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Midwest Fertilizer project back on track in Indiana-USA

Jacobs to provide PMC for Mt Vernon Fertilizer Project

The Kansas-based Midwest Fertilizer Inc. (Midwest fertilizer) selected Jacobs Engineering (Jacobs) to provide project management consultancy (PMC) for its world-scale fertilizer project at Mt Vernon, Posey County in Indiana, USA.

Midwest was established in Paola City, KS, in 1980 as a local distributor of fertilizers

Since then Midwest expanded its coverage in the Missouri, Oklahoma, and Arkansas and it widened its portfolio with crop protection products, seeds, fuels, lubricants, trucks  and information technologies dedicated to the farmers of this region.

Midwest-Fertilizer_Jacobs-KBR_Mt-Vernon_Indiana_Project_MapIn becoming a producer of nitrogen-based fertilizer with the Mt Vernon , Midwest is willing to take a leap in the US market.

USA standing as a major consumer and importer of fertilizers, the glut of ethane resulting from the shale gas development is opening the opportunity for number of companies to propose world-scale fertilizer projects in sustainable competitive conditions.

Midwest fertilizer is a global company with stakeholders all the world and with the Fatima Group from Pakistan as reference owner holding 49% stake.

Because of Fatima Group activities in Pakistan and neighboring Afghanistan, the US Authorities required Midwest fertilizer in May 2013 to go through a clarification process regarding the chemical formula used for the production of nitrogen fertilizers.

This additional process of approval caused the Mt Vernon Fertilizer project six months delay with stop and go consequences on its financing.

With the approval of the US Department of Agriculture, the Midwest Fertilizer project is now back on track.

With capital expenditure expected to rise up to $2.4 billion, the Mt Vernon Fertilizer project is a major project by itself, but even more for a company such as Midwest having only distribution activities in USA so far.

In this context, Midwest fertilizer awarded the PMC contract to Jacobs.

Midwest Fertilizer awarded engineering services to KBR

In parallel, Midwest fertilizer selected the Houston-based engineering company KBR to provide the technologies and the engineering, procurement and construction (EPC) services for its Mt Vernon project.

According to the contract signed between Midwest fertilizer and KBR, the engineering company will used its purifier technology to reduce the energy consumption and capital expenditure per produced tonne of nitrogen fertilizers.

KBR will also be in charge of the design and engineering of its proprietary equipment in relation with the Ammonia and Urea production.

The Mt Vernon Fertilizer project should produce:

Midwest-Fertilizer_Jacobs-KBR_Mt-Vernon_Indiana_Project – 2,200 tonnes per day (t/d) of ammonia

 – 2,640 t/y of urea

 – 1,440 t/y urea granulation unit

 – 1,840 t/y of nitric acid

 – 5,160 t/y urea and ammonia nitrate (UAN)

Among the largest nitrogen-based fertilizer projects in the US, the Indiana Midwest Fertilizer project may be the first one to start with the construction expected to commence with KBR on early 2015 for the first production targeted with Jacobs in 2018.

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