04 June 2013 00:00 [Source: ICIS news]
HOUSTON (ICIS)--Agrium is suspending the engineering work on a nitrogen greenfield project in the midwestern US while it assesses the company’s nitrogen expansion plans, the Canadian fertilizer producer announced on Monday.
Instead of proceeding with this phase, Agrium said it was focusing on securing strategic partners to help fund the sizeable investment necessary and acquire the natural gas contract needed for the proposed facility.
The company said the total projected cost for the facility was estimated at approximately $3bn (€2.3bn) with the expectation that the project could add 1.8m tonnes of production.
A decision regarding a brownfield expansion at the Borger, Texas facility has not been concluded, but a decision is still expected by second half of 2013.
Company officials were unavailable for immediate comment on the decision.
This decision comes after several new projects have been announced in recent months, propelled by the boom in the domestic gas supply, which has made producing nitrogen increasingly more profitable. There is a sentiment within the market that many of the plans for new facilities will never come to completion due to several factors including logistics, capital cost and eventual demand.
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