Petrobras Selects Consortium to Construct New Fertilizers Complex

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Brazil's national petroleum company Petrobras (NYSE:PBR) (Rio de Janeiro, Brazil) has selected the consortium formed by Sinopec Brasil (Rio de Janeiro) and Galvao Engenharia (Sao Paulo, Brazil) to construct a new fertilizers complex in Tres Lagoas, in the Brazilian state of Mato Grosso do Sul.

The Tres Lagoas fertilizers plant, also known as UFN3 (Nitrogenous Fertilizers Unit 3) will consist of a Urea unit with a 1.2 million metric-ton-per-year production capacity, a 4,000-ton-per-day Urea Granulation unit and a, 800,000-metric-ton-per-year ammonia unit. The ammonia plant will use KBR (NYSE:KBR) technology, while the Urea facility will use Stamicarbon technology.

In 2011, a consortium formed by Sinopec Brasil, GDK SA (Salvador, Bahia) and Galvao Engenharia (Sao Paulo) was selected to construct the plant. But in December 2011, GDK left the consortium, and the undertaking is now led by Galvao and Sinopec. The Tres Lagoas complex is expected to be operational in the third quarter of 2014.

At present, Petrobras has two operational fertilizers complexes, one located in Camacari, in Bahia state, and the second in Laranjeiras, Sergipe state. The company is executing a number of undertakings as part of a plan to expand its fertilizer production capacity. The UFN 3 is the first of three important new fertilizers complexes. The second site, called UFN 4, is located in Linhares, Espirito Santo, state and the third (UFN5) is in Uberaba, Rio Grande do Sul. The new facilities are expected to be operational by 2015 and will help Petrobras achieve self-sufficiency for its ammonia supply and most of the required urea.

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