One day - One Project

Email This Page

AM Agrigen selects Louisiana for new nitrogen fertilizer plant

AM Agrigen to invest $1.2 billion in Killona urea project

 The newly established AM Agrigen Industries Limited Liabilities Company is running full speed to propose a greenfield nitrogen fertilizer plant project near St Charles Parish in Louisiana, USA.

As part of all the national initiatives launched in USA to monetize the glut of natural gas generated by the shale gas revolution, AM Agrigen is jumping on the wave of fertilizers projects.

AM_Agrigen_Killona_St-Charles-Parish_Louisiana_Fertilizer_ProjectIn the chain of the hydrocarbon products that can be produced out of the natural gas, the ammonia and urea present the great advantage compared with other products such as ethylene, propylene and other olefin components to be marketable as such on the opened market.

Ethylenepropylene and other monomers cannot be used as such but require further chemical transformations.

Their production units must be integrated in large complex where all the polymers are combined together to deliver high added value hydrocarbon products.

These petrochemical complexes are capital intensive, take time for studies, design and construction.

Instead the ammonia and urea plants are much less capital intensive  and give the advantage to be self sufficient to deliver valuable products ready to ship.

In addition the demand for nitrogen fertilizer such as planned by AM Agrigen in St Charles Parish continues to grow in a sustainable way, especially in the USA which stand among the top three largest importer in the world.

AM Agrigen to benefit from Louisiana FastStart program

This context is therefore attracting investors and traders to become  producer of nitrogen fertilizer in proposing good margins at low risks for a long term period.

In that respect Louisiana is offering a perfect geographical location as it benefit in the same time from one of the largest gas pipelines system in North America on the supply side and from one of the most efficient transportation infrastructure by rail toward the local market and by ship to go overseas.

AM_Agrigen_Killona_St-Charles-Parish_Louisiana_UreaIn selecting Louisiana, AM Agrigen secures natural gas sourcing at the lowest price, while it enjoys the best offering prices between domestic and export.

Louisiana analyzed very well this opportunity to attract investors and put in place the Louisiana Economic Development (LED) FastStart service to simplify and speed up the whole investment and installation process.

Since October 2012, the LED FastStart is working in close cooperation with AM Agrigen to find the most convenient location and settle tax break agreement.

As a result, the young company AM Agrigen, just established in July 2013 in the Delaware, managed to  take options to acquire 650 acres in Killona near St Charles Parish in Louisiana.

In parallel, AM Agrigen is starting to work on the feasibility study for its $1.2 billion capital expenditure urea plant in expecting to make the final investment decision on mid 2015 for the first shipment from its St Charles Parish nitrogen fertilizer project in 2018.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer


For the lastest news about Oil&Gas and Digitalization, do not hesitate to follow our newsletter :

Leave a Reply