 3.000mm x L5.250mm;;

- Heat exchange equipment and the blending valve;

- Excess heat boiler;

- Equipment condense,

- Equipment associated sulfur solid barrel.

+ Ammonia synthesis technology: Using the technology of synthetic ammonia Haldor Topsoe (Denmark).

Equipment selected includes:

- Tower synthesis of radial Topsoe S-200, size Φ 2.330mm x 96.3 mm x H20.960mm, catalyst volume = 58.5 m3.

- Superheated steam medium pressure Equipment, size 30mm x H6.110mm x Φ1080mm;

- Medium pressure boiler, size Φ 950mm x 3,500;

- Cooling NH 3 equipment, NH3 separation equipment, compressors and separators NH3; etc. ..

+ Stage cooling ammonia and storage ammonia: Using ammonia refrigeration compressor type, containing liquid ammonia at low temperatures (-33 ° C) and atmosphere pressure.

Equipment selected includes:

- NH3 compressor operated by steam turbines;

+ Urea Production Technology: Using Snamprogetti’s NH3 Stripping technology .

Equipment selected includes:

- CO2 compressor centrifugal type, operated by steam turbines;

- Tower of urea synthesis by Snamprogetti technology, size Φ2.200mm x H40.000mm;

- Separated tower by Snamprogetti technology, size Φ1.735mm x H15.500mm;

10. Ancillary items of plant:

Supply system, sewerage and sewage treatment, power station - power supply, steam supply, air supply, specialized ports and transportation systems, transportation inside and outside plants, communications systems, firefighting systems, material storage systems, containing products, slag dump coal, waste and items of administrative activities.

11. System of import raw materials and export products:

Coal is transported by inland and coastal waterways to the specialized port of the factory. Most products are sold in specialized ports and roads, and other raw materials, semi-products and wastes are transported out by cars.

12. Total investment and capital sources:

a) Total investment project to calculate: 397.740 million USD (inclusive of VAT, to be precise on the basis of detailed design, total cost estimates, bidding results and the domestic and foreign loan contracts).

Includes:

+ Fixed investment costs: 369.666 million USD.

+ Interest in construction period: 17.513 million USD.

+ Initial working capital: 10.561 million USD.

b) Fund:

+ Own capital of the Vietnam National Chemical Group: $ 10 million.

+ Supporting capital by Ninh Binh province: $ 4.4 million.

+ Estimated borrowing from other sources as follows:

- Borrowing from the Chinese government: $ 370.496 million.

- Loans from the Development Assistance Fund: $ 2.283 million.

- Short-term borrowings from commercial banks: $ 10.561 million.

13. Organization and management methods for project implementation:

+ Investor establishes PMU for implementing the Plant in accordance with current regulations of the State on investment management and construction.

+ The project shall comply with the international and domestic bidding form.

14. Project progress:

Construction period: 36 months.

According to Correction of Feasibility report of 560,000 coal-based urea tpy production plant (Decision No 555/QD-HCVN dated Nov 15th 2006).

I. Technology and equipment of the project are the following amendments:

1. Technology: Using the technology of CO conversion catalyst of China with China's catalyst QCS-01.

2. Equipment:

- Copyrighted equipments are supplied by technology copyrighters

- Important equipments are supplied by importers who are assigned by the technology copywriters

- Others are bought or produced by reputable suppliers according to European standards

- Using a coal sieve before pouring coal into a dry and grind machine

- Capacity of air separation process: 32,000 Nm3/h (base on oxygen) for full capacity of urea production.

- No investment for N2, O2, CO2 bottled machines because these products are only enough for urea production, not enough for sale.

- Adjust the storage capacity of NH3 liquid from l0.000m 3(5,000 m 3x 02 tanks) to 01 storage tank with capacity 7400 m3

- No investment in oil fired boiler system 10 tons / h (including oil storage tanks and pumps for oil).

II. Solution of construction projects following amendments:

- Do not build new coal port of entry and port of products, improve investment is only part of the port construction and the system is handling, transporting raw materials and products of the factory.

- Storage of coal will change from the method used silo containing to warehouses with a roof (180m long x 60m wide, area of 10,800 m 2). Warehouse is equipped with devices arranged piles, coal removal, conveyors and other auxiliary equipment.

III. Section 12, Article 1 Decision No 968/QD-HDQT, 08/29/2005 amendments are as follows:

A. The total investment of the project:

a) Total investment of the project by category: $ 497,722,171 (inclusive of VAT).

Includes:

+ Construction cost: $ 135,690,711.

- Construction cost: $ 49,488,108.

- Installation cost: $ 86,202,604.

+ Equipment cost: $ 258,220,344.

+ Other expenses: $ 76,974,701.

+ Reserve expenses: $ 12,311,430

+ Initial working capital: $ 14,524,985.

b) Total investment in the form of EPC contract: $ 497,722,171 (inclusive of VAT)

Of which:

+ EPC Package: $ 432,000,000.

+ External cost EPC packages: $ 38,885,756.

+ Reserve expenses: $ 12,311,430.

+ Initial working capital: $ 14,524,985.

B. Funds:

+ Own capital of Vinachem: $ 72,479,577.

+ Ninh Binh provincial capital support: $ 4,400,000.

+ Loans from other sources as follows:

- Loan funds by preference at least 90% of the value of EPC package from the Chinese Government: $ 391,773,856.

- Borrowing from the Vietnam Development Bank: $ 14,543,753.

- Short-term borrowings from commercial banks: $ 14,524,985.

IV. Section 14, Article 1 Decision No. 968/QD-HDQT date 08/29/2005 Board's amendments are as follows:

Construction period put the plant into operation: 42 months (including three months operating help).

Adjust the feasibility study report fertilizer production plant from coal dust capacity of 1760 tons per day (560,000 tonnes of urea per year) (Decision No. 646/QD-HCVN on 27/11/2007).

In Section III, Article 1 Decision No. 555/QD-HDQT date 15/11/2006 Board of the Corporation are the following amendments:

A. The total investment of the project:

a) Total investment of the project by category (including VAT): $ 667,046,503

Includes:

+ Construction Cost: $ 40,224,787.

+ Equipment cost: $ 419,200,700.

- Purchase of equipment cost: $ 349,133,738.

- Installation Cost: $ 70,066,962.

+ Other expenses: $ 170,020,900.

- The initial working capital: $ l5.544.644.

- Interest during construction: $ 76,757,223.

- Cost consultants and project management ...: $ 77,719,033.

+ Reserve expenses: $ 37,600,116.

b) Total investment in the form of EPC contract: $ 667,046,503 (inclusive of VAT)

Of which:

+ EPC Package: $ 498,867,561.

+ External Cost of EPC package: $ 115,034,182.

+ Reserve expenses: $ 37,600,116.

+ Initial working capital: $ 15,544,644.

B. Funds:

+ Own capital of the Corporation: $ 100,000,000.

+ Support capital of Ninh Binh province: $ 4,400,000.

+ Loans from other sources as follows:

- Borrowing from the Chinese Government: $ 250,000,000.

- Borrowing from the Vietnam Development Bank and commercial banks: $ 312,646,504.

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