Technip, Paris, said June 4 that it has been awarded a lump sum contract for the front-end engineering design (FEED) of CF Industries Holdings Inc.’s proposed grassroots nitrogen complex in Peru. The contract covers a 2,600 mt/d ammonia unit, a 3,850 mt/d urea synthesis unit, a 3,850 mt/d urea granulation unit, and the utilities and offsite facilities.
The complex, which would be built near the city of San Juan de Marcona, is the first major nitrogen complex in the country. It would be fed by natural gas from the Camisea field, which would be connected to the facilities through a new pipeline system.
A final decision on the project will be made once the FEED is complete, which is expected to be at the end of 2009. Technip completed the feasibility study on the project in fourth quarter 2008.
CF Senior Vice President and CFO Anthony Nocchiero told analysts June 3 at the Goldman Sachs Basis Materials Conference that the company has been making substantial progress on the project and expects to sign a gas contract soon. He expects the design to come in at an attractive cost structure. “All the factors in the market have been moving in our favor, labor, engineering, the cost of steel and equipment is getting better. So, we think, if anything, the market’s moving in our direction with what we expect to be a very attractive project.”