EuroChem Louisiana: MOU for EPC

EuroChem announced an MOU for the engineering, procurement, and construction of their proposed ammonia-urea plant in Louisiana.

Their US greenfield is one of five projects that they plan to develop over the next ten years, all covered under this MOU: the others are in Russia (an ammonia-urea plant in Nevinnomyssk, an ammonia plant in Kingisepp, and a urea plant in Kingisepp) and Kazakhstan (an ammonia-urea plant in Zhanatas).

If all five of these projects are completed, they will increase EuroChem’s annual capacity by “an additional five million tonnes of ammonia and 7.5 million tonnes of urea.”

This would more than double the company’s current capacity of 3 million metric tons of ammonia (mtpy), from two recently expanded plants in Russia and the former BASF plant in Belgium.

All told, these expansions would give EuroChem a gross ammonia capacity of around 8 million mtpy.

For context, that is bigger than today’s CF Industries, which has a gross ammonia capacity of 7.425 million mtpy or 8.185 million short tons (according to their 2014 Annual Report).

The announcement carried precious few details, but more information is in my Research Note for EuroChem – Louisiana.

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