The foundation stone was laid on May 23 for the establishment of a new ammonium nitrate (AN) fertilizer plant at Abu Qir in Egypt by the country’s Minister of Petroleum and Mineral Resources Tarek El Molla, Egypt Oil and Gas reported.
The project, which envisages building capacity for the production of some 2,400 mt/d of granular AN as well as 1,200 mt/d of ammonia and 1,830 mt/d of nitric acid, is being developed under the auspices of North Abu Qir Co. for Agricultural Nutrients, a new joint stock company established last August by Abu Qir Fertilizers and Industries Co. (ABUK) and two other Egyptian state-owned companies.
ABUK holds a 45% stake in the new joint stock company, while Egyptian General Petroleum Co. (EGPC) and the Egyptian Petrochemicals Holding Co. (ECHEM) own 45% and 10%, respectively, of the new company, according to a Zawya report, citing a filing to the Egyptian Exchange.
Together, the partners are set to invest some $1.2 billion in the AN project in response to growing demand for the product following the imposition of Western sanctions on Russia, a leading supplier of the product, according to a report by bna IntelliNews, citing local media.
The proposed plant will be located on a land area owned by EGPC, and will utilize gas feedstock produced from the abundant large deposits of offshore fields in Abu Qir.
ABUK began a marketing and economic feasibility study for an AN production facility back in June 2021 (GM June 11, 2021). The ABUK board decision to pursue the study followed an earlier decision to abandon a plan to expand AN production at the ABUK-2 plant (GM Oct. 16, 2020).