01 November 2012 22:07 [Source: ICIS news]
HOUSTON (ICIS)--CF Industries plans to spend $3.8bn (€2.9bn) on new ammonia and urea/urea ammonium nitrate (UAN) units at locations in Louisiana and Iowa, the US-based fertilizer producer said on Thursday.
CF said its board has approved budgeting $2.1bn for building new ammonia, urea and UAN plants in Donaldsonville, Louisiana, and $1.7bn for new ammonia and urea plants in Port Neal, Iowa.
The company expects the plants to start production in 2015 and 2016.
The two projects will produce 2.1m tonnes/year of ammonia, 2.0m-2.6m tonnes of granular urea and up to 1.8m tonnes of UAN solutions, CF said.
CF said the expansion will allow it to capitalise further on the global cost advantage of North American natural gas.
Donaldsonville is served by five natural gas pipelines tied to Henry Hub prices, and Port Neal can tap existing gas supplies from the Rockies, mid-continent US and Canada. More natural gas is expected to come from the Williston Basin in North and South Dakota.
CF said that permit applications for both projects would be submitted soon.
Uhde Corp of America will provide engineering and procurement services, according to CF.
The Louisiana project will create 93 jobs, and the Iowa site 100 jobs, according to the company.
($1 = €0.77)
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