Morocco’s OCP Group SA aims to raise fertilizer output by more than 10 percent in 2022 to meet higher demand despite the loss of Russian ammonia from its supply chain, according to a Reuters report, citing a senior company official.
The state-owned phosphates major is targeting to increase production to 11.9 million mt this year, up from 10.8 million mt in 2021. It then plans to add another 3 million mt of annual output capacity in 2023, according to the report, citing OCP Executive Vice President, Performance Management Nada Elmajdoub.
OCP is expected to focus on production of MAP, TSP, and NP production, because these products need less ammonia to producer than does DAP. OCP sees demand for its products coming from India, the Americas, and Africa, the report cited Elmajdoub as saying.
Morocco imported some 1.65 million mt of ammonia last year, according to Morocco’s Office des Changes 2021 data. The country imported 826,255 mt from Russia in 2021, according to Trade Data Monitor, or around half its ammonia requirements.
Elmajdoub was quoted by Reuters as saying that on ammonia sourcing in particular, OCP had been working on building alternative supply “thanks to our strong network of suppliers globally.”
Longer term, the senior executive said OCP aims to start importing ammonia from U.S producers next year under a long-term supply deal, and it also expects to start ammonia production at a joint venture plant in Nigeria in 2025 (GM March 5, 2021).
OCP Group early this month inked an agreement with the U.S.’s Koch Ag & Energy Solution LLC, under which a Koch affiliate will acquire a 50 percent interest in Jorf Lasfar Fertilizers Co. III (JCF III) from OCP (GM March 4, p. 1).
As part of their agreement, the companies intend to collaborate on the supply of ammonia and sulfur to OCP, and leverage their logistical capabilities for the shipment of fertilizers from Morocco.
While never confirmed, major industry players believe that OCP has a sizeable offtake agreement with Gulf Coast Ammonia LLC (GM Jan. 10, 2020), whose new 1.3 million mt/y ammonia plant is due up in first-half 2023.