Petrobras’s Executive Board has approved initial steps for the reactivation of its fully-owned unit, the Araucaria Nitrogenados (ANSA) fertilizer plant. The company said last August it was in the final stages of studies for the resumption of production at the plant (GM Aug. 18, 2023).
The plant, located in Parana state alongside the President Getulio Vargas Refinery, has been dormant since 2020 (GM Jan. 17, 2020). At the time, Petrobras said it was mothballing the facility due to recurring losses and a failure to find a buyer. The plant has a production capacity of 720,000 mt/y of urea and 475,000 mt/y of ammonia, as well as 450,000 cubic meters per year of ARLA 32.
Petrobras also owns a partially completed nitrogen fertilizer complex, Unidade de Fertilizantes Nitrogenados III (UFN-III), in Três Lagoas, Mato Grosso do Sul state, as well as plants at Bahia (Fafen-BA) and Sergipe (Fafen-SE) that it leased to Unigel (GM Aug. 14, 2020), which are currently not in operation due to market conditions.
Petrobras also reported that it has signed a Protocol of Intentions (POI) covering several areas with China National Chemical Energy Company (CNCEC). The agreement will last for two years and will be immediately activated with the joint analysis of fertilizer and petrochemical assets. Renewable energy and energy transition are some of the areas included in the agreement.
The partnership also foresees the evaluation of potential commercial agreements in the areas of oil exploration, production of fertilizers from natural gas and other sources, production development, refining, biorefining and petrochemicals, engineering, construction, and services, in addition to research, development, and innovation.