IFA Asia ’10: Vietnam to add substantially to urea capacity

10 November 2010 10:37  [Source: ICIS news]

HANOI (ICIS)--Fertilizer producer and importer PetroVietnam will add a further 860,000 tonnes/year to its urea capacity over the next two years to meet rising regional demand, a company spokesperson said on Wednesday.

The state-owned company would increase the capacity of its 740,000 tonne/year plant at Phu My in the south of Vietnam to 800,000 tonnes/year by this year, once it had completed the installation of a carbon dioxide (CO2) recovery system, said Pham Tuan Son, deputy general manager of PetroVietnam’s fertilizer division.

Pham was speaking on the sidelines of the International Fertilizer Industry Association (IFA) Crossroads Asia Pacific 2010 conference in Hanoi, Vietnam.

In addition, the company’s new 800,000 tonne/year unit in Vietnam’s Cau Mau province was scheduled to come on line by the second half of 2012, Pham added.

A significant amount of urea would go to neighbouring countries for export, with Thailand and India the most obvious destinations because of their geographical proximity, Pham said.

Meanwhile, the Vietnamese government was separately planning to commission two new urea plants.

Under the plan, state-owned Vietnam National Chemical Corp (Vinachem) would increase the capacity at one of its plants to 500,000 tonnes/year from 180,000 tonnes/year in 2014 and add another plant with a capacity of 560,000 tonnes/year in 2011, Pham said.

With consumption fairly static in Vietnam’s domestic market, the new capacities should free up 1m tonnes/year of urea for export, Pham added.

The IFA Crossroads Asia Pacific 2010 conference takes place in Hanoi on 8–10 November.

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By: Mike Nash
+44 20 8652 3214



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