Venezuela to build 3m tonnes of urea capacity

06 March 2008 22:47  [Source: ICIS news]

MIAMI (ICIS news)--Venezuela’s state-run Pequiven will bring an extra 3m tonnes/year of urea capacity on stream in 2010-2015, a company spokesman said on Thursday.

The expansion is part of a previously announced plan by the Venezuelan government to spur projects in the fertilizer, methanol, propylene and other petrochemical markets, the spokesman told ICIS.

The ammonia/urea projects include:

* Construction of a 750,000 tonne/year urea plant in Moron, alongside a fully dedicated ammonia plant. The urea plant is expected to be completed in October 2010.

Toyo of Japan and Germany's Ferrostal have been picked to build the granular urea plant, which will eventually replace an existing 400,000 tonne/year prilled urea plant at Moron. The new plant will cover domestic requirements estimated at 350,000 tonnes/year. The balance will be for export.

* The Fertinitro II ammonia/urea plant at Jose, which is expected to be on stream in 2012. It will produce 750,000 tonnes/year of granular urea, with some ammonia for export. A turnkey contract has yet to be awarded.

* A joint venture with a group of Russian investors, Agrochemical Azot. Pequiven plans to build plants to produce 1.5m tonnes/year of urea and 1.1m-1.2m tonnes/year of ammonia at Guiria, on the Paria peninsula.

The plant will have about 200,000 tonnes/year of extra ammonia for export.

Pequiven has signed a letter of intent with Agrochemical Azot, which will have a 49% stake in the project. Financing is being discussed. A joint trading company will be set up to handle the output of the plants.

By: Antonella Harrison
+44 20 8652 3214

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