Apr 30, 2010
Petrobras Announces Construction of Fourth Fertilizer Plant
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The spike in fertilizer prices several years ago convinced Brazilian officials that they needed to free themselves from unreliable and expensive imported fertilizers if they wanted to become a leading supplier of agricultural commodities. Their preferred method of achieving that goal was to direct Petrobras, the largest company in Brazil, to build fertilizer production plants throughout Brazil. The goal of the Brazilian government is to become self-sufficient in fertilizer production within ten years.
After meeting with the governor of Mato Grosso do Sul on Wednesday, Petrobras's president, Jose Sergio Gabrielli, announced the construction of their fourth fertilizer plant in Tres Lagoas, located in eastern Mato Grosso do Sul. The plant, which is scheduled to be operational in 2014, will use natural gas from Bolivia to produce 1.21 million tons per year of urea and 81,000 tons of ammonia per year. Petrobras has three other fertilizer operations located in Uberaba in Minas Gerais, Linhares in Espirito Santo, and Laranjeiras in Sergipe.
In 2009, Brazil's internal consumption of fertilizers totaled 22.4 million tons, nearly half of which was imported. By 2015, when all four new plants should be operational, urea production is expected to hit 3.659 million tons vs., an estimated internal demand of 4.076 million tons. Production of ammonia is expected to be 782,000 tons, which would be enough to meet internal demand.