UPDATED: 11/24/2015 (no further updates expected) — see Change Log
OWNER: Agrium
PROJECT: Greenfield nitrogen fertilizer plant[memberful does_not_have_subscription=”1314-ammonia-industry-annual-subscription,1311-ammonia-industry-monthly-subscription,3338-ammonia-industry-30-day-subscription”]
COST (reported): $3 billion
JOB CREATION (reported): None given
START-UP DATE (reported): None given
| CAPACITY | REPORTED | ADJUSTED * |
|---|---|---|
| Ammonia | None given | [Membership required] |
| * Adjusted Capacity is in metric tons assuming 365 days per year (see Methodology). | ||
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ADDITIONAL INFORMATION
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[memberful has_subscription=”1314-ammonia-industry-annual-subscription,1311-ammonia-industry-monthly-subscription,3338-ammonia-industry-30-day-subscription”]SUMMARY STATUS: Cancelled
Agrium abandoned its plans for a world-scale greenfield in June 2013, when the cost estimate approached $3 billion. The company says the project is on hold while it finds a strategic partner and secures a long-term natural gas supply.
COST: $3 billion
JOB CREATION: None given
START-UP DATE: None given
LIKELIHOOD: Dead — see Methodology
| CAPACITY* | REPORTED | ADJUSTED |
|---|---|---|
| Ammonia | None given | |
| Urea | None given | |
| UAN | None given | |
| * Reported Capacity is “about 1.8 million product tonnes.” Adjusted Capacities show an estimated product mix, in metric tons assuming operations for 365 days per year (see Methodology). | ||
FEEDSTOCK: Natural gas
END PRODUCTS: Ammonia, Urea, UAN
RESEARCH NOTES:
In 2012, Agrium “commenced an early-stage evaluation” of a potential greenfield plant, with an unspecified location (“slated for the Midwest Cornbelt of the U.S.”). This would have been a world-scale plant, with an annual capacity of “about 1.8 million product tonnes” of primarily urea and UAN.
In June 2013, this project was “postponed” – and is likely to remain on hold indefinitely. “Due to the risk of cost escalation, the focus has shifted to finding a potential partner and long-term gas contract for the project.” At the same time, Agrium cancelled plans for an expansion at its Redwater, AB plant. Since 2013, Agrium has not released any updates on this project.
As of April 2015, Agrium’s active expansion projects in the US include a brownfield expansion at Borger, TX, and a possible restart of one ammonia-urea line at Kenai, AK.[/memberful]
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WEBSITE: http://www.agrium.com/
SOURCES:
As per KBR Press Release 12th March 2014, Agrium has awarded the company an engineering, procurement and construction (EPC) contract for a new grassroots urea plant whose Site has not been announced. Presumably this could be the Agrium’s greenfield project in the Midwest which you have been showing as “Dead”. Kindly check and update current status of this project.
Hi Ajay,
I don’t think so – the dead greenfield plant remains dead for the time being.
The new urea plant will be built at Agrium’s existing location in Borger, Texas. They are also doing an ammonia debottlenecking project there.
Even though the Borger plant’s ammonia capacity is increasing, its net ammonia output is expected to decrease because so much more ammonia will now be upgraded to urea.
Full information about the Borger project is over here.