22 October 2013 20:33 [Source: ICIS news]
HOUSTON (ICIS)--Northern Plains Nitrogen will no longer request a loan from the city of Grand Forks, North Dakota, to help buy land on which it plans to build a nitrogen plant, the company said on Tuesday.
Earlier this month, the city gave preliminary approval for a loan of $250,000 (€182,500) to help buy land for the project. The total purchase price for the site is $1.7m, according to the company.
Northern Plains said it has determined that it was in its best interest to purchase the land on its own as it has found unspecified funding sources.
“We won’t ask them for this loan at this time. Financially, it just ended up being a better decision,” said Darin Anderson, Northern Plains president.
Northern Plains has estimated that the nitrogen plant will cost $1.5bn and will break ground in the spring of 2015 with production starting in 2017.
Officials have estimated the plant will have a rate of production of approximately 2,200 tons/day (2,000 tonnes/day) of ammonia and create 600,000 tons/year of nitrogen-based fertilizer.
The facility will convert gas currently being flared from oil wells in western North Dakota. The natural gas would be captured and transported to the plant via pipelines. The company intend on targeting buyers in the central US region as well as Canada.
In addition to foregoing the city loan, Northern Plains has relinquished its request to acquire a $250,000 loan from the North Dakota Development Fund.
($1 = €0.73)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections