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.
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.
More ammonia capacity expansions are coming, judging by comments in the latest earnings reports from KBR and ThyssenKrupp.
In KBR's Q1 2015 Earnings Call ...
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.