Sector News

Borealis and Agrifos to form JV for ammonia production project in US

May 21, 2015
Chemical Value Chain
Borealis says that it has reached a preliminary agreement with Agrifos Partners (Miami Beach, FL), a project development company, to jointly develop a world-scale ammonia project through its Gulf Coast Ammonia (GCA) unit. GCA was formed by Agrifos Partners to establish the world-scale ammonia plant. The plant will be located within an existing chemical site along the Texas Gulf Coast. GCA is in final negotiations with a short list of strategic site owners and expects to make a final site selection within the coming few months, Borealis says. The project will utilize hydrogen and nitrogen feedstock, with pricing linked to US natural gas indexes. The brownfield project is scheduled for mechanical completion and start-up in early 2019. The site will benefit from existing infrastructure and excellent logistics capabilities which will allow product supply to a variety of long-term off-takers and customers, Borealis says. The final agreement with Borealis, which would be subject to its supervisory board approval, contemplates significant equity participation by Borealis in the project. Borealis would also enter into a long-term offtake agreement for about 40% of the ammonia produced by the plant.
 
“We have a clear strategy of expanding our global nitrogen business,” says Markku Korvenranta, Borealis executive v.p./base chemicals. “By participating in the development of, construction of and offtake from a world-scale project in the United States, Borealis is able to secure long-term supplies of ammonia based on the attractive economics of US natural gas. It also is a key step in the Borealis goal to sell 10 million m.t. of nitrogen-based fertilizer products per year by 2020. Gulf Coast Ammonia’s project is all the more compelling because it builds on existing site capabilities and assets along the US Gulf Coast.”
 
Agrifos has extensive experience in acquiring, developing and operating fertilizer production assets. The company expects to make further announcements in the near future concerning additional product offtake commitments, feedstock supply arrangements, permitting and construction contracts, Borealis says. GCA has engaged Macquarie Capital to serve as its financial advisor for the arrangement of a non-recourse project financing. 
 
By Deepti Ramesh
 

comments closed

Related News

December 3, 2022

Corteva to acquire Stoller Group for $1.2 billion

Chemical Value Chain

Corteva (Indianapolis, Indiana) says it has signed a definitive agreement to acquire Stoller Group (Houston, Texas), a producer of biostimulants and plant nutrition products, for $1.2 billion. Stoller is one of the largest independent biologicals companies globally, with operations in more than 60 countries and more than $400 million in annual sales.

December 3, 2022

OMV introduces new corporate structure to drive sustainable growth and innovation

Chemical Value Chain

OMV has announced its new corporate structure today, designed to fully enable the delivery of Strategy 2030. The new organization will be built on five distinct areas. In addition to the CEO and CFO areas, three business segments will be established: Chemicals & Materials, Fuels & Feedstock, and Energy.

December 3, 2022

What does the current downturn in industrial manufacturing mean for executives searching for a senior role in the chemicals industry?

Chemical Value Chain

The European petchem sector is readying for some tough quarters. It’s a different picture in the US. So is this the best time ever to find a new role in the chemical industry? If you are in Europe, you would expect me to say probably not. But actually, it depends. So let me give you four answers to this question.