U.S. Terra, Australian Orica Mull Petrochemical Investment in Peru

U.S. fertiliser producer Terra Industries and Australian chemicals producer Orica Mining Services are interested in opening a petrochemical complex in Pisco, southwestern Peru, Peru’s Production Ministry said on August 21, 2007.

The complex will have a capacity to produce 550,000 tonnes of ammonia and 300,000 tonnes of ammonium nitrate annually. The project will require a total investment of $1.2 bln (891 mln euro). The complex is expected to start operations in 2009, Peru’s Industry Vice-Minister, Carlos Ferraro, pointed out. The project will have a positive impact on job creation in Pisco, because the construction works will require at least 2,500 workers over a two-year period.

The Peruvian unit of Argentine oil and gas company Pluspetrol, Pluspetrol Peru Corporation, is currently negotiating with Terra and Orica over a contract for the supply of natural gas from Peruvian natural gas field Camisea. Natural gas is the raw material for the production of ammonia and ammonium nitrate. The negotiations are at an advanced stage and the companies could shortly reach an agreement, Ferraro said.

Currently, Peru imports some 170,000 to 190,000 tonnes of ammonium nitrate annually.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: August 22, 2007

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