Midwest Fertilizer Company continues to juggle progress and setbacks on its $3 billion greenfield nitrogen plant in Indiana, following the December 2016 termination of its EPC contract with ThyssenKrupp. In the last few weeks, we've seen updates on the EPC contract, air permits, debt financing in Pakistan, and the $1.259 billion tax-exempt bond issue in the US.
Midwest Fertilizer Company's EPC contract with ThyssenKrupp is now terminated.
In case you wondered why the CEO of ThyssenKrupp Industrial Services resigned last week in Germany, it's all because of Midwest Fertilizer Company's greenfield plant in Indiana - and the (alleged) shenanigans involved in securing the Midwest EPC contract from Fatima Fertilizer Company in Pakistan.
UPDATED: 08/02/2016 — see Change Log
OWNER: Philipp Brothers Fertilizer (Phibro LLC / Energy Arbitrage Partners)
PROJECT: Ammonia plant conversion
SUMMARY STATUS: Planning Phase
In January 2016, investors announced plans to re-establish Phibro, the storied commodities trader. Five months later, in May 2016, Phibro purchased the gasification units of a decommissioned "clean coal" power plant, and announced plans to produce ammonia from petroleum coke.
This afternoon, the old-established, newly-purchased commodities trading firm, Phibro, announced plans to build a "world-scale" ammonia plant in West Terre Haute, Indiana.
The $450 million project is initially set to start up in mid-2018.
Fatima Fertilizer Company published its 2015 Annual Report last week.
I wouldn't normally write an update simply to say that a company has posted a document but, while lots of people are watching for news of Midwest Fertilizer's $2.8 billion Indiana greenfield, I think fewer people are watching its sponsor company in Pakistan.
Midwest Fertilizer Company announced yesterday that it had awarded the EPC contract for its world-scale nitrogen fertilizer complex to ThyssenKrupp.
This is the first real progress for the project in over a year: in Spring 2015, the previous EPC contract negotiations with Tecnimont collapsed. In the meantime, Midwest's sponsor, Fatima Fertilizer Company, has been busy wrangling regulatory issues with its equity raise in Pakistan, the $1.259 billion bond has been retired and reauthorized maybe a half dozen times, and the air permit has been extended until June 2017.
UPDATED: 03/09/2017 — see Change Log
OWNER: Midwest Fertilizer Company LLC (Fatima Group)
PROJECT: Greenfield nitrogen fertilizer complex
SUMMARY STATUS: Planning phase
Little forward progress seen since January 2016, when the EPC contract was awarded - but that was tarnished by a corruption scandal and terminated in December 2016. Construction was supposed to begin in mid-2016 for a 2020 start-up; now hoping for groundbreaking in 2017. Modified air permits will likely be awarded soon, but everything depends on reaching financial close, which now depends on getting a new EPC contract.
UPDATED: 07/09/2016 — see Change Log
OWNER: Ohio Valley Resources
PROJECT: Greenfield nitrogen fertilizer plant
SUMMARY STATUS: Financing Phase
Air permit granted, September 2013, and extended, March 2015. Two major companies awarded FEED and EPC, December 2013. Financing MOUs in place with foreign investors, February 2014. Nothing public since. "Finalization of project financing has delayed project construction." Any announcement of a new project sponsor - or project abandonment - is unlikely until the status of other, nearby greenfields is confirmed.