MEXICO CITY PMI signed a contract for the purchase of
the assets of the company Nitrogenous Agro. With this
purchase, Pemex will reactivate production to 990,000 tpy of
urea in Birds, Veracruz, starting from 2015.
involves an investment of
up to $475 million, including the purchase of existing
assets, as well as rehabilitation and renovation of the
plant. The expected production of urea accounts for about 75%
of current national demand for this strategic input to the
The potential plant production could replace fertilizer
imports by more than $400 million annually. However, it also
seeks to reconstitute the domestic market of this industry
and direct the product toward the lower level of economic
development in the country, located in the south east region
of the country.
Importantly, the recently passed by the Legislature, Energy
Reform will have access to a market with lower priced natural gas
in the world.
Meanwhile, natural gas
is the raw material
base for the production of ammonia, while ammonia is one of
the main inputs for the production of fertilizers, such as
Thus, to be able to have natural gas
at competitive prices,
it is possible to produce fertilizers in Mexico at
competitive prices as well, thereby increasing the
productivity of the sown in country and improving the income
of rural producers.
Ammonia will be supplied by PEMEX, located in Cosoleacaque,
Veracruz, just 28 km from Agro Nitrogenous facilities
Also, once the rehabilitation of the plant, the operation
will be conducted by Pemex technicians and operators.
With this operation, Pemex fulfills its commitment to the
Mexican countryside, the National Development Plan and the
initiatives of the President of Mexico Peña Nieto