Nitrogen project costs up – Alert
LSB Industries Inc. reports that while its El Dorado, Ark., expansion is on schedule, costs are up. The new nitric acid plant and concentrator are on schedule to be completed and operational by the end of the third quarter of 2015. The 375,000 st/y ammonia plant remains on schedule to be completed and operational in the first quarter of 2016.
The company’s current cost estimate for the EDC expansion is now in the range of $560 million to $575 million, up from the previous estimate of $495 million to $520 million. Based on management’s current project cost estimates and forecast for operating cash flow, at this time LSB does not expect to require additional financing to complete the EDC expansion other than the previously announced financings related to the installation of the cogeneration facility and the ammonia storage tank.