U.S. Terra, Australian Orica Mull $1.0 Bln Petrochemical Project in Peru

A consortium between U.S. fertiliser producers Terra Industries and Australian chemicals producer Orica Mining Services declared their interest to invest some $1.0 bln (699.1 mln euro) in a petrochemical complex at a meeting with Peruvian President, Alan Garcia, Terra Industries' president, Peter Bennet, said on October 18, 2007.

The complex will be located in Pisco, Ica department, southern Peru. The choice of Pisco was grounded on several factors such as the access to maritime port, and the close location of gas pipeline and a village, which would supply the labour force needed for the complex.

The complex will produce ammonia and ammonium nitrate. Terra Industries will also sign a contract with the Peruvian ferlitiser producer Misti to start production of urea, which will be used for the fertilisers.

The consortium will participate in a tender for the natural gas of of block 88 of the field Camisea, operated by the Peruvian unit of Argentine oil and gas company Pluspetrol, Pluspetrol Peru Corporation. Natural gas is the raw material for the production of ammonia and ammonium nitrate.

Terra Industries is one of the largest U.S. nitrogen producers, with eight petrochemical complexes worldwide.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: October 19, 2007

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