Pemex invests $475 million to acquire, revamp urea fertilizer plant
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.
The project 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 national agro.
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 urea.
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 Prospero.
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